Lease Vs. Own. Which Is Right For Your Business?

There are multiple factors for truck fleets to consider when deciding to purchase or lease a commercial truck.

Make the right decision for your business by understanding the financial considerations when it comes to truck ownership or a full-service lease. But the financial aspect isn’t the only factor to consider, advancing technologies and technician shortages are also reasons to think about when choosing to lease or own your trucks.

Is your core business transportation? If not, a full-service lease may save your company time and money. It can be expensive to manage the maintenance schedule of a truck fleet. Outsourcing this to a full-service lease provider that has expert technicians, and a network of facilities can lower the overall maintenance costs of operating a vehicle and increase your fleet’s uptime.

And depending on your business and fleet size, it may make sense to own some trucks and lease others. Tax rates and laws play role in the decision-making process as well. Depreciation tax benefits, down payments, and trace cycles are all considerations to think about. There are many things to consider when deciding between leasing and ownership.

Lease Own Analysis examples for a Peterbilt 579 Day Cab and Peterbilt 579 Sleeper.

Truck Ownership

What does it take to own a truck? Think about the costs associated with buying.  A down payment, financing rates, as well as things like IFTA, plates, local taxes and FET. Truck maintenance and the cost associated with it, including having access to the technology and qualified technicians.

Maintenance

Maybe you have routine maintenance covered, but what unexpected breakdowns? It’s important to have access to a road call network like GURU, TLG’s 24-hour call center so that you can get back on the road as soon as possible. A mobile service team is also important in the event a truck can’t make it to the shop. Our mobile service team is ready to provide extra aid on your turf and is available at 19 dealerships for routine maintenance to urgent engine work.

Financial Considerations

Finally, consider what will happen when you are done with the truck. Think about depreciation and what the truck will be worth when it’s time to sell it and the taxes associated with the sale of a capital asset. Research the applicable tax implications when leasing or owning a truck. Leasing can free up capital since there is no down payment.

Our goal is to maximize the value of your transportation resources and your uptime. Reach out the TLG Leasing & Rental team for a free consultation to help equip you with a comprehensive plan tailored to your fleet.

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