If you rely heavily on transporting various items from one location to another, you definitely need to invest in trucks. But the big question is: Whether to buy or to lease? Both options have their own positive and negative sides, and the decision will depend on your needs and budget. Read the text below to find out which option works best for you.
The Case Of Leasing
Leasing a truck instead of buying one is like renting an apartment. You pay monthly fees to use the apartment but you don’t own it. The leased truck will remain in property of the lessor or the company that issued the lease. You may be wondering why leasing makes sense? The biggest advantage of leasing a truck is the flexibility. By leasing a truck, you are not making a long-term investment. You are signing a contract with the leasing company that includes details about the payment method and period of use. When the lease period ends, you have two options: either to buy the truck by paying the remaining balance which is called a residual value, or to return the vehicle to the leasing company.
Another benefit is that the monthly payments are always lower than the payments that you will need to make if you decide to buy a new truck. This means that you will have more money that can be spend on other important things that will bring more profit for your company. Furthermore, the leasing option allows you to take and to use a newer truck model which you cannot afford to buy. By leasing a truck, you will always drive a truck in good condition, and you will avoid all the maintenance requirements. The leased truck will be under warranty for the duration of the lease, and this warranty usually covers the routine service and maintenance checks, such as oil or filter changes.
The Case Of Buying
For some people leasing or renting is not an option, and they are always interested in buying and owning certain things. Many individual truck drivers or trucking companies decide to buy trucks for a number of reasons. Although more expensive option, buying a truck means that you have equity in the truck. Beside the fact that the new truck has higher depreciation rate, as long as it is good for transporting various things, it will be worth something. The value of the truck you own can be used as a trade in, and the truck can be always sold if you need money for other things.
One big disadvantage if you decide to lease a truck is that most leasing contracts determine the maximum number of kilometers you can pass until the end of the leasing period. If you exceed the maximum, the leasing option can become quite expensive. You need to pay attention on this detail if you decide to lease a truck. Owning a truck on the other hand, means that you can drive and use the truck as much as you want. You can also do some changes on the truck, like changing the stereo system, tires, etc. You cannot make any changes or modifications in the leased truck.
Leasing is a better and more affordable option if you need a truck for short-term or light transportation tasks. Buying a truck on the other hand, makes sense if you plan to use the truck extensively for transportation of various goods and materials. As said at the beginning, it is up to you to decide which option works best for you.