Leasing vs Buying a Commercial Truck: The Pros and Cons
When running a trucking or logistics business, one of the biggest decisions you need to make is whether to lease or buy your trucks. There are pros and cons to both options, so it’s important to carefully weigh your market conditions, business plans, and finances when deciding. Here are some key considerations for this decision from C&M Motors, a San Diego area full-service truck leasing company.
Considering Market and Business Conditions
The overall health of the trucking market can impact your buying power and resale value if you choose to buy trucks. In a down market, leasing may allow more flexibility. Also, assess your current and projected business needs in the near term – if you expect significant growth or change, leasing may allow you to scale your fleet faster.
Leasing often includes maintenance and repairs in the contract, whereas buying means you take on all of these responsibilities and costs. Review your operational capacity to handle repairs and assess whether outsourcing maintenance through leasing could be beneficial.
Will You Operate the Trucks for Longer Than 5 to 7 Years?
Industry wisdom holds that buying becomes more cost-efficient if you will use trucks longer than 5-7 years. If you plan to turn over trucks more quickly, the residual value consideration for buying matters less. Carefully project your timelines and total mileage to calculate comparatives.
Getting Early and Faster Access to Electric Vehicles
Leasing can provide earlier access to newer trucks, like electric vehicles, without huge upfront capital investment. If going green sooner is a priority, leasing provides more flexibility to upgrade. Buying may only pencil out if you can fully utilize an owned EV for many years.
Contact C&M Motors for Truck Leasing from a Full Service Leasing Company
C&M Motors provides flexible semi-truck leasing programs with service, maintenance, repairs, and more bundled in. Whether you want to test new tech, scale your capacity, or avoid capital investment, our experts can craft a custom leasing solution for your business. Contact us to explore your options with a full-service truck leasing company.
Buying a commercial truck is a major business decision that should not be taken lightly. Before you buy, it’s important to understand the different types of trucks available, as well as the costs associated with each. Here are four key things to consider when shopping for commercial trucks for sale in San Diego:
Buying Versus Leasing
There are a few different ways to buy a truck for your business. You can buy the truck outright, lease it, or hire a trucking company to haul your cargo. Each option has its own set of pros and cons.
To buy a truck outright, you’ll need to factor in the cost of the truck, depreciation, and insurance. Depreciation is the loss of value of the truck over time, and insurance protects you in the event of an accident.
Leasing a truck is a cheaper option than buying, but you’ll have to pay the finance company your leasing fee every month. You should also factor in the cost of depreciation, insurance, and fuel. Overall, buying a truck gives you more control over the process.
Factors to Consider Before Buying
Before you buy a truck, make sure to consider the following factors:
- The size and weight of your cargo will affect the truck you need. You’ll need to decide how much cargo you can fit in the truck, and how much weight the truck can carry.
- How many miles the truck has on it will also affect the price.
- Older trucks have shorter lifespans, so you’ll have to factor that into your decision.
- Some features, like air conditioning, are standard on most trucks.
- Others, like a heavier capacity suspension, may be necessary for your cargo.
As previously mentioned, leasing a truck is a cheaper option than buying. The upfront costs are minimal and maintenance costs are included if a full-service lease is chosen. However, you will have to pay the leasing fees every month and you should factor in the truck depreciation, insurance, and fuel.
If you lease a truck, you have the option to buy it at the end of the lease. This is a good option if you plan to keep the truck for a long period of time.
Other Costs to Consider
These are just a few other costs associated with trucking. These include:
- Extended Warranties: Make sure you’re aware of the truck’s warranty, and factor that into your decision.
- Tires: You’ll need new tires every few thousand miles, and they can cost a lot of money.
- Insurance: Make sure you have the right insurance for the truck and your cargo.
Shop Commercial Trucks for Sale in San Diego at C&M Motors
Commercial trucks are essential for many businesses of all sizes. When shopping for a truck, be sure to consider the factors listed above. C&M Motors has a wide selection of trucks perfect for your business. If you are unsure of exactly what truck would best suit your needs, their professional staff can help you size and outfit your truck. Contact us today to learn more about our commercial trucks for sale in San Diego.
If you’re in the market for a commercial truck, you may be wondering if renting or leasing is the best option for you. Both options have their pros and cons, so it can be difficult to decide which is the right choice for your business. Let’s break down the differences between commercial truck rental and leasing, so that you can make an informed decision about which option is best for you.
Renting a Commercial Truck
The biggest advantage of renting a commercial truck is that you have the flexibility to return the truck when you no longer need it. This can be helpful if your business doesn’t require a commercial truck on a full-time basis, or if you only need a truck for a short-term project.
The downside of renting a commercial truck is that you’ll likely have to pay a higher monthly rate than you would if you leased the same truck. This is because commercial truck rental companies need to make a profit, and they do this by charging higher rates. Additionally, you may be required to put down a deposit when you rent a commercial truck.
Leasing a Commercial Truck
Leasing a commercial truck has a number of advantages over renting. First, you’ll usually get a lower monthly rate when you lease a truck than you would if you rented the same truck. This is because commercial truck leasing companies are able to offer lower rates since they’re not trying to make a profit – they’re simply trying to recoup the cost of the truck.
Additionally, when you lease a commercial truck you may have the option to purchase the truck at the end of your lease term. This can be a good option if you decide that you want to keep the truck after your lease is up.
The downside of leasing a commercial truck is that you’re locked into a long-term contract. This means that if your business needs to change and you no longer need the truck, you may be stuck paying for a truck that you don’t need. Additionally, commercial truck leases usually require a large down payment.
Pros and Cons: Head-to-Head
Let’s break down the pros and cons of commercial truck rental vs. leasing, so that you can make an informed decision about which option is best for you.
Commercial Truck Rental:
– Pros: Flexibility to return the truck when you no longer need it. No long-term commitment.
– Cons: Higher monthly rate than leasing. May require a deposit.
Commercial Truck Leasing:
– Pros: Lower monthly rate than renting. Option to purchase the truck at the end of the lease term.
– Cons: Long-term commitment. Requires a large down payment.
Find the Best Commercial Truck Rental for You at C&M Motors
So, which is the best option for you? It really depends on your specific needs and situation. If you’re not sure which option is best for you, we recommend that you contact a commercial truck rental company like C&M Motors. We’ll work with you to find the best commercial truck rental solution for your business. Get a quote today!
If you are looking to acquire a box truck and are not in a position to pay cash, here are some helpful tips on how to get a box truck lease or financing.
Box truck leasing and commercial truck financing are quite different from traditional vehicle financing or leasing. Traditional loans are based on credit scores, revenue, as well as time in business to determine what amount your business is qualified to borrow.
With box truck leasing, the vehicle you decide to purchase becomes collateral for the lease. This limits the lender’s risk which in turn helps the purchaser qualify for the financing.
Below is a checklist of requirements for determining your eligibility:
One of the best steps you can take toward deciding what and when to buy it so determine your eligibility by getting pre-approved for your box truck financing. C&M Motors can help you access your business history and credit to determine the range of financing you qualify for.
Factors that determine eligibility are:
· Credit score
· Time in Business
· Down payment amount
When it comes time to purchase or lease that new box truck, your credit health is a major factor. Applying to many promising credit offers can generate a lot of inquiries on your credit report. Each hard inquiry can drop your credit rating a full 10 points. Applying to a handful of places, rather than dealing with one trusted dealership, can drop your score by an entire credit grade. Not recommended.
Here are a few other activities to be mindful of that can affect your credit score:
· Other credit accounts – type, age, amount owed
· Credit utilization percentage (i.e., how much of your credit you’re currently using)
· Payment history
· Total debt owed
Why C&M Motors
C&M Motors is a locally owned and operated family business serving the greater San Diego area since 1982. With 2 locations to serve you (National City and Vista), we offer a more personalized experience and customized services to meet your business needs. We can help you with all your financing needs. One hard inquiry and no loss of credit score grade.
Sales, service, rentals, maintenance, collision, fabrication, parts, and 24/7 emergency roadside assistance are all available at C&M Motors.
Give us a call to learn more.
C&M Motors Inc
Electric trucks provide reduction in greenhouse gas emissions which is especially beneficial in an urban setting. In fact, electric trucks have been shown to cut greenhouse gas emissions by a third or more over diesel trucks.
Other Benefits Electric Trucks Offer
While this seems obvious, why is this a benefit? Lack of noise means they can operate at times when a diesel truck cannot. This can provide a significant benefit to businesses operating in congested urban areas with evening noise restrictions.
An electric truck has a highly efficient drivetrain and offers energy recovery during braking. When measured together, the regenerative braking and super-efficient drivetrain can lead to about five times higher efficiency for an electric truck.
Alternate Energy Sources
If you drive a diesel truck, there is only one way to fuel your truck. Diesel. If you invest in an electric truck, you have more options. You can charge your electric battery with standard plugin, paid-for electricity OR you can invest in solar for your company which would significantly drive down the cost of operations for your fleet.
Why SEA Electric and C&M Motors
SEA Electric was founded in Australia in 2012 and has been providing outstanding automotive technology for many years. In 2017, SEA Electric launched its first all-electric power-system that can be added to the truck chassis of your choice. These electric engines are the world’s most cost-effective solution for the commercial market. Zero emissions, super quiet, and a powerful, smooth ride.
C&M Motors is a locally owned and operated family business serving the greater San Diego area since 1982. With 2 locations to serve you (National City and Vista), we offer a more personalized experience and customized services to meet your business needs. Sales, service, rentals, maintenance, collision, fabrication, parts, and 24/7 emergency roadside assistance are all available at C&M Motors.
Give us a call to learn more.
C&M Motors Inc