Common costs involved with commercial truck leasing

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Common costs involved with commercial truck leasing

To buy or to lease? That is the question. Each business owner and manager is responsible for making the smart financial decisions necessary to keep the business thriving. Whether you’re establishing your first business fleet or building out an existing fleet, there is a single very important question to ask yourself.  Is it better to buy your trucks and slowly pay off the loans or to lease them as-needed with the added benefits of maintenance and fleet management services? For most businesses, the decision comes down to cost. You know the costs of buying a vehicle. But what are the costs associated with leasing a commercial truck or fleet of work trucks? If you are looking for the answers to these very important business questions, then you have come to the right place at Pfaff Leasing. Many advantages can be realized with commercial truck leasing, and with our experts on your side, you can have confidence that your business equipment needs are being handled by the professionals! In this blog, we share some information about some of the common costs that go along with commercial truck leasing. 

Click here to get in touch with our commercial leasing representatives at Pfaff Leasing. 

What is the cost to lease a commercial truck?

Leasing is often chosen by businesses looking to put a commercial truck or fleet into use while keeping monthly overhead low. In most cases, the monthly cost of a lease is significantly less than what you would pay in loan installments after buying a vehicle outright. However, the exact cost of commercial truck leasing will depend on the size, model, and age of the truck you’re looking to lease, along with any added features or services included in the leasing contract. It is important to get in touch with your Pfaff Leasing representative so they can discuss with you about your need for commercial trucks. Our Pfaff Leasing agents understand that no two businesses are the same, and each one will need different equipment and a different number of vehicles. We listen, we share our opinions, and we come up with a plan for our valued clients.

What about commercial vehicle insurance?

As any savvy business owner knows, the cost of the lease contract is only the beginning of your calculations. For each vehicle you choose to lease, there are several smaller additional costs and among the most important is insurance. Commercial vehicle insurance is different from personal auto-insurance because you must cover driver and business liability with somewhat different coverages. Commercial vehicle insurance covers a wider variety of vehicles, offers higher liability limits, and there is (usually) no limit on the number of vehicles that can be added to your plan. Yet another advantage of leasing commercial trucks with Pfaff Leasing, we can get you set up with your commercial vehicle insurance through our vast network of connections!

What about fuel and routine maintenance?

The next aspect of your leaded commercial truck expenses will be fuel and routine maintenance. Again, responsibilities and costs you would need to handle with or without a lease, so include these numbers in both halves of your comparative calculation. You can roughly estimate the amount you’ll need to spend on fuel each month with a quick equation. Start by dividing your average number of kilometers in a daily route, then divide that by the truck’s gas mileage. Multiply the result by the local gas price per litre, and you’ve got something resembling your potential monthly gas costs.

Are there any tax benefits of commercial truck leasing?

Finally, there are taxes to consider. When you purchase a commercial truck, you may deduct the interest of the loan. With leasing, however, you can deduct the entire cost of each leased month from your business taxes and use this to lower your overall tax burden. Vehicle leasing is considered a deductible business operating expense and therefore is a legitimate addition to your business tax deductions. In this way, commercial truck leasing can save you a bundle on monthly expenses.

These are just a few of the common costs involved with commercial truck leasing. If you are still looking for information about commercial truck leasing, then we encourage you to continue browsing through our Pfaff Leasing website or get in touch with a representative. 

Click here to find our contact information or to speak with a Pfaff Leasing representative.