Getting into the trucking industry can be expensive. If you’re thinking about becoming an owner-operator, you need to decide if you want to buy or lease a semi-truck. Understanding the pros and cons should make it easier for you to make the best choice.
Create a List of Essentials When Buying Your Own Truck
Purchasing a semi-truck is a significant commitment financially. You’ll need to cover the cost of the truck and any additional features. Before you start shopping, it’s usually best to create a list of the essentials and features you’ll need. Some of these items might include a top-of-the-line engine, towing capacity or sleeper cab.
What’s the Cost?
The costs depend on what state you’re shopping around at. For example, new and used semi trailers in Allentown PA can vary in price widely but might not be as expensive as buying one in California as the taxes might differ. Other factors that make this difference are usually associated with the amenities that are included. Buying a truck with just the basics will cost less than one that includes the latest features and amenities. New trucks may start at $80,000 and go over $200,000, depending on the features included. Purchasing a used truck can be more affordable. Depending on the age of the truck, mileage and engine type, the price may start at around $15,000 and go as high as $100,000. A medium-sized semi might average between $20,000-$40,000. Choosing a heavy-duty truck can cost $30,000-$80,000.
Leasing a Truck
Leasing provides another option and may be the best option if your company does not have enough capital to buy a truck. According to the experts at Hales Trailer, “Renting may make it more affordable to use trailers that contain certain technology and features too expensive for a trailer purchase. If you or your company are not prepared with necessary capital to purchase a trailer, you can easily rent.” With this choice, lenders usually want to finance newer vehicles. This can help ensure you’re operating a highly reliable truck. Evaluating some of the advantages of leasing can help you during the decision-making process. These benefits include the following:
– Can upgrade more often
– A better option if you have less than excellent credit
– Possibility of incentive offers
– May have a lease to own option
– Low down payment
While these advantages of leasing a truck are attractive, you have full ownership of your vehicle, a greater variety to choose from and lower monthly payments when you decide to buy a truck. Whatever decision you make, it’s vital to scrutinize the contract before committing. Leasing can come with significant monthly payments, a large deposit and force you to use specific repair facilities if you have a problem that requires fixing.
Buy or Lease?
With either choice, you’ll need to make monthly payments unless you plan to buy the truck at full price in case. This amount will be determined based on your credit score and the amount of money you have for a downpayment. Having poor credit will likely force you to pay a larger down payment if you’re trying to buy a truck. It may be easier to lease if you’re in this position as the credit check for this option is often less rigorous. Write down and examine the numbers for each option. Conducting research should help you determine the best deal for your unique financial situation and career goals.
Working as a truck driver can be rewarding and profitable. Still, it’s critical to weigh your options when leasing or buying a semi-truck as it can significantly affect your bottom line.