Need a truck for your personal or business use? Not sure if buying or leasing is the best choice for you? To make sure you make the right decision between buying or leasing, there are so many factors you need to consider including:
- Upfront Costs
- Ongoing Costs
- Asset Control
- Hidden Costs
- Technology Advancements
Pros and Cons of Buying Trucks
Buying means you pay all the money upfront when purchasing a truck. If you own a supply chain or logistics business, owing a commercial fleet of trucks makes sense. Having your own trucks provide a better sense of control and you can use them as collateral to improve the value of your company.
Compared to leasing that comes with a fixed fee, buying often comes with hidden costs that may be higher, including:
- Tax and Licensing Fees
- Replacement Parts
- Safety Violation Fines
- Ongoing Repair Costs
- Maintenance Work Costs
Pros and Cons of Leasing Trucks
When you lease a truck, you can start using it without having to pay high upfront costs or the credit constraints associated with ownership. Also, having to pay a lesser amount allows you to save money you can use elsewhere in your business. Some of the other benefits of truck leasing include:
- Removes Hidden Costs
- Avoids Asset Depreciation
- Keeps Up With Newest Technology
Along with some benefits, leasing comes with a few drawbacks too. In most cases, leasing does come with some terms and conditions that may restrict you from using the truck as per your convenience. Also, breaking any of these terms may result in hefty fines.
Conclusion
Both buying and leasing are perfect depending on your unique scenario. If you are still struggling to decide which one will work the best for you, feel free to contact our leasing specialists at Sandhu & Sran Leasing & Financing and get a plethora of leasing and financing options to choose from.
