Should a contractor lease a work truck
When it comes time for businesses to get a work truck some companies purchase used. Most decision-makers see the used truck as a more affordable option, and at face value, they may be correct! So why are more and more contractors turning to lease work trucks for their business? At Pfaff Leasing, we can get you set up with a fleet of work trucks or individual work trucks for your business needs. Does your truck need to be outfitted with a plow? We can get that done for you as well. Contractors can benefit greatly from choosing Pfaff Leasing to lease a vehicle. In this blog, we talk about some of the reasons why contractors should lease their work trucks.
Account for depreciation
Whether you buy a new or used work truck one thing remains constant: the second it leaves the lot it depreciates exponentially. A new truck becomes a used truck, and a used truck gains another owner. The initial depreciation of buying a work truck is one of the single largest expenses a fleet manager must anticipate. Vehicles acquired through the fleet organizations are typically purchased at a better price which reduces depreciation expense. By leasing a work truck, businesses reduce the depreciation loss caused by overpaying for new or used vehicles from the dealership lot.
A newer work truck is cheaper to run
A new leased work truck is cheaper to run than a used work truck from your local dealer; even if you ignore fuel expenses. Used work trucks were most likely driven hard. Parts are starting to wear and need to be replaced. Those repairs start to get expensive and add up over time. What’s worse is they come out of your own pocket. The average 4-year-old vehicle with 100,000 kilometers will cost you $800-$1,200 in additional maintenance annually over a new vehicle. On the off chance, your brand new truck needs a repair it is likely covered under warranty.
Leased work trucks have less wear and tear
One of the most common arguments and misconceptions regarding leasing a work truck is “Well the truck is going to get beat up anyway.” It’s true. Work trucks see more abuse and wear than other vehicles. When decision-makers think of how beat up their work trucks are they typically think of the 8-12-year-old model they purchased 4 years ago with two or more owners and a decade of wear and tear. Leased work trucks see less abuse and hold their value when businesses operate them for a shorter amount of time.
As a contractor, or any self-employed individual needing a work truck, it is essential to take the above-mentioned factors into account. If you are still wondering if you should lease your next work truck, then we suggest getting in touch with a Pfaff Leasing individual.