Many truckers and interested investors find it difficult to navigate across the advantages of being a purchase lease operator. Leasing ultimately refers to renting branded title cars for a long period. The minimum lease duration is a year. Technically, when you lease a truck, a fleet manager pays for utilizing a vehicle instead of the vehicle itself. Below, the article will discuss some benefits of leasing/owning your own truck.
You are considered as an owner-operator
Once you sign your lease, you are no longer a company driver. This means that you are deemed as self-employed and can run your own corporation. It liberates truckers from the shackles of a trucking company. This allows you more control over your work and will enable you to work with more flexibility. Truckers can also spend more time with their family.
You can earn more money
Money is the biggest reason why people choose to become owner-operators. You can make more income by working as an owner-operator. Many truckers experience a sixty to seventy percent increase in their yearly income after becoming an owner operator.
Additionally, since it does not require you to invest a huge capital expenditure, it allows truckers to save plenty of capital at the initial stage. This way they have a safety net and can take risks. Besides upfront costs, truckers can also avoid the hidden costs of truck purchase such as taxes, overhead, towing and repair where you can save if you get your own tools like the best torque wrench.
You also do not have to worry about the truck depreciating in its cost. Leasing the truck will have no impact on the company’s net worth. With all the money saved which would have been otherwise utilized in irreplaceable expenses, truckers can benefit immensely.
You will own an asset
Lease purchases ultimately mean that you get to be an independent owner of a giant semi truck after about 36 to 48 months, depending on your contract. Once you serve the period, the ownership gets flipped into your name and you can use that asset to generate more revenue.
One of the main differences between leasing and renting is the time frame. While rentals require a much smaller commitment of weeks and days, a lease is usually a yearly contract. Besides that, leasing also involves the potential of owning a semi truck, which is something rentals do not offer. If you want to get access to a trailer truck without having to come up with finances for owning one, then you can do so by becoming an independent contractor for Bay & Bay!