Pros and Cons of Buying and leasing a truck for your fleet
Which one is a better choice ” lease or buys trucks for your fleet”? It all depends on you, your fleet, and your desired financial situation. Here we have mentioned 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. Though, 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.
Moreover, leasing allows you to have greater amounts of cash flow for investing in other parts of your business. This gives an opportunity 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
Trucks are going to depreciate in value after their purchase, but they’re still valuable assets to your business if you own them. For instance, if you decide to invest in new equipment/trucks in the future, you can still sell them for additional funds.
Moreover, buying a truck gives you much more control over it, meaning that you are free to make new modifications and technological investments without having to seek the permission of the leasing company who owns the truck.
For information and updates, visit Tenax Transport today.