The last thing your business needs is a venture that ties money down.
Purchasing a truck for your business requires paying high upfront fees, taxes, repairs, and maintenance.
Fortunately, several truck leasing companies offer you the best rates while covering service costs over your lease period.
Apart from the low upfront costs and full-service coverage, this article discusses other reasons you should consider long term truck leasing. View short term truck leasing tips!
How Does Long Term Truck Lease Work?
A lease is an agreement between you and the truck leasing company for a specified period.
Leasing a vehicle for more than 24 months qualifies as a long-term lease.
Your monthly payment for a long-term lease depends on the vehicle’s depreciation, lease period, interest, and fees.
Therefore, an extended lease period translates to lower monthly payments.
On average, people lease trucks for 36 months. You can stretch your long term lease up to 60 months, so you can pay less monthly.
RELATED: Discover More Facts About Cargo Leasing!
When is it absolutely necessary and beneficial?
Long term truck leasing is absolutely necessary for your business because they are not depreciating assets.
Therefore, they don’t show up on your balance sheet or affect your business’ net worth.
Also, they keep your fleet up-to-date. You can trade in your leased trucks for newer ones, keeping your fleet up to standard and non-obsolete.
Although mileage restrictions attract heavy fines should you defy them, long term truck leasing has its benefits. Read about Ryder cargo van unlimited mileage!
Some of the benefits of long term leasing include;
Leasing allows you to use vehicles you can’t afford instantly.
In addition, you don’t have to pay substantial upfront costs, and unlike buying a truck, you don’t have to pay taxes or towing fees.
Furthermore, your monthly payments are low, helping you keep more money to run your business.
- Zero Depreciation Costs
As soon as you purchase and start using a truck, it starts to depreciate.
Fortunately, with leasing, you don’t have to bother about your truck’s value because depreciation does not affect your fixed monthly payment.
This is more important when you engage in leasing bigger semi or long articulated trucks.
- Less Maintenance
Leasing a truck reduces maintenance and repair costs. As a truck owner, the maintenance costs of a car rack up over time, and it can be quite frustrating.
If you sign a full-service lease agreement, like with Penske, the leasing company covers all maintenance costs, including routine inspections and oil changes.
As a truck owner, selling your vehicle can be time-consuming and burdensome.
Also, because of depreciation, you’ll be selling the truck at a loss even if it is within the first year of purchase.
Long-term leases give you flexibility, saving you the hassles of selling your vehicle.
Furthermore, lease agreements have clauses and terms that allow you to change your lease period and upgrade or downgrade your vehicle.
Therefore, instead of selling the truck, you can return it to the leasing company.
Companies that offer best deals and rates?
The cost of renting a truck depends on truck size, age, model, and your lease agreement’s added features and services.
Small trucks lease such as 16 foot to 24 foot box trucks for $300/month for 36 months, while large trucks cost $1,000/month for 36 months.
Leasing a used truck costs $800/month for 36 months, and a new one leases for $2500/month.
|The companies offering the best long term truck leasing deals include;|
Long term box truck lease Vs Pickup
Your lease payment on a box truck depends on the lease period, your business credit score, and how long you’ve been in business.
Long term truck leasing prices vary from company to company. Prospective clients have to request quotes via the rental company’s website.
The lease on pickup trucks depends on the model, make, availability and location.
On average, dealers lease pickup trucks between $525/month to $1528 per month for 36 months; these dealers have several trucks available for long term leasing.
Generally, most rental companies don’t have fixed prices for long term leasing. You have to enter your preferences on their websites to get a quote.
How does leasing different then long term truck rental?
Both leasing and rentals require a monthly payment. Their difference, however, is the timeframe.
Leases have more extended time frames than rentals. A long term rental is for a period exceeding six months.
In this case, long-term rentals cost more than leasing for the same period.
RELATED: Pros and Cons of Leasing and Purchasing!
Answers to Your Long Term Leasing!
Can you lease a truck for hotshot trucking?
Yes. Most hotshot truckers spend a significant part of their income on loan servicing.
Furthermore, you can purchase your hotshot truck at the end of your lease if you sign an open-end lease.
A long term truck lease can help you save money on repairs, maintenance, and upfront fees.
You should consider a long term lease if you’re a business owner and big on cutting costs.
Signing a long term lease for about two to three years is beneficial to your business.