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Benifits of Leasing Over Ownership

The decision to buy or lease a truck for commercial use is not an easy one. While transportation needs vary from one company to another, and no fixed formula guarantees the right choice for all, here are factors well worth considering:

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Leasing frees your money for investment or use in your core business. Rather than tying up assets in a fleet of vehicles that may not be relevant to future needs, why not use your money as working capital? Leasing also places less strain on your company’s credit lines.

Owning a fleet of properly managed and maintained trucks requires trained personnel. Paying staff salaries to qualified professionals can drain your financial resources, but not staffing your fleet adequately can, in the end, cost you even more.

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Leasing helps you predict your annual transportation costs more accurately.
With full maintenance written into your leasing agreement, there’s no chance of being hit with any unexpected, big-dollar service bills. Accurate projections of expenditures help you meet your bottom line goals.

The administrative costs associated with owning a fleet of trucks are significant. These include attending to breakdowns, analysis of repairs, monitoring of invoices, implementing a PM program, specification of equipment, obtaining licenses and permits, and the reporting of fuel tax.

Government regulations on operating leased trucks are both increasing and continually changing. Compliance with federal, state, and county operational constraints regarding fuel, emissions, environmental impact, and maintenance of leased vehicles requires extensive tracking and record-keeping — time that could be better spent on developing your core business.

box truck Leasing makes the most cost-effective use of downtime. When leased trucks are not in use, they are serviced by certified mechanics performing 142-point inspections. This level of maintenance fixes parts before they break. Leasing premium equipment with matched components also minimizes downtime.

Tax impact. Leasing vehicles can be fully tax deductible; the depreciation of purchased trucks may actually increase your exposure to the Alternative Minimum Tax.



Click here for a Lease Versus Buy Comparison

 
 





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