Many businesses benefit from the use of commercial trucks, but these trucks are expensive. Luckily, there are many different options if you need a commercial truck, such as choosing between new and used or buying and leasing. Check out the advantages and disadvantages of each option, and make the right choice for your business needs.
Pros and Cons of a New Commercial Truck
With a new commercial truck, you get the latest in vehicle technology. This allows you to save money on fuel economy and other operating costs. Newer trucks also come with newer safety features, which may help prevent accidents or protect you in the event of one. Plus, with a new commercial truck, you know exactly what you're getting because it hasn't been owned by anyone else. Not only do you know nothing is wrong with the truck, but newer trucks have fewer maintenance requirements.
On the downside, however, while you get great benefits and peace of mind, new commercial trucks cost significantly more. If your business is small or just starting out, you may not have the money to afford one. Even if you finance a commercial truck, the monthly bill may put a financial strain on your business.
Pros and Cons of a Used Commercial Truck
Used commercial trucks are great because they cost less. If you purchase one that is only a year or two old, you can still get more advanced features and technology, but you'll pay significantly less. Depending on how well your business is doing, you may even have the ability to buy the truck outright, eliminating the need for a monthly payment.
Unfortunately, with used trucks, you don't know what happened to the truck in the past. Even if you can ask the previous owner about the truck's condition, there's no guarantee you get a straight answer. A used commercial truck also require more maintenance to continue to keep it working properly.
Pros and Cons of Buying a Commercial Truck
Now that you know if you want a new or used truck, it's time to decide if you want to buy or lease. For many business owners, buying a commercial truck is the better option because even though you may be making monthly payments, they are going toward the value of the truck. Once the payments are done, the truck is yours and you can do whatever you want with it. Buying a truck also allows you to include it as one of your business assets.
Unless you have enough money to buy the truck outright, you'll need to take out a loan from a bank and make monthly payments. In other words, you don't really own the truck. The bank does. The bank may have certain restrictions, such as requiring you have additional insurance. Plus, if you fail to make your monthly payments, they can repossess your truck. Owning your own commercial truck is also more expensive. The monthly bill costs more, and you are responsible for the cost of routine maintenance and repair.
Pros and Cons of Leasing a Commercial Truck
For other business owners, leasing a commercial truck is more appealing. For starters, if you buy the truck, you're stuck with it for a while, but if you choose to lease, you have the option of upgrading to something newer once your lease expires. In addition, the monthly payment you'll make is less than you'd pay for a finance loan to purchase the truck. Lastly, in the cases of general wear and tear and maintenance, the truck owner, not you, is responsible for repairs.
If you do choose to lease, however, you are not free to make alterations to the truck because you don't own it and aren't taking steps to own it. Once the lease is up, you do have the option to purchase the truck, but if you do, you'll actually pay more overall than if you just purchased it in the first place.
For different business owners, different solutions are better, and each option comes with its own pros and cons to consider. For more information regarding commercial trucks, contact a dealer like Arrow Truck Sales in your area today.