In the times of economic depression, people need to turn to jobs they never thought they would do. Driving a truck for a living is one of those actions that is always needed on the job market, but not the most popular ones. So, if you are a newbie in this field, you might have some questions before you start your trucking business. The most important dilemma here is whether you should buy or lease a truck or trucks
What is it for?
Since trucks are massive, complex and expensive vehicles, you have to know what you are going to use them for. Also, the frequency of use matters here. For instance, if you need to drive a truck a couple of thousand miles per year, then leasing is definitely a better option. When you lease a truck, you make an arrangement about the mileage. So, up to a certain level, this choice will be more economical for your business needs.
On the other hand, businesspeople who know their mileage will exceed 15,000mi on a yearly basis should buy their own vehicle(s). Unlike leasing, buying has no limitations about the mileage.
In addition, check the IRS regulations related to mileage and tax deductions, to see how they deal with it in the USA.
Once you have realized how much you are going to use it, it is time to add the expenses to your pro-buying and pro-leasing lists.
- Costs of Leasing
If you want to lease a truck, this process has several phases. First you need do make a down payment and pay the security deposit to the seller. Only then are you allowed to start using your truck and paying your monthly payments. At the end of the story, you will have to pay for the extra mileage, given that you have crossed the limit, as well as for any damage on the vehicle.
- Costs of Buying
No matter whether you are going to buy a new truck or opt for a used vehicle, buying a truck means that you have to either have cash or get a loan from a bank to finance your trucking business. Also, you should know that new trucks depreciate fast, just like brand new cars. So, getting a new car is an option only for trucking high-flyers, whose monthly income will justify a new truck. On the other hand, if you are one of those who only want to be regular John Doe drivers, visit truck auctions and you’ll find the right vehicles for you.
Regular maintenance either way
Both buying and leasing a truck demands a committed and professional treatment of the given vehicle. When you lease a truck, you are even obliged by the terms and conditions of the agreement to take your truck for regular check-ups. It is for your benefit, as well; otherwise, you will have to pay any damage at the end of the leasing cycle.
Owning a truck does not oblige you to do anything, but having your truck regularly maintained and tested will reduce the possibility that it will break down on the road. With this in mind, you should definitely check out this vehicle maintenance check-up list.
Starting a trucking job needs thorough examination, no matter if you are planning to become an individual driver or form a fleet of vehicles. Either way, you will need to calculate what spends less money. Only then should you go and buy/lease your truck.