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How to Determine Whether to Buy or Lease Trucks

If some of the trucks in your fleet are starting to show their age, or if your hard work is paying off in the form of your business expanding, you may find that it is time to acquire some new vehicles. The two main options, of course, are buying and leasing. Which choice should you make? Here are some factors to consider in order to make an informed decision for your budget and business needs.

Advantages of Purchasing

  • The vehicles are yours. If there is a malfunction, you can get the problem taken care of faster. You are also free to make any modifications you deem necessary.
  • You will not be bound by a contract with a list of restrictive specifications of use, such as limits on mileage.
  • With conscientious, regular maintenance, the vehicles may last longer than expected, thus delaying the need to acquire new vehicles.
  • Purchasing yields equity, and you have the ability to sell the vehicle when you see fit, recouping some of the purchasing cost. If the vehicles are kept in excellent condition, the value could be substantial.

Advantages of Leasing

  • Automotive technology is continually advancing, and at a substantial rate. Since leases typically run no more than 3 years maximum, your vehicles will always have the latest in technology.
  • If your business cannot afford to pay cash for your trucks, and you can only purchase through finance, the alternative of leasing will mean little or no money up front, as well as a lower monthly payment - provided you do not exceed the allowed mileage in the contract.
  • With most leasing contracts, the lessor is responsible for repairing damages.
  • A lease to lease transition is less time consuming. There is no business to be done regarding trade-in.

There is no one correct answer for every business. It will depend upon the state of your individual company. Some factors will include how many miles you expect the trucks to incur each year, how much cash you can afford up front, and how long you expect to keep your vehicles. Please contact us for more information.

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