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Leasing VS Buying a Semi-Truck

0Trucking

Being a part of the transportation industry and thinking about leasing or buying a semi-truck can be such a difficult dilemma.

As an independent owner-operator, it is important to set the personal needs first.

Owning own truck is every trucker`s dream, so the biggest decision will be whether to lease or buy a new truck.

Choosing the right Semi-truck

• New Truck

There is nothing better than a new truck, but it is significantly more expensive than buying a used one.

New trucks come with an extensive warranty covering all types of damage or issues.

This helps you save money on damage repairs.

While being a first owner of the truck, you have a full knowledge of truck`s history and the way the truck is being maintained.

New sleeper cabs are well equipped with a bed, kitchen with mini fridge and microwave, technology gadgets and TV.

Just as important as truck performance is the truck comfort.

Drivers are spending a lot of hours driving, so the truck should be at ease.

New Freightliner Semi Truck

• Used Semi-Truck

Used Trucks are way cheaper than new truck, so thinking from a financial aspect this is far better choice.

Sometimes a used truck can be the same quality as a new truck if it`s been cared for properly.

Always buy from a reputable source.

Trustworthy dealerships should be able to show complete records of the truck`s history.

Also, there is a less risk since you put less money upfront.

Buying used truck can have its downsides, because you can never be completely sure what has happened to the truck in the past.

Used Semi Trucks
Before purchasing either new or used truck, make an extensive research.

Check the truck model online, verify their quality and ask for other driver`s experience.

Another factor can be fuel efficiency.

Newer models of trucks get better miles per gallon as well as lower emissions.

Used trucks should be tested.

Professional truck drivers know how good truck sounds like.

How much does a semi-truck cost?

Buying a brand-new semi-truck usually cost varies between $125,000-$175,000.

Choosing to purchase used semi-truck, expect to pay between $45,000-$100,000.

Leasing a semi-truck

Semi-truck leasing means getting a truck temporarily from a company for agreed period of time.

Truck drivers in a lease purchase program work as independent owner operators while making monthly lease payments.

The monthly lease payments vary from $800-$2500.

• Benefits of Leasing a Semi-Truck

Leasing a semi-truck means putting little to no money down. 

With this option drivers will be able to have the truck sooner than waiting to save enough money or to qualify for a loan.

The personal credit score can also be a factor in the leasing process.

Truck leasing companies do not check the credit score before assisting.

Some of them may do that, but simply to just determine the risk you are to them.

So, if you have bad credit score, the lease option could be the better option.

There is a buy-out option at the end of the lease agreement.

This allows to pay a predetermined amount to own the truck outright, meaning the truck could cost lower than initially planned.

The duration of semi-truck leases is up to 3 to 4 years, which means short term commitment.

• Things to Consider Before Leasing a Semi-Truck

Different carriers have different opportunities and policies when it comes to leasing a truck.

Before entering a lease purchase program, gather valuable information from other drivers who have previously or are currently leasing trucks.

This helps to understand which companies are reliable to invest your money and time to.

Also, don`t forget the power of online research.

A lot of useful information can be found online about each company.

Understand the contract.

Each sentence of the leasing agreement should be carefully read.

If there are clauses that are not very clear, you should ask for explanation.

There are companies who would take an advantage of not fully understood agreements and easily put you in financial problems.

Consider the insurance and taxes, which should be paid on your own.

Before signing the lease agreement, calculate the numbers to see how much you will be earning each month from driving the truck as well as the expenses that come with it.

• Possible Issues with Semi-Truck Leasing

Being aware of the problems that may encounter associated with the lease agreement, may help drivers to avoid them.

Some of those are: strict and confusing contracts; huge deposits; repair costs; escrow; overcharging for fuel taxes and huge insurance fees.

Lease Purchase Semi Truck

Buying a Semi-Truck

One of the biggest factors to consider when deciding to buy a truck is the financial status.

Buying a semi- truck is a huge investment and major financial commitment.

If you have saved a lot of money, then purchasing the truck in cash is the best option.

But, if you don`t have in savings the full portion of truck`s price, then you can finance the rest amount of money through traditional bank loans, dealer financing or online lenders.

Most lenders require 10-30% down payment on the vehicle.

Good credit score is considered of at least 600, with no repossession or bankruptcy on the record.

Every lender is going to do a background check of your financial records.

Owner operators who have at least 2 years driving experience and can show steady income, may qualify for 0% down payment.

Choosing the buying possibility, the truck will build equity and can be used as a tax write-off.

Other benefit that also comes from purchasing a truck is that the truck`s insurance is typically cheaper than the insurance on a leased truck.

When you buy your semi-truck, you have complete ownership and control of what happens to that vehicle throughout its entire service life.

Buying Semi Truck Dealership

Conclusion

It`s not a question if one of these options is better than the other.

The decision of buying or leasing a semi-truck should come down to your goals, long-term commitment as an owner-operator and what`s best for you at the moment.


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