Are you interested in lease to own or lease to purchase trucking for your business? Need some guidance on what to consider before making your decision?
If you want to learn more about lease-to-own trucks, then you’re in the right place. There are a few important factors you need to take into account when it comes to this topic.
And we will be covering them in this article with 5 tips for choosing lease to purchase or lease to own trucks.
1. Understand the Lease Contract – Lease to Own Trucks
With lease purchases, you enter into a deal with the prospective trucking service that is agreed upon via a contract. Once you’re enrolled in the program, you’re seen as an independent owner-operator.
At this point, the local trucking company will place certain rules and regulations within the contract that must be adhered to.
Some rules may include:
- A certain amount for a down payment
- Credit requirements
- A guarantee in place before you lease a truck
Additionally, there are also financing options available with most trucking services. This will typically be included in the contract as well.
2. Research the Companies
Take some time to investigate the company you’re considering leasing from. Freight companies will vary in every category; service, quality, price, etc. So you have to put in the time to find a company that best suits your needs.
Furthermore, by doing your own research, you can avoid underperforming freight companies and save a lot of time, money, and frustration — all by doing a little homework upfront. It’s a small price to pay.
3. Converse With Independent Truckers
Prior to leasing any freight truck, try to consult with other truckers who have (or still are) leasing, if possible. This will help you gain clarity into what the best flatbed truck companies are.
What better way to gain intel on a company than to speak with previous customers.
4. Consider Tax and Insurance
When it comes to trucking companies, it’s always a good idea to look into and understand the tax and insurance implications. Factor in the costs so that they can be added to your budget.
This means putting a little money aside for taxes from the income you acquire, as well as paying for insurance in the case of an unexpected event.
5. Assess the Profitability
The primary reason for leasing a semi-truck is for financial gains. You want to expand and accumulate more wealth, that’s the objective of every business.
Therefore, it would be prudent of you to evaluate the risks and rewards involved, financially speaking.
Tabulate the numbers to see how much you stand to gain and what the expenses will be. If it’s clear that this is a profitable endeavor — then go for it.
The Concept of Lease to Own Trucks
As with anything in life, you shouldn’t invest in it unless you understand it. And this concept certainly applies to lease-to-own trucks as well.
But by gaining the right education, you’ll be in a good position to make a sound choice.
If you’re interested in learning more about our “lease to own” and “lease to purchase” programs, as well as our driver bonuses, get in touch with us today.