Purchasing a truck is a costly endeavor, and most people do not have the financial resources to make that type of investment. In this instance, leasing stems as the better alternative. In the trucking industry, you can come across different type of leasing options that make it easy for you to own a truck. A conventional lease is where you are responsible for everything related to the truck. This involves truck payments, maintenance, fuel, and more.
Standard Lease
With a conventional lease, the trucking company will essentially fund for you, and you can enjoy a credited down payment for your purchase. Some trucking companies will also offer alternative trucks to get your payroll running until your truck is unable to haul freight for some reason. The costs that you will have to pay weekly for your truck will likely be fixed. In terms of upfront payments, you do not have to pay anything from your own pocket. With the conventional leases, you do not need any credit check or money down policy.
Why Choose a Lease Purchase Instead?
A lease purchase has two sides. In the first side, some carriers will allow you to come in, put no money down, start a lease purchase, and at the end of your terms you will have a balloon payment. This is a payment that is equivalent to the value of the truck at the moment. You can pay this money using outside financing or from your own pocket.
The other side requires you to put some money down while working for the company. Some companies will reduce your down payment each year that you are there. Overall, this payment method requires you to put down a down payment without a credit check. You can also get down payment credit as well.
As a lease purchase operator, you can make plenty of money. There are plenty of variables when it comes to answering the question of purchase operator. The company that you choose to make the purchase with will make all the difference when it comes to you being able to be profitable.
Unlike the standard option, the lease purchase option provides you with the liberty to change your mind over a trucking purchase after your term ends. If you are getting plenty of benefits with a lease purchase, then it is best to opt for that option.