In 2016, leases made up 31.9% of all the transactions for new cars. While that’s a very high number, that means that about two-thirds of people still bought cars. So what’s the better option?
When you’re looking to lease a truck for your business or buy a truck for your business, it depends on your situation. Considering all the options before you make a decision is important for success in your company.
When to Lease a Truck Vs. When to Buy a Truck
There are pros and cons to every pre-owned automobile. Because there’s a lot to think about when you’re deciding whether to lease a truck, you need to know all the facts.
The Cons of Leasing a Truck
An obvious con to leasing a truck is that you might pay more in the long run with this option. You’re paying for using the vehicle for likely a lease of two to three years, which is the time where the truck depreciates the most if you bought it new.
The truck may also come with a stipulation of how long you’re able to drive it. The limited mileage could put a real damper in your planned trade operations.
When you’re looking to strike up a deal with a loan company or the company that’s giving you your lease, you need to be wary of the language that they use. The leasing process can be confusing, and you could end up agreeing to stipulations that you actually don’t want.
You also don’t want to get caught in a lease that you’re unable to cancel if you want to go with another option. If you do cancel, you may have to pay a fee. You may already have had to pay a fee when you put the down payment on the lease.
Leasing a truck typically requires that you have good credit. Many companies will work with you and provide a plan that is customized to you and the needs of your business if your credit is less than perfect. Still, if you have a lower than average credit score, you may experience some difficulty when it comes to the leasing process because the company will be less willing to work with you.
While all these reasons might sound grim when it comes to leasing your truck, there are still reasons why this could be a good financial move for your company.
The Pros of Leasing a Truck
If you have a larger fleet of trucks, you might want to take advantage of leasing options. You may be able to count your lease payment as an expense.
Smaller fleets typically would choose to buy trucks, because they aren’t able to take advantage of the tax benefits as readily. Owning their asset outright is more appealing, because they likely have a longer owning cycle planned for their trucks than a bigger company that has more spending power.
If you need to make a choice that requires less commitment than buying, then this is the option for you.
Your monthly payment is usually lower when leasing a truck than it would be if you were paying off a monthly payment for a truck you purchased. You’re not going to be paying back any principal, which is a financial upside of leasing your truck.
Most leases that are done are made with new trucks. This means that when you’re driving the truck, you’re driving it in the prime of its life when it’s least likely to break down or have any issues.
If you do have issues with the truck, then it’s likely going to be covered on your lease that you can just bring it in and the repair is covered under the lease. That means that for the most part, your driving can be worry-free and you don’t always have to think about the potential that your truck will break down and you’ll have to foot the bill for potential repairs.
You might not be able to afford to buy the same truck that you would be able to afford to lease. This could be a pro if you’re driving the truck and want to make a good impression on your customers who see that you have the latest model of truck. It will also help to increase your business’ efficiency.
You don’t have to think about the trade-in value of the truck when you choose to lease or where you will sell it when you want to make an upgrade. At the end of your lease you just simply drop the truck off.
Make the Choice
Whether you’ve decided to lease a truck or buy a truck, one way or another you’re still going to need a truck. After you’ve made that important decision, you don’t want to throw your money away on a truck that’s not going to give you the best performance there is to offer.
That’s why you should get your truck from Mitsubishi Fuso Truck of America. You have diesel, gas, and electric options that are all highly fuel efficient. The FUSO also has the turning radius of a MINI Cooper, which for any car is impressive on its own.
It’s roomy and decked out with safety features, and you can request a quote or read up on the buying guide to make the process as simple as possible.
Know Your Options
The more informed you are about whether to lease a truck or to buy a truck, the better. If you make a decision quickly, there might be options that you didn’t consider.
Perhaps you’ve bought or leased a car before, and you weighed the pros and cons then. If you’re familiar with the buying process for a car, then you can use the knowledge that you gained from that experience and apply it to this venture.
The sooner that you settle whether you want to buy a truck for your business or lease one, the sooner you’ll be able to get out there and start growing your company.