Full Service Truck Leasing
It is well known that if an owner operator, small business or fleet developer can focus on business growth and profitability without the worry of excessive truck expense or hassle, success is likely. It's the business focus thing and a primary reason full service truck leasing companies came into being. Later, tax laws became a factor.
Full Service Leasing companies such as Ryder, PacLease and Penski count on their ability to specify, maintain and own a truck ...then sell the thing at leases end with a net profit as a result. Typically they bundle services such as fuel tax reporting, washing the truck and sometimes even providing the driver. The typical lease period is for five years, but shorter and longer leases are written.
Most leases are quoted on a weekly or monthly basis with a mileage charge. An example might look like; $390/week & 7.4 cents per mile. Insurance is not normally in the lease price.
The underlying document for most all truck leases is the "Schedule A". The Schedule A is used to assign a calculated value to the truck at any point in the lease. In other words, just what it will cost to break the lease. Before signing any truck lease agreement it may be wise to analyze the Schedule A and its' ramifications carefully.
Full Service Truck leases are fully tax deductible versus a simple truck purchase where cost components of truck ownership itemize separately.
In my experience, FSL truck leasing companies tend to see the little guy coming. In fact when I left truck leasing I felt I could save the little guy a lot of money by selling quality, well specified equipment. I still believe that to be true. If you want to write one check and be done with it, a full service truck lease may be for you. I argue you need to have extra profits in your non trucking operations though because the full service lease option is not free.