You’re right, not many of us, seeing a truck on the road, wonder if it was bought for cash, maybe taken out on installments, or maybe leased? The answer may come as a surprise, but almost half of commercial vehicles in private trucking companies are leased.
According to the 2023 National Private Truck Council Industry Benchmark Report, 49% of all Class 8 trucks are leased. Full-service leasing also accounts for 76% of all lease types.
Strategies in trucking companies are varied. Some companies choose to lease all of their trucks, others use a combination of owned and leased vehicles, and according to the NPTC report, about 30% of businesses combine these two methods.
The decision to lease or buy a truck is often a complex choice that depends on many factors specific to each company. Both leasing and buying have their pros and cons. Leasing allows you to use the vehicle without a large initial investment. The loss of the truck’s value falls on the leasing company. A fixed budget, as payments are the same every month. Regular replacement of vehicles with the latest models, and the option of additional services are some of the advantages of leasing.
Lack of full ownership, restrictions on vehicle use (mileage limits, modification bans, etc.) or costs associated with terminating the contract and the possible redemption of the vehicle are just a few of the negative aspects of leasing.
So how do you make the right decision? It is always worth comparing the costs of leasing with the costs of buying, analyzing your needs, comparing offers and consulting a financial advisor. Analysis of all aspects will allow you to choose the solution that best suits the needs of the company and financial capabilities.
Wishing you wide and safe roads from ALL ABOUT TRUCKS & TrunsLab. We put Truckers first!!
