For owner-operators looking to build a fleet and start their own trucking company, the concept of leasing a truck can be confusing and seem daunting. What owner-operators need to do before they can know if leasing a truck is the right decision is to searching for a variety of leasing options because there are many out there. From long-term yearly contracts, to month by month, no obligation options, owner-operators should be find the best leasing terms for their trucking company before taking the next step.
What some owner-operators might find is that leasing a truck is not the best financial option for their business and will put down the money to buy a truck for themselves. Depending on how long you plan to be running and how big of an operation you have, the advantages of leasing vs. owning will vary. If you expect to consistently haul the same type of freight in the same quantity then buying a truck could save you money in the end. Otherwise leasing may be the best way to go in case you need different types of trucks for certain jobs.
Often owner-operators just starting opening their own trucking business are finding loads one at a time and don’t large long-term contracts with a specific. For owner-operators like these, leasing a truck provides the advantage of flexibility which will save them money if they end up having to change trucks according to the job.
There are also options for owner-operators to enter a lease purchase or lease to own program with another trucking company. This allows the owner-operator to pay the lease with the potential of ultimately buying the truck. This will certainly cost more money than just buying a truck outright but for owner-operators without a lot of working capital, this can be a good way to lease with the prospect of eventually having the truck for yourself.
Owner-operators can also opt for monthly lease payments to a dealership or company when they choose to buy a truck, but these contracts are binding and if the owner-operator falls into financial trouble they will still have to make the lease payments.
Further, owner-operators can lease on to a carrier, which means leasing a truck directly from another trucking company. This has the advantage of less responsibility and paperwork on the part of the owner-operator as the trucking company leasing the truck still maintains it and handles insurance costs and back office responsibilities.
Whether you decide to buy a truck out right, or to enter into some type of leasing program, be sure to assess your financial situations and make a plan for the type of trucking company you want to run.