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Benefits of Leasing Trucks

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Within the transportation industry, there is a constant question as to whether companies should buy or lease vehicles. If you find yourself wondering whether there is a leasing truck benefit for your business, this blog could be of interest to you.

Benefits of Leasing Trucks

At Truck Loan Center, we make transportation our business by helping companies like yours. Whether you need help securing a loan or finding the appropriate equipment to grow your brand, we can help.

It’s important to note that leasing a commercial truck is very different from leasing a family sedan. There’s also the overall cost to consider. Buying a fleet of trucks versus leasing them is substantially different. We’ve compiled five reasons why leasing trucks could benefit your company. Here’s what you need to know about a full-service lease option in transportation.

1. Less Money Spent on Repair and Maintenance

Owning a vehicle has its pros and cons. A pro is that the commercial truck is yours to use as needed. A con is that should the vehicle require any form of maintenance or repair, it’s coming out of your pocket.

A major leasing truck benefit is the ability to avoid repair costs by passing the buck to the owner of the vehicle. Truck leasing companies include a maintenance package in their terms. This should include things such as:

  • Oil changes
  • Engine inspections
  • Tire rotations
  • Repair work

Of course, this advantage isn’t completely cost-free. When you sign a lease for a commercial truck or a fleet of commercial vehicles, your fee will include a monthly cost toward repairs and inspections. However, by paying these costs regularly in small portions, it delivers less impact on your company savings at one time.

2. More Time to Focus on your Business rather than Financing a Fleet

Whether your business is new or experienced, focusing your time, energy, and finances on a new vehicle detracts from day to day business. When you buy a commercial vehicle, it’s a big deal and a long-term investment. It requires research, meetings, financing, and bargaining for the best price—all of which takes time.

When you lease, even for the long term, you ease some of the above stressors from your business. Instead of focusing on finding the best truck for your buck and ensuring it’s in good running order, you can continue focusing on running your business and upholding company standards.

Truck leasing companies provide a detailed profile on each of their vehicles. This offers a thorough understanding of what you’re leasing and the type of funding it will require on your part.

3. You’re Not Losing Money to Depreciation

It’s a well-known fact that the minute you drive a vehicle off the lot, it depreciates in value. This depreciation only continues with mileage, age, and use. The same is true for commercial vehicles, and as your owned trucks depreciate, you know you’re losing value on their future sale when the time comes to replace or upgrade.

When you lease a commercial truck, you get all the benefits of a new vehicle without the loss of value as it ages. This is a big deal when you consider the net worth of your company, including assets. The CFO balance sheet won’t include depreciating assets. On reflection, this provides a low-risk investment with a large payoff. The cash flow is still there, without the asset affecting the net worth of your business.

4. Higher Driver Satisfaction Rate

What is a transportation company without drivers? Keeping your drivers happy ensures your organization has the best employees behind the wheel. When equipment begins breaking down and missing essential upgrades, your drivers may choose to leave for a company with newer vehicles. Leasing ensures you always have access to the best vehicles with the newest features. As your lease expires, you can lease the next model in your fleet.

Along with satisfying drivers, you also ensure that driver safety is the highest priority. New vehicles are safer because of faster response time, upgraded technology, and additional safety features that older vehicles may lack. Owned but aged vehicles have a higher risk for breaking down on the job and putting your driver in jeopardy.

5. Fewer Hassles Relating to Truck Use

An attractive leasing truck benefit rests in the hassle-free nature of a lease. Working with a third party ensures your trucks are always road-ready. If you require a replacement vehicle because an owned truck needs maintenance, you’re on your own to provide one. This is a stipulation you can add to your lease agreement, ensuring replacement vehicles are always available should your leased truck require maintenance.

Another hassle to avoid is the rigidity of buying. Once you’ve purchased a vehicle, it’s yours cut and dry. When you lease, there is a flexibility to your agreement. You have the option to create many of the terms yourself or negotiate ones provided to you. For many transportation companies, this is an enticing bonus.

There’s also the huge benefit of freeing up capital. When you purchase a vehicle, it requires a huge chunk of your business’ money. This is a hassle if you need that money for other things, or if the reflection of this negative balance appears poorly on a financial report. Whether this is coming out of profits, a term loan, or a line of credit, it’s costing your business substantial funds that could be directed elsewhere.

Why choose Truck Loan Center?

Truck Loan Center works closely with many transportation companies and can help you on your way to developing a fleet of your own. We work with new and established businesses, ensuring you always have trucks on the road and money in the bank.

If you’re interested in learning more about the benefits of leasing a vehicle, or about the financing side of truck ownership and leasing, then we’d love to hear from you. Our professional and experienced staff are well-versed in all our products and services, and would be happy to answer any questions you may have.

Visit us here to request a free one-on-one consultation with a truck lease specialist today.

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