Why lease my next work truck
Why lease my next work truck
Lease or buy? It is one of the most fundamental questions a fleet manager must answer. And, because nothing in business is carved in stone, it is a question that will have to be answered many times over the course of a career. Many fleet managers have a preference when it comes to acquiring new vehicles. But, ever-changing financial options and business demands can often mean new opportunities and new doubts. Because no matter what path you choose to acquire new vehicles, there is always a nagging doubt in the back of your mind, wondering if you made the right choice, or could have cut a better deal. If you are wondering if you should lease your next work truck and you are looking for more information on the matter, then you have come to the right place. At Pfaff Leasing, we can get you set up with a fleet of work trucks or an individual work truck for your business. Are you a contractor or operate a snowplow business? We can have your truck outfitted with the right equipment to get the job done. In this blog, we talk about some of the factors that go into choosing to lease your next work vehicle.
The Down Payment
When you decide to buy or lease a car, a down-payment is usually required. If you only have a small down payment saved up, leasing may be the better option. Otherwise, you will need to get a loan to finance a vehicle purchase. The value of the loan is based on the total cost of the vehicle, minus the down payment and trade-in value. When you rent, you’re only paying the depreciation that occurs during the lease term (typically three years), plus fees. At the end of the lease term, you simply return the car to the dealership.
The Maintenance Costs
As a car or truck ages, it will show signs of wear and tear. If you are leasing, you do not need to worry about long term maintenance costs. You simply turn in the old vehicle and start a lease on a newer model. You also have the option to choose the make and model you prefer depending on your needs. As a business owner, not having to worry about maintenance costs with your fleet is a huge benefit. Just one more thing taken off your plate so that you can deal with other more pressing matters.
Off-Balance Sheet Financing
If you are planning on getting other loans, then leasing a car gives you a form of “off-balance-sheet” financing which may not add to your borrowing ceiling for other loan qualifications. You should be aware however that leasing has its limitations. For example, you do not own the car if it is leased, so you are not acquiring an asset.
Choosing to lease your next work truck is solely up to you and how it fits into your business strategy. If you are still looking for more information about work truck leasing, we encourage you to get in touch with a Pfaff Leasing representative so that we can coach you through the process.