Business owners often face a dilemma pertaining to either buying or leasing a commercial truck. Trucks are usually leased out for both commercial and personal purposes while there are plenty of heavy duty trucks for sale that one can consider as a one time investment. Leasing commercial vehicles is different from personal leases. Most commercial leases are open ended where there is ample flexibility for companies to pay as per their usage. However, monthly charges are hefty and the risks are higher too.
As compared to opting for quality heavy trucks for sale, commercial truck leases offer multiple benefits such as the absence of hidden costs owing to fixed monthly charges and servicing and maintenance costs. No down payment is required which would be a norm if you thought of buying any of the medium duty trucks for sale in recent times. For any business, this naturally facilitates more operating capital which can then be used for more productive purposes as well. Alongside, the terms of most commercial leases offer more flexibility for businesses. There are multiple types of leases which take care of short term needs, seasonal needs, daily needs and even offer flexible payment systems and methods. There are multiple types of vehicles that are used as per the requirements of business owners.
Companies can also keep their credit options in order as most commercial leases do not find their way into any balance sheet or ledger. Alongside, tax liabilities are considerably lowered through commercial lease payments in some cases which lead to greater savings. Is leasing a commercial vehicle the best option for businesses then? Some would naturally differ on this count.
It is a fact that in case of rough or heavy duty usage, going for a lease is avoidable. This is because maintenance and servicing costs will be a recurrent affair and this will naturally translate into higher costs if one has a lease plan in place. Damages to the body and bed of the truck will always be payable and may be a drain on company reserves if they happen frequently.
Buying domestic or international trucks for sale will naturally be considered detrimental to any organization in light of the earlier information. However, buying a commercial truck makes a company independent and there are risks of being answerable for any damages or accidents which are unavoidable in case of a commercial lease. As a result, if it is otherwise impossible, buying a commercial vehicle or truck is a safer option as compared to a lease in spite of all the benefits on offer.
Gurshaman Singh possesses immense knowledge on commercial trucks and vehicles and is an engineer at Tata Motors. He advises people on truck deals, financing, choices and more.
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