Leasing Your Own Semi Truck
As with any sort of financing plan, there are pros and cons associated with leasing your truck from a dealer. Leasing a vehicle such as a truck doesn’t require the same sort of paperwork, fiscal responsibility or worries as financing the purchase through a bank. FYI – Learn about buying an auto trailer in our Auto Driveaway section. In general, the monthly payment is lower because you’re only covering the vehicle’s depreciation cost and not paying off the actual purchase price of the truck.
Leasing rarely requires a down payment which is attractive for many people; however, by adding a down payment the monthly payments can be reduced. There are usually no penalties for mileage and wear and tear with truck leasing. You have the choice of returning the truck at the end of the lease or buying it at a reduced price from the dealer. Many people simply return the truck at the end of the lease and get a newer model, thus upgrading on a regular basis. Some companies choose to lease their trucks because it’s better for them to deal with the finances that way, rather than having large bank loans on their trucks.
It’s important to look at the other side of the coin when leasing though. Because leasing often includes extensive maintenance and service packages, the payment may be larger per month than if the vehicle had been bought outright. It’s important to know what your lease payment is actually paying for every month.
Many dealers require additional insurance procedures before leasing out vehicles. Higher liability limits as well as lower deductible levels are common when leasing. This may end up raising your insurance premiums.
A lease contract is every bit as binding as any other form of contract. If you decide to end the lease early, you’ll usually end up paying a penalty fee – sometimes a considerable one. If you want to make any sort of modification to your leased truck, you’re pretty much out of luck. Lease agreements generally state that the truck is to be returned in the same condition and configuration as when it was initially leased. It’s also important to know that leasing will not allow you to build up any sort of equity in that beautiful Kenworth truck you drive.
Depending on your situation, leasing may be the best step to get you behind the wheel of your own truck. But make sure you know all the details and fine print of your lease agreement. You may find yourself in a position that will cost you more to get out of than the truck’s worth.