Commercial Trucks: Leasing vs Buying

Trucking is the backbone of many industries, and adding a commercial truck to your fleet or just getting one for yourself can open a lot of doors. But then you have to ponder the age-old question: do I want to lease or buy? We here at McCandless Truck Center know that can be a tough decision to make, so we’ve put together some information about both to hopefully give you a head start. To learn more, or to see the commercial trucks we have for sale, contact our stores across Colorado and Wyoming, today!

Leasing

There are two main types of leases: open- and close-ended. Open-ended leases have a minimum leasing term and have additional month-to-month options after the term is up. Close-ended leases have a fixed term and monthly payments. In either one, damage or exceeding mileage limits can lead to extra fees. 

Benefits-wise, leases tend to be extremely financially efficient. They tend to have lower monthly payments than you’d make when financing a purchase, providing instant savings. That means a newer vehicle or set of vehicles for a lower price. It’s also cheaper to repair and fuel up leased trucks, since they tend to be newer and utilize the latest technologies and fuel-efficient systems. 

A leased commercial truck can also be replaced more frequently than one you’ve purchased, so as new tech comes out you get instant access to it. For fleet managers, leased vehicles also tend to mean less paperwork and administrative headaches, since you don’t own the trucks.

Buying

The primary benefits to owning the commercial truck yourself is increased control and the lack of limitations. You don’t have to answer to anyone else about the wear and tear or mileage. The extra responsibility also means an increase in flexibility, which more than outweighs the extra work. You can also drop a truck whenever you think it’s done being useful rather than waiting for the lease term to end. 

There are a few financial benefits here, too. Repeat business, referrals, and other contextual connections can help you negotiate for better deals and prices in the future. A small-to-medium sized fleet buying vehicles from national fleet dealers might also get enterprise-sized fleet pricing. Some tax benefits also come with the package, including the depreciation benefit from your vehicle’s eventual value reduction. 

Finally, buying the commercial truck yourself helps build equity that you can recoup in a later sale or by increasing a company’s overall worth through its assets. That equity can be reinvested into your company, which can’t be done with a lease.

We hope this information helps you decide which is best for you! For more information, or to see the commercial trucks we have in stock, contact us at McCandless Truck Center. We proudly serve the people of the great states of Colorado and Wyoming—let us serve you today!