If you are keen on starting a trucking business, then you need to ensure that you have available vehicles and drivers to start your venture. However, the common challenge in setting up a new business venture is the limited capital that most startups struggle with. This is where leasing can prove to be a more viable option for you if you want to push through with a trucking business even with limited working capital.
Leasing Considerations
- Financing Options
To know when it makes sense to lease a truck for your business, you need to consider a number of factors. For instance, you may want to look into the financing options available for you when it comes to both buying a truck or leasing one. In this case, you can also consider exploring brand new or used semi tippers for sale before you look into those that are for lease for you to have a good idea of the price difference of each. From there, you will be able to assess the amount of money that you need to borrow or spend on the truck.
- Length of Usage
More often than not, it is better for you to buy a truck when you see yourself driving the truck that you have bought for many years to come. However, if you are unsure whether you will still be driving your commercial truck after two or three years, then it is better for you to lease on instead. For this reason, the length of usage that you envision is also a considerable factor that can affect your decision to lease a big rig. Just keep in mind that apart from the length of usage though, you also need to think about the number of miles that your truck will most likely run because there may be additional fees when a certain mileage is exceeded.
- Business Model
Another factor that you need to consider when it comes to deciding whether to lease a truck for your business or otherwise is your business model. For instance, if you have a seasonal business, wherein you will not be able to fully utilise your truck throughout the entire year, then it makes more sense for you to lease a big rig rather than to buy one. However, if your business model entails the need for maximum truck utilisation regardless of the time of the year, then leasing may not be the best option.
Leasing or Renting
Usually, the choice falls between buying or leasing. However, you should not confuse leasing with renting because there are significant differences between the two, even if both are taking out a vehicle and paying for it for a certain time frame. Leasing is commonly longer while renting involves taking out a truck for only a few days or even up to a couple of weeks.
Aside from the time frame, another notable difference is that leased trucks usually come from auto dealerships or fleet leasing companies while rented trucks are managed by rental agencies. Finally, there is an option for you to own a leased truck after the leased time agreement has lapsed. Most leasing companies provide this option, which is not readily available in trucks that are being rented out.
Final Word
Leasing a truck proves to be a viable option in many circumstances. However, you need to consider various factors to ensure that this is the best option there is for your business. For this, think about your financing options, as well as the length of time you intend to use the truck. You should also look into your business model because all these will determine whether it is time for you to lease a truck for your business.
