Leasing a Truck for Your Business 101
When starting, many small business owners reach the point where they need to consider adding to or creating a fleet of vehicles.
Should you buy it? Alternatively, should you lease? Which is better? Both have their advantages and disadvantages.
The most significant advantage for business owners is the associated tax advantage with leasing a vehicle. It is also a more cost-effective option than purchasing a new truck.
Why Should You Lease Your Next Truck?
Purchasing a business vehicle provides you with full ownership. However, leasing a business truck also has many other benefits outside the known tax advantages:
- You don’t need to outlay large amounts of money upfront
- Low monthly payments
- Lease payments are tax-deductible
- Stay up-to-date with the latest models and technology. Plus – newer vehicles mean better fuel economy
- Short- and long-term agreements. Only pay for a truck when you need one
- No maintenance costs
- When the contract period comes to an end, you don’t need to worry about depreciation or selling the vehicle
Before you sign an agreement, determine the length of time, you will require the vehicle and research the best model for your needs. Your research will ensure you’re not paying for more than you need.
Peruse the contract carefully. Ensure your responsibilities as the lessee are understood. Have a clear comprehension of the obligations of the leasing company.
If you’re unsure about anything, don’t be afraid to ask questions.
The Term of the Lease
If you require a truck on a long-term basis, it makes sense that a long-term lease would be more appropriate. Carriers generally offer a rental between one and four years.
Once that term has expired, you have the option to renew the lease agreement or move on. You may also have the opportunity to purchase the truck. The payments you’ve already made will be deducted from the purchase price.
Your Budget
You will be making a down payment, as well as a monthly fee to a carrier to drive the truck. The carrier should advise the cost of the monthly payments, upfront at Suppose U Drivewe scale expenses to fit your budget. We take into consideration the type of vehicle you’re looking for and how much you’re prepared to spend per month. We will help to accommodate your business’ growing needs while staying within your budget.
Type of Truck
Consider the type, size, and age of the truck you’re looking at leasing. An older vehicle will require more maintenance. If your goal at the end of the lease is to purchase the truck, you don’t want to be stuck with one that is difficult to maintain and upgrade.
At Suppose U Drive our fully maintained rental fleet includes box trucks, stake bodies, vans, studio trucks, and tractor-trailer combinations of all weight classes.
Insurance
Collision coverage is usually required by leasing companies. Insurance will cover you for damaged incurred as a result of a collision by another object or vehicle.
Mileage
In your contract, you will agree upon an estimated number of miles you’ll expect to travel in your day-to-day operations. Make sure you allow for special events or other non-work-related travel. You may be required to pay additional fees for extra mileage incurred.
Wear and Tear
The damage policy in the contract will state what normal wear and tear of the vehicle is expected and what may be considered damage. Unacceptable damage may include damage to the structural integrity of the vehicle, excessive scrapes to the paintwork, tears in the seats or dents in the bodywork.
Maintenance
Maintenance can be one of the most expensive aspects of vehicle ownership. However, when leasing a vehicle, you don’t need to be concerned about upkeep. At Suppose U Drive maintenance plans are included in your lease agreement. This maintenance plan ensures your trucks are out on the road, not awaiting repairs in the shop.
Our maintenance services include:
- Scheduled preventive & non-scheduled maintenance service
- Parts & labor
- Oil & lubricants
- Tires
Accessible Service Centers
It happens. Vehicles can break down. Before signing a lease agreement, determine how quickly the carrier can address the problem and where the service centers are located.
At Suppose U Drive, we take the safety of our customers very seriously. That’s why we regularly subject our trucks to a rigorous 142-point inspection. In the unlikely event that something does go wrong, we offer 24/7 roadside assistance (including tires). If we can’t fix the problem right away, we’ll provide you with a replacement truck at no extra cost to get you back on the road.
Cancellation Policy
You never know when an economic downturn may occur, or you might face financial hardship. Check your contract’s cancellation policy for any penalties you may incur if you need to break the lease. If you have a flexible agreement with the carrier, this can help reduce any financial risk to your business.
How Can I Compare Lease Agreements?
Look for:
- Up-front payments required
- The vehicle cost used to calculate the lease
- Lease end fees, including any excess mile’s charges, incurred
- Mileage allowance
- Purchase options at the end of the contract
There are many leasing companies on the market. How to choose the one that suits you best? Before you jump back down the Google search rabbit hole, look for a local company with an outstanding reputation, gives back to their community, and makes customer satisfaction their number one priority.
Get More Information
Suppose U Drive is a family-owned and operated company. We’ve been proudly serving our community for over 80 years. Our professional and friendly staff have been trained extensively to help you to the best of their ability. We maintain the highest possible standards to ensure maximum customer safety and satisfaction.
Drop into one of our three locations at Glendale, Norwalk or Ontario in Southern California to speak with our trained professionals.
Alternatively, please phone or email us today for any questions about leasing a truck for your business. Suppose U Drive negotiates all leases to fit the size of your business!