Lease vs Buying a Semi-Truck
Semi-truck leasing is a popular alternative to purchasing a semi-truck, financed or otherwise. In this article, we will discuss the benefits of a semi-truck leasing, and why it is such a popular option.
How much does it cost to lease a semi-truck?
While purchasing a truck has a general range of prices, the cost of leasing a semi-truck can have a much wider range of solutions depending on your budget and what you want to get out of it. Some questions that impact price include:
- How new is the semi-truck?
- What is the length of the lease?
- Is there an option to purchase the semi-truck after the lease expires? If so, for how much?
- Is there a penalty for terminating the leasing contract early, and if so, how much?
You and the lessor can negotiate different terms of the contract to arrive at a payment plan that works for you.
Is it a good idea to lease a semi-truck?
Generally speaking, a lease is more expensive than a comparable purchase. This does not mean a lease is a bad value.
Leasing a truck instead of buying it allows you to mark its use as a general business expense rather than the depreciation of an asset. This can make your balance sheet look more attractive to potential lenders with which to expand your business.
Purchasing a truck can be a major cash investment. Even if you finance a purchase, the down payment can cause a major cash flow issue, especially for a new start-up business. By leasing, there is little to no down payment, and being able to pay as you go helps improve cash flow.
With purchase, you are stuck with the semi-truck until you find a buyer or it goes to the junkyard. With a lease, you can change to a new, better semi-truck once your leasing term expires. The newer vehicle can have better fuel efficiency and technological upgrades.
Unless stipulated in the contract, repairs and part replacements are covered by the lessor, since they still own the truck. Obviously, this does not cover intentional damage. A lessor might have the contract say you are responsible for parts and repairs to make sure you take better care of the equipment. Be sure to read the contract.
How can I lease a semi-truck with bad credit?
Leasing is a good alternative to receiving a loan for a semi-truck, especially for those with bad credit. Rather than being loaned a sum and being expected to pay it back, you are given the use of a vehicle and are expected to pay for its service. Lessors are more likely to do business with someone with bad credit, as lessors have lower risk than banks: the most a bank can lose is the entire balance of the loan, but the most a lessor can lose is a month’s use of a semi-truck.
If you are interested in pursuing a lease, TopMark Funding can help you find a leasing solution that works for you, with solutions for almost any credit scenario.
Can I lease a truck with no money down?
If you’ve read this far into the article, you already know the answer to this. No money down can be a stipulation in the contract, but as a result, something else in the contract may change. The payments may go up, the cancellation penalty may rise, the buyout price of the truck at the end of the contract may increase, or all of the above. Be sure to ask the lessor about what changes to the contract a no-money-down agreement may entail!
Whether you want to lease with no money down or have the cash for a nice down payment, TopMark Funding has the means to get you a leasing contract that works for you. Give us a call at (866) 627-6644 and a leasing specialist can work on your behalf to get you the semi-truck lease you desire.
ABOUT TOPMARK FUNDING®
At TopMark Funding® client satisfaction is our top priority. With 20+ years of experience financing and leasing Kenworth trucks. We know what it takes to get you approved for the best truck financing deal possible.
We’re a top-rated semi-truck financing and equipment financing company located in Roseville, CA. We specialize in commercial trucking and heavy equipment. Our mission is to become your long-term financial partner by helping you grow your business and fleet. We’re not here for the short-term, we’re on long-haul with you. We achieve this by being your funding advisor, guiding you towards the best financial decisions for your trucking business.
If you’re in the market for a new or used Kenworth W900 or any of Kenworth’s great vocational or medium-duty trucks, we can finance it for you!
We have great rates, low down payments, and flexible monthly payments. We have semi-truck lease and loan options for several different types of trucks and trailers. Fill out the contact form or give us a call at (866) 627-6644. One of our truck financing specialists will contact you as soon as possible to go over your truck financing needs and learn more about you and your business goals.