When you run a business, having a company truck can be a significant asset as it can be used for hauling equipment and other tasks. Are you contemplating buying a truck for your business but are hesitant to make the investment? Rather than buy a commercial truck, you could lease one just as many business owners are doing today. Here are six of the top benefits of leasing a company truck instead of buying a new one, along with some other helpful information.
One of the main reasons for leasing a commercial truck is that it doesn't require a huge capital expenditure. Unlike buying a vehicle, leasing doesn't involve hidden costs, such as taxes, towing, overhead and other expenses. Besides having to make large up-front costs, truck owners are also required to cover finance charges and pay a sales tax.
By leasing a commercial truck, you can obtain better profits for your business since your monthly payments are lower. As a result, you get to keep more money in your company's bank account. Furthermore, when there's less paperwork to do, you can have more time to devote to your business.
When your leased truck decreases in value because of depreciation, it won't affect you. In other words, you don't have to worry about depreciation costs, which is a problem when buying a new truck. Leasing doesn't reduce the net worth of your company, and it doesn't appear on the balance sheet of your CFO (chief financial officer).
Another benefit of leasing is a reduction in repair and maintenance costs. With a full-service lease, repairs and maintenance expenses are covered, such as oil changes, tires and routine inspections. But when you own a truck, you're responsible for repairs and maintenance.
When you lease a truck for your business, you're relieved of the common hassles you would typically experience with vehicle ownership. For example, you don't have to deal with possible compliance problems or fees linked with replacing drivers or costs for training drivers.
Another problem with owning your own company truck is having drivers leave your company to work for businesses that have more advanced equipment.
Many leasing companies don't require a down payment, which also makes leasing more flexible than buying a truck. Once your lease period has ended, you return your leased vehicle. This also gives you more flexibility.
What's more, the terms of a lease involve a fixed, consistent payment, which can make your finances more flexible as it frees up capital. This is especially helpful when you have to make business investments or pay for emergency repairs for your business.
Peace of mind in knowing you'll be rescued when your truck breaks down is a huge advantage of leasing. Unlike truck ownership, you can let your leasing company take care of vehicle breakdowns when you buy a full-service lease.
When your truck breaks down, you can contact an experienced mechanic who's on standby to handle whatever you need done. These specialists have everything needed for handling flat tires, towing and other types of problems.
It's important to understand the basic leasing terms or jargon involved in a lease, such as:
A common misconception is that leasing a truck is the same as renting one. Although leasing and renting do share a few common traits, they're not the same.
These are only a few reasons for leasing a truck for your business rather than buying one. If you're considering leasing a company truck, contact the fleet leasing pros at Wilmar. Our Charlotte, North Carolina company is the largest independent fleet leasing and management company in the Southeast and has earned the reputation for delivering high-quality service.