Did you know that the trucking industry in the United States is responsible for transporting 70% of all goods in the country? Many want to become truck drivers to work for one of the largest revenue streams in America.
If you’re a truck driver, trucking company, or plan to become one, you need some equipment. A semi-truck is one of the major pieces of equipment to have, but should you lease or own it?
Read on to learn if it’s better to lease or buy a semi-truck.
Benefits of Owning a Semi-Truck
Knowing how to buy a semi-truck involves taking a deep look at your needs. The major benefit of owning a semi is that after you finish paying it off over time, it is completely yours.
If you choose to finance a semi-truck instead of paying for it outright, you’ll build equity with each monthly payment. However, there are still benefits to purchasing it without a financing plan. You won’t have to keep up with payments.
If you no longer want the truck or need an upgrade, you can sell it or trade it in to make some of your money back.
If you have a truck transport company, owning a semi-truck can save you money in the long run. Even though you have to keep up with the cost of maintenance, it might be cheaper than a lease over time.
Buying New or Used
If you’re buying a semi-truck for business, you have options to choose from. Many make the mistake of only focusing on new trucks when perfectly good used ones are available.
No matter which option you choose, you’ll need to have enough money to make a downpayment if you opt for financing or to pay the truck off in full. Similar to buying other vehicles, the better your credit, the better deal you will get.
If you have poor credit, leasing a truck might be the better method for you.
Benefits of Leasing a Semi-Truck
If you’re looking to buy a semi-truck every few years, leasing is probably the best option. There is a chance that you can purchase the truck at the end of the lease.
Choosing a lease-to-own plan is beneficial for many truckers, but you have to have the money available to do this. If not, you can trade-in your old lease for a new one when the time comes.
Unlike buying a truck, you can save money on maintaining the vehicle if the lease agreement states that you’ll have assistance. Along with this benefit, these are the others that might catch your eye:
- Lower monthly payments
- Lower down payment
- Tax benefits
Be sure to read the details of a lease agreement thoroughly as there might be requirements you have to meet.
Should You Lease or Buy a Semi-Truck?
There are benefits to both buying and leasing a semi-truck. It’s up to you to decide which perks matter most.
If you plan to stay in the trucking industry for years to come and have the ability to pay outright or finance a monthly plan, you can buy a semi-truck. If you have poor credit and are looking for more affordable monthly payments, leasing is the way to go.
Before you choose, look into all of the options and consider this guide. Check out the other posts on our blog for more tips.