2013 Trucking Guide – How to Lease a Good Truck
Leasing a rental truck gives small business owners and entrepreneurs a way to get the equipment that they need without having to tie up cash on large capital equipment expenditures. Whether the truck that he needs is a delivery van, a pickup truck, a cutaway or a tractor, drivers can conserve cash, maintain their competitive edge, and accurately budget their expenses if they enter into an agreement with a reputable truck leasing vendor. Truck lease agreements typically include maintenance agreements, emergency roadside services, insurance, and other options such as discounts on fueling.
In certain cases, leasing a truck is an attractive alternative to purchasing a truck outright. Leasing a truck also requires a much lower upfront investment, allowing leasers to turn the truck in for a brand new model after three to five years. Given that trucks are always used for these heavy-duty jobs, such as construction, having the ability to trade a truck in after a significant use is always a good and valuable option. Leasers can simply pay for the use of the truck, and won’t assume ownership of the vehicle, unless the vehicle is purchased from the leasing company once the lease is done. Leasing a truck may seem complex, but it is much easier when the driver is familiar with the concept.
The driver should also decide what type of truck he needs, based on how it will be used. A lot of truck dealers will try to convince the driver to lease a fully loaded truck, with lots of different features. He should shop only for a truck he will use. He should also consider whether he will use the truck for personal reasons, or for work and what kinds of jobs he will compete with the truck. It also helps if he researches more about market values of trucks that he wants to lease.
Drivers should also assess the company’s trucking needs. He should know the number of trucks his business needs, as well as the model and features he requires, and also how much he can afford to spend.
Drivers need to contact a tax accountant or an attorney in order to discuss the tax implications for business if he leases trucks. For example, he may be allowed to deduct the lease payments from his taxes, while payments made for the trucks that were purchased aren’t always that deductible.
Truck drivers should get customer references from the truck leasing agencies that offer the best equipment and financing. They should also give them a call or visit them, in order to learn what their experience with the agency has been. The drivers should also ask the vendor to provide a copy of the filled-in lease agreement form, so that they can review it with their accountants and attorneys before they sign an agreement.
Once the agreement has been signed and dated, the driver should then hand it over to the leasing agent with any required security deposit or collateral statement; he should as well as keep a copy of the signed agreement for the driver’s company records.