By Nick Corona
Allstate Peterbilt Group
The transportation of products and services is a central component to the way we all live. Whether that is a load of building materials, some fresh fruit or your weekly garbage pickup, we all rely on the transportation industry to keep the world moving. While each purchase or lease decision is company specific, many sectors of the transportation industry can and do benefit from leasing trucks. Those reasons include; controlling maintenance costs, freeing up capital for other expenses and providing reassurance to focus on a core business. Not to mention, leasing a truck is a great way to guarantee you’re always operating new model equipment without the investment of purchasing. In most cases, you can even customize the truck to meet your specific business needs.
Predictable Maintenance Costs
Operating a full-service maintenance shop can create a large overhead strain for your company—especially with the highly technical nature of today’s trucks. The continued addition of electronic components paired with constantly evolving emissions mandates, means even the day-to-day maintenance of your fleet can become complex. The idea of a traditional diesel mechanic is a thing of the past, now heavy-duty truck technicians need to be skilled with both a tool box and a laptop (full of specialty tools and diagnostic equipment). As the OEMs continue their push for proprietary components including engines, transmissions and after-treatment systems, operating new equipment means that many preventative and repair services must be completed by a factory-certified technician. In a traditional truck purchase, the owner has to take on the hassle of keeping tooling current, managing dozens of parts vendors, recruiting technicians and making sure equipment is up-to-date with all regulations and licensing. Leasing may be a better alternative for many. A dedicated leasing account representative will handle these difficult and time-consuming tasks all while allowing you and your team to focus on your business.
Even if purchasing a truck is the right decision for your business, you still have the option to purchase a maintenance contract for equipment that is not leased. This could include preventative maintenance, oil changes, DOT inspections, etc. Keep in mind that full-service and contract maintenance is usually not included with Fair Market Value or TRAC leases—but leasing companies can offer these options to you.
Consistent Financial Commitments
Cash is still king! Not only does leasing help free up capital to be used on your core business, it also requires no down payment. The process is roughly the same as applying for a loan, including a full credit check, but many contracts require little to no money up front and you get immediate use of the truck. The terms of a lease allow for a fixed payment that mirror’s the useful life of the truck allowing you to budget and forecast more accurately. There are also many current and potential tax rule changes that allow lessees to report these trucks as both an asset and liability (previously leases were seen solely as a liability).
And don’t forget, you’ll have no unexpected maintenance or repair costs when choosing a full-service lease!
Focus on Core Business
The decision making process before a truck is purchased can be complicated and time consuming. It is likely to include researching truck and service providers, negotiating, licensing, reporting and inspections just to name a few. When you choose to lease a truck instead of purchase, your leasing account manager will ensure all of those responsibilities are taken care of for you. The leasing company will make sure trucks are DOT compliant, up-to-date on preventative maintenance, licenses are renewed and maintenance records are current… And best of all, it’s all included in the cost of the lease! When your lease is up, you don’t have to worry about the burden of disposing the truck at the end of its useful life. You simply drop it off, pick up your newly leased equipment and get back on the road.
Outsourcing the ownership of the truck and service costs and responsibilities is undoubtedly one of the most efficient ways to minimize your operating costs and maximize the time available to focus on your business.
Truck leasing simplifies the ownership process allowing you to have the proper equipment to meet your current business needs without the risk of uncertainty from current markets and customer commitments.
Learn more about our truck leasing options.
By Nick Corona