Truck lease purchase programs have become widely popular among small businesses and young truck drivers. Yet we hear the same questions over and over again.
We have found that these are the most popular questions asked by young truck drivers or small businesses. Going with a lease to purchase truck program is a smart decision.
The best thing you can do before making a decision is to educate yourself on these programs and what each company has to offer. Luckily, we have simplified this process for you. We have gathered the information for you to help you make the best possible decision when choosing a lease-to-own trucking company. Knowing the basics and what to look for from lease-to-purchase truck program is beneficial to anyone considering signing onto one of these programs.
Knowing the Basics of Lease-to-Own Truck Programs
The more successful trucking companies are the masterminds behind these programs. Truck lease purchase programs are the combination of a traditional rental agreement and the ability to purchase the truck in the future.
When you begin to search for trucking companies with lease purchase programs a lot of them will hand you a contract made up of two parts. The first part of the contract consists of the leasing period. While leasing the truck you will be obligated to pay monthly fees. The type of truck usually sets the monthly fee as well as how long the leasing period lasts. The average leasing period is about 3-4 years.
The second part of the contract will represent the actual sale. This is typically where you have the option to purchase or return the truck. The value of the truck is determined at the beginning of the leasing period. The price of purchase can be influenced by many factors. It all depends on the company, but it is not unheard of for the leasee to negotiate a purchase price.
So why should young truck drivers and small businesses consider lease-to-own truck programs?
Knowing the Benefits of Leasing-to-Own Truck Program
It is all about the money! Lease-to-own truck programs give small businesses and young truck drivers the ability to have and test trucks without burning a hole in their wallets. Trucking companies with lease-purchase programs do charge monthly fees. However, the monthly fee is nowhere near the cost of purchasing a truck upfront. This a great alternative to any young truck driver who can’t afford to purchase their own truck. If you are looking to buy the truck towards the end of your agreement, these programs will lower the upfront costs and monthly payments.
Another benefit that attracts truck drivers for using a lease-to-own program, is the option to return or purchase the truck towards the end of the lease agreement. One aspect of the leasing portion is that it gives the truck driver the ability to test the vehicle out. Towards the end of the program truck drivers will be able to purchase the truck if they have found it to be a good investment for their business. If not, they have the option of returning the truck to the company with no additional charge.
How to Choose the Best Lease-to-Own Truck Company
So how do you know which lease-to-purchase truck company is best for you?
Well you should look into a variety of lease-to-own trucking programs. There are plenty of large trucking companies out there that offer these programs. The best thing for you to do is research what company best fits your budget and business needs.
When looking at a company you are thinking about leasing a truck from, you need to inspect the condition and type of vehicle you are agreeing to. Don’t pay top dollar to a company that will provide you with a truck that has been poorly maintained. This can set you up for a financial disaster down the road. A lot of companies hold you responsible for any damages done to the vehicle and towards the end of the leasing period you could be stuck paying repair costs. If you lease a truck with preexisting problems, you are opening yourself up to paying any maintenance or repair fees. Look for a lease-to-own truck program that offers vehicles that have been inspected and approved by mechanics. Some companies even offer liability and warranty programs within the contract.
When choosing a company, it is always in your best interest to find the company with the best deal. When leasing a truck, you are already benefiting from lowered costs, but some companies even go a step further by offering deals that separate them from their competitors. In benefit for you, there are companies available that have zero down truck lease purchase programs. Take advantage of that! Not having to pay anything upfront can be beneficial to any new business or rookie truck driver. It is a fresh start and allows you to make money before having to pay any fees.
Lastly, knowing every detail of the contract before signing is key to choosing the best trucking company to lease from. Every business is different and knowing what you are signing up for is critical in choosing the right company. Look to see if there is an initial fee, what the monthly payments are, the liabilities you are responsible for and the purchasing portion of the contract. Don’t choose a company that will in the end cost you more, when programs like these are meant to benefit both parties. If everything seems to be a fit for your budget, and will in the end be beneficial to your business, go ahead and sign!