When you get your CDL, you need to decide whether you want to go to work for a commercial trucking company or if you want to work for yourself. If you're interested in working for yourself, the first thing you will need to do is secure a truck that you can use. This means deciding if you want to purchase or lease the truck. It is a pretty big decision, and it is one you should approach carefully. Here are some of the reasons why you should consider leasing that first truck.
1. Leasing Costs You Less
For someone who is just getting started in the industry, you must be aware of the costs involved in the startup process. The truck is arguably the most expensive part of getting started. If you buy the truck, you'll be facing a significant down payment and likely a higher interest rate. With a lease, there's often no down payment at all, and your interest rate is usually lower because lessors take less of a risk than those financing an outright purchase.
2. It's Easier to Budget
Leasing a truck makes it much easier to budget your costs than buying one does. That's because your lease payment will be fixed, which your purchase payment may not be if you get a variable rate. In addition, you won't be taking financial responsibility for the maintenance and repair costs if something breaks on a leased truck. The lessor typically pays for maintenance and major repairs, unless those repairs are the result of negligence on your part. This makes it much easier to predict your costs, which is important for those who are just starting in the trucking industry and don't have a solid book of business yet.
3. It Offers More Flexibility
When you lease a truck, you will use and pay for that specific truck for the lease period. After the lease period, you can decide if you want to pay the buyout and own the truck or turn it in and replace it with a newer model. This means you have more flexibility to use a new model truck for many years without having to buy each of those trucks and taking the risk of selling them after the fact. For a newer business, this strategy could have long-term benefits.
Talk with a local semi-trailer leasing company near you today for more information and to get the truck you want.