Buying Your Own Semi Truck
When you decide that you want to be your own boss and have your own truck to haul whatever loads you want, you can go to a bank or finance company and take out a loan to buy a semi truck.
Over a period of time (usually 3-5 years) you agree to make regular monthly payments to finance the loan of the purchase cost. This monthly payment consists of the principal amount and interest due and when the loan is paid off at the end of the term, you own the vehicle.
Is buying a semi-truck a good idea? Some advantages to taking out a loan to buy your truck include:
- By making monthly payments on the vehicle, you’re actually helping to pay off the total cost of the truck. When the loan’s repaid, the truck is yours – free and clear.
- If you own a trucking business, the cost of the vehicle and any depreciation can be deducted from your taxes. By having a good accountant, you can maximize the savings on your tax return in this way.
- With many loans, a down payment isn’t required. By including an initial payment though, you can reduce your monthly costs.
- Insurance costs are generally lower if you buy your truck, rather than leasing it.
- Because you’re paying off the cost of your own truck, you can make whatever modifications you like to it.
Of course, there are also disadvantages to getting a loan to buy your own Mack truck. These can include:
- Loan payments can oftentimes be higher than any lease payments.
- Buying a semi truck or auto trailer means that you’re also responsible for any service and maintenance that needs to be done to it. If your truck needs an expensive part, you need to pay for it yourself – unlike leasing, which generally covers these costs in the monthly payments.
- Even though you are paying down the cost of the truck, it’s technically not yours until all the payments have been made. At this time, you take ownership of the vehicle and can decide whether you want to sell it and get a newer model or simply upgrade a few parts.