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These Are the 10 Very Best Reasons to Lease Your Semi Truck

  • 4 MIN READ|
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  • by Noel Ballon|
  • May 9, 2019 |
  • General

Semi trucks in for line at a leasing company

For many, the dream of being their own business owner seems out of reach. With high start up costs for almost any business venture, you may think that you will never have the chance to be your own boss. This, however, is not the case. If you've ever thought about getting your own semi truck instead of working as a company man, leasing a semi truck may be right for you.

Let's Go over the Top 10 Reasons Why Leasing a Semi Truck Is a Good Idea:

  1. Availability
    Truck leasing companies stand to make money if they have more people leasing trucks from them; therefore they try and make it available to as many people as possible. Even if you have a history of bad credit, there is a high probability that you will still be able to lease a semi truck. Often times the company won’t even check your credit. This will give you the opportunity to experience the perks of ownership and running your own business. The other option you have would be to get a traditional loan from a bank, but nowadays, they are giving loans to fewer people in this business especially if you are someone with less than stellar credit.
     
  2. No Long Term Commitment
    Many of these truck leases are known as “walk-away” leases. This means that if things aren’t working out for whatever reason, you can opt out of the lease at any time (usually for a fee). This allows people that are new to the industry or to being their own boss to get their metaphorical toes in the water. Being an independent owner-operator trucker isn’t for everyone, and leasing is an excellent opportunity for anyone who wants to test their luck in the industry. This form of limited commitment cannot be enjoyed by those that decide to go with the option of buying a semi truck instead.
     
  3. Up Front Cost
    There is generally little to no money that you will have to put down unlike getting a loan. If you choose to get a lease from an independent leasing company, you can generally work with them to obtain terms that are more favorable for you and your situation. The payments will be fixed and predictable, even if you decide to get what’s known as a step-up lease, meaning your payments will slowly increase over time (only get this type of lease if you believe you will begin to make more money as you expand your business ventures).
     
  4. Maintenance
    You may not have to worry about maintaining your truck yourself depending on the company you lease with. Now, you may see this as a negative, especially if the company requires you to use their own repair shop. Just make sure to shop around to make sure the company you’re choosing is the right deal for you. Some companies will automatically deduct repairs right out of your paycheck, so it’s important to understand the terms of any contract before you sign.
     
  5. Earning Potential
    Managing your finances correctly will depend on whether or not can to find a good independent leasing company, if you do, you could very well find yourself looking at the average semi truck driver salary or making some steady profits that you would not have been possible working for a trucking company. The people that often have trouble with semi truck leases are those that are forced to work with only one carrier because of their lease terms. A typical commercial truck lease will have low monthly payments so that you can have more cash flowing into your bank account than coming out.
     
  6. Lease Completion Incentive
    At the end of your lease term, you will have the options to either buy the truck for a reduced price (this will have been outlined before you even sign the contract), leasing a newer truck, or continuing the lease on your current truck. Some companies also offer cash back rewards to those that complete the entirety of the lease agreement that they signed. This does mean that you will have to continue making monthly payments for the duration of the lease, but as long as you aren't looking to get out of the lease, you should be fine.
     
  7. Drive a Newer Vehicle
    You will usually have the opportunity to lease a brand new truck or one that is only a couple of years old when you decide to lease a vehicle. This means that you will end up paying less in repair costs than you would getting an older truck. This doesn’t mean you can skimp on any routine maintenance as this is a critical aspect of being a truck driver. But saving some extra money by having fewer repairs is always a plus.
     
  8. Keep Your Money in Your Pocket
    Having all of your money locked into one asset is never a good thing in the investment world, so why would this be any different in business. Therefore, putting all of your money into equipment (a semi truck) for your business is never a good idea. The best practice is to keep your capital as fluid (available) as possible in case there is an emergency that cannot be handled with leasing or with credit. Holding onto your capital instead of investing it all by buying semi trucks is a very smart long-term strategy. Even if you weren't planning on paying for your purchase with cash, you can enjoy smaller down payments with leasing, which still reduces the amount of money you have to spend.
     
  9. Take Less Risk
    Leasing a semi truck instead of buying your own is less of a financial risk. You'll know that there will be a set amount of money that you're expected to pay each month that is lined out in the lease agreement. This will offer you more flexibility in the years to come vs purchasing and owning a truck of your own. If you are having any doubts about whether you want to own a truck, leasing might be right for you.
     
  10. Be Your Own Boss
    This seems obvious, but since we are listing the top 10 reasons you should lease, this had to be on here. Being your own boss will give you the flexibility to choose what days you are out on the road and make decisions about what kind of hours you want to work. You will also learn to be quicker on your feet as you have to be able to manage all of your finances and make sure that you have jobs lined up from your carriers to keep a steady flow of income. As your own boss, you become the only person standing in the way of your success; this means that any habits you develop, whether they be good or bad, are the only things that are going to affect your business. This also comes with its own downfalls, as nobody will be there to make sure you don’t trip up along the way.
     

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