Most people take great pride in ownership and owning a fleet is no different. After all, purchasing a truck can help build credit, qualify you for tax advantages, and at the end of the term, the truck is yours outright. But what about the other factors involved, such as the upfront down payment costs, ongoing maintenance and repair, and the hassle of permitting and licensing? For instance, a 10% down payment is typically required to purchase a new truck, and often higher for a used rig. That means your business capital can be quickly depleted. Additionally, most truck loans require a 3 to 5-year commitment, regardless of profit margins.

On the other hand, when you choose the leasing route, not only are there fewer upfront costs, but monthly expenses are often lower too. In fact, with most lease agreements, maintenance costs are covered, and services typically include 24/7 roadside assistance. While lease terms may also consist of a 3 to 5-year term, there may be options to stop the lease early with a penalty fee, or at the end you’ll have the option to purchase the truck at a reasonable price or upgrade to a newer model.

Whether you currently own your trucks and are looking to expand or considering trade-ins for newer models, leasing gives you more flexibility and frees up your capital for use in other areas of your business. Here are a few key reasons as to why leasing is a great option.

#1 Avoid Rapid Depreciation

The minute you drive off the lot in a purchased new or used vehicle, depreciation begins. With leasing, depreciation isn’t a factor, nor does it impact your company’s net worth.

#2 Budget Friendly

A major advantage to leasing a commercial truck is that you avoid a large investment. Also, unlike owning a vehicle, leasing doesn’t incur hidden expenses like sales tax, finance charges, overhead, towing, and so on. Leasing a truck involves lower monthly payments which can boost your profit margin. Additionally, there is much less paperwork involved.

#3 Flexibility

Most leases require little or no down payment, and flexible terms are usually available, as well. Once the lease has ended, you simply return the vehicle, opt to purchase it, or upgrade to a newer model. Further, throughout the life of the lease agreement, your monthly payments are fixed, giving more financial flexibility.

#4 Around-The-Clock Emergency Roadside Assistance

Even the newest vehicles can have problems that leave you stranded on the side of the road or create downtime for your business. With a full-service lease agreement, you can opt for 24/7 roadside assistance and with access to a substitute vehicle, you avoid losing business during repairs.

#5 Unexpected Costs and Fees Are Eliminated

Staying in compliance with licensing, taxes, and permitting can be time-consuming and stressful. Whether you’re taking care of the details yourself or task the responsibility to an employee, it costs you money. Then if something is missed, you’ll likely incur additional fees and penalties. With a lease, these details are handled for you, worry- and hassle-free.

#6 Access to Newest Technology

Driver comfort and safety technology are always improving, but advancements could result in your trucks becoming outdated much sooner than you think. This is unavoidable when you buy vehicles, but a lease often gives you the option to upgrade before the lease period is up. This not only ensures your drivers are in the most efficient trucks, but it also ensures the latest safety and comfort features, which shows how much you care about your employees.

#7 Time to Focus on Business Growth

Buying, selling, and maintaining equipment takes time. For all of the above reasons, choosing to lease your truck will give you more financial flexibility as well as free up time for you to focus on your core business.

Interested in Exploring Your Leasing Options?

Leasing can be a profitable option, but you need to make sure you’re leasing from a reliable company. At Suppose U Drive, our family values have prevailed through decades of expansion, and we have remained a family-owned operation since our doors opened in 1936.

With a large fleet and customer-focused service, we continue to surpass larger competitors while still providing the options, availability, and hands-on support you expect. So, if you’re interested in exploring your leasing options or discussing a short-term rental, we’d love to help! Click here for more information, or call our team today at 800.404-8800 to learn more.