When you’re a small fleet owner or want to be an owner-operator, you should look at all sides before you decide to buy rather than lease a semi-truck.
Maybe you’re a recent trucking school graduate, and you want to own your truck rather than commit to a trucking firm. You will have more independence, and as a new truck driver, you could have more financial and personal freedom as an owner-operator.
However, buying a truck is not always an option for the recent graduate because they’ve been unemployed for a while, have less than perfect credit or both. Either of those could keep you from getting a loan to buy a truck, which typically costs double or triple a new car.
Do not let bad credit keep you out of the driver’s seat as an owner-operator. After looking over these advantages and drawbacks, talk to the friendly Bulldog Truck Sales professionals.
#1 Pro or Advantage — You Don’t Need Great Credit
As stated above, unemployed and owner-operators with bad credit usually can’t get a bank loan for a semi-truck. When you lease a previously owned semi from Bulldog, you have more options and a truck with a warranty.
#1 Con or Drawback — The Lease Framework Could Be Complicated
Be careful that you read the contract carefully and understand everything before signing. If you don’t understand anything, it could be worth it to hire a lawyer to read and explain how it works and if everything is legal.
It would be best if you were particularly careful when you lease-to-own from your trucking firm.
#2 Pro — You Will Eventually Own the Truck, Not Owned by the Trucking Firm
If you plan it right, make your payments on time and save whatever the cash-out will be at the end of the lease payment term, you can own the truck.
#2 Con — You Don’t Own the Truck Until It Is Paid
To many, that is only a technicality, but if you want to modify the engine or sleeper, you must have approval from the business leasing it to you or specified in the contract.
Once again, be sure to plan for the end of the lease so that you can buy it, renew the lease or lease another, though that might require another down payment.
#3 Pro — Reduced Maintenance Costs
Since your leased semi-truck has a warranty and usually some maintenance built into the lease, it could be cheaper.
#3 Con — Not All Built-In Maintenance Is Convenient
Just because the warranty or lease has an “escrow account” for maintenance, you might have to use a specific fleet repair company to take advantage of it. Another consideration might be a minimum expense to draw from the escrow account. If the minimum is $500 and the repair cost is $450, you might have to pay out-of-pocket.
Final Thoughts about Leasing
All things considered, if you plan it well, understand the lease, warranty and escrow account limits, leasing a truck from Bulldog Truck Sales could make you a proud, independent trucker in an excellent truck. Call Bulldog Truck Sales today to learn more.
Posted on behalf of Bulldog Truck Sales