If you are in the trucking business, you may be looking to expand your operations and productivity by adding a new truck to your inventory. Rather than buying a truck that may not be feasible for your financial condition, leasing is the best choice.
Before you decide to opt for truck leasing, you must be aware of its benefits and drawbacks. Leasing a truck can vary depending on your demands and situation. If you want to upgrade your truck model every few years without having to worry about selling or trading it in, or if you need a dependable truck or trailer for a short while, leasing a truck can be an excellent choice. In case, you are financially sound, you can even opt to apply truck loans in Abbotsford.
Pros Of Leasing A Truck
- Reduced monthly payments: Leasing a truck might help you manage your financial flow because the monthly payments are typically lower than buying it outright.
- No up-front expenses: Since leasing a truck usually doesn’t demand a sizable down payment, you can get your hands on a new truck without having to shell out a sizable sum of money upfront.
- Reduced maintenance costs: Since the majority of leasing options include a manufacturer’s guarantee, you won’t be accountable for major repairs that are covered by the warranty, thus your maintenance expenditures will probably be lower.
- Upgrade options: If you lease a truck for a little time, you have the option to swap it in for a newer model at the end of the lease, giving you access to the newest features and technology.
- Tax benefits and rebates: If you use the truck for business, you could be able to write off the leasing payments, which would lower your tax obligation and save you the dollars you usually paid in taxes.
Cons Of Leasing A Truck
- Mileage restrictions: The majority of truck leasing deals come with mileage restrictions, which may be troublesome if you need to drive a lot of miles annually. If you surpass the mileage restricted in your leasing offer, you’ll be required to pay extra costs.
- Lack of equity: When you lease a truck instead of buying, you don’t accumulate any equity. This means when the leasing deal expires, you won’t have anything to trade in or sell.
- Early termination costs: Since every leasing deal comes with an end period, you’ll need to pay a penalty if that period recedes or exceeds. If you need to end the lease agreement early for whatever reason, you are required to pay costly early termination fees associated with it.
- Limitations on modifications: Making any modifications to a leased truck is not possible. By leasing, you need to agree that you won’t make any changes to the truck and return it in the same condition it was leased to you.
- Credit requirements: Credit score plays a crucial role in getting your leasing request accepted. You may not be able to lease a truck or may have to pay higher interest rates if your credit score is low. Leasing a truck requires a good credit score and a strong credit history.
Conclusion
Leasing a truck is a wise choice if you want to keep your monthly payments low or if you need a dependable truck for a small amount of time. At Sandhu & Sran Leasing & Financing, we specialize in truck loans, equipment financing, commercial leasing, and machinery loans in Abbotsford. Get your choice of truck or heavy equipment leased from us.
