Types of truck Ownership and lease plans
| Finance Lease | dollar buyout, lease to balloon (terminal rental adjustment clause or TRAC), fair market value | Leasing companies name is on the title, leasee (you) are responsible for all maintenance, permits plates (in most cases you must take title the truck at the lease terms end. Normally, a small or no down payment. Usually only the most credit worthy will qualify for a new truck. Many dealers have an internal lease program for used trucks as a way to get out of stagnant iron and often will lease to a less than average credit risk (often from a local) to move a truck. |
| often you pay 1st and last payment up front | Many trucking companies have some form of a lease to own they offer their drivers. If your thinking about get involved with such a deal be sure to ask several others in the company how such a program worked for them. Caution, The reported record has been mixed! | |
| You should talk to your tax accountant. The strange thing about tax accountants is that each is sure they are right and each seem to have a differing opinion on key issues. Leasing and depreciation are prime examples of differing opinion. Either accept the opinion of your tax accountant or get another who agrees with your plan before you enact the plan. | ||
| Full Service Lease | large deposit or excellent credit rating is most often required for the smaller players. | Leasing company titled, permitted and plated. Leasing company is responsible for maintenance. Typically you pay a weekly fee for 3 to 7 or so years. Plus, you pay a fee for every mile (minimums may apply). Leasing company sets the price (cost to buy out of the contract) of the value of the equipment at points into the future by an addendum to your contract called a "schedule A". You may supply appropriate insurance or it is supplied by the leasing company. |
| Simple Finance | 0-20% down
new trucks most often 60 months maximum |
Will almost always give you more flexibility, and most times
will cost less this site can give you excellent tips as to
how.
But, you are responsible for everything - if you are uncomfortable with that... often truck dealerships have extended warranty and preventative maintenance programs. Dance around this site for other potential solutions. With smart ownership the overall risk amount can be much lower and often (if necessary) equipment can be sold in a year or less without serious financial consequences. (quality, well specified used equipment always sells first, for the most money) |
Wealth building with heavy duty trucks
truck finance and equity issues
0 or low money down truck deals
PM Program