One question that truckers often ask themselves – should I buy or lease?
There are many advantages to owning your trailer and leasing a trailer. Deciding whether you should buy, or lease is a decision that should not be taken lightly. Each has its advantages and benefits over the other options.
The number one advantage of buying a trailer is Compliance, Safety & Accountability (CSA) and you are in control of it. While buying a trailer, we are looking at an immediate increase in revenue, however, the business owners need to think how much money it takes to keep the things they own in serviceable condition. The owner must consider (few of) the points below when buying a truck: –
- Repair Cost
- Inspection Fees
- Wear and Tear
- Warranty Coverage
- Future Upgrades
Many owners will only need to use their trailers from time to time, hence it makes more sense to lease their trailers than to buy and spend thousands to maintain them. The trailer needs to be kept in optimal condition to fulfill orders in the long-term. For these reasons, purchasing a trailer isn’t for every trucker.
Advantages of Leasing a Truck:
The main advantage of leasing a truck is that you can buy it – if you ever decide to. You will save a large amount of money during tax season. Another benefit of leasing is that you will only have to deal with fixed payments over a certain period. If you only need the trailer for a short – duration or one time it’s better to lease it. Leasing offers financial benefits and can be less expensive than owning because you are only paying for the use of the trailer. Again, the cost of maintaining a leased truck is less or rather none. The leasing companies have the responsibility to maintain their trailers. The business owner should analyze and consider these points if he or she is considering leasing one or more trailers.