Is it better to buy trucks or lease trucks for your fleet? Of course, it all depends on you, your fleet, your niche, and your desired financial situation. Here we look at some of the pros and cons of buying vs. leasing trucks for your fleet.

Leasing gives you flexibility

When you buy a truck, you’re investing a huge sum of money into an asset which is only going to steeply depreciate in value. However, when you lease, you’re passing this burden on to somebody else – you don’t have to worry about the maintenance and dropping value of the truck. This way, you can lease a truck for the best years of its life and then give it back when it no longer suits your needs.

Furthermore, leasing allows you to have greater amounts of cash flow for investing in other parts of your business. This means that you are better able to remain competitive by improving your fleet in other areas thanks to the reduced costs of leasing. Also, if your truck experiences an accident and needs repair, you won’t have to shell out if you have a full-service lease agreement in place.

Buying gives you control

Even though trucks are going to depreciate in value following their purchase, just like any vehicle would, they’re still valuable assets to your business if you own them. For example, if you decide to invest in new equipment/trucks in the future, you can still sell them on for additional funds more new investments in your fleet.

Furthermore, buying a truck gives you much more control over it, meaning that you can make new modifications and technological investments without having to seek the approval and advice of the leasing company who owns the truck – it’s your truck to improve and upgrade as you please!

Alas, whether you want to buy or lease a truck all depends on you and your financial state, as well as your future plans for your company. Over 52% of US trucking firms have equipment which is leased from somewhere else, so it’s not uncommon for fleets to contain a combination of both leased and bought equipment. Whichever you choose, just make sure that you’re making the right financial decisions for your company’s future!