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View Full Version : Leasing A truck for Plowing or Lawncare


ein999
02-23-2009, 04:32 PM
Does anyone lease there trucks to plow snow and pull trailers with. I am a solo operation and want to start off with a new truck for plowing. I cant see having one truck that is not reliable. The truck will be parked except when being used. Does leasing programs even exist for commercial trucks.

CoupesCuts
02-23-2009, 05:02 PM
I know in my state I couldn't lease my truck. You may be able to lease a half ton but I dont think anything above that they lease. They have programs for fleets, but obiously you arent a fleet. Even if you could lease, I wouldnt. May payments on something you own. At the end of the lease what do you have? - nothing. Plus, damage to your truck is inevitable. Bumps and bruises will cost you a ton of money when you go to turn it in. You are better off buying a late model used or new truck. You will never regret having a dependable truck that you own.

JNyz
02-23-2009, 05:29 PM
Yes you can lease a truck to plow or pull a trailer.

whoopassonthebluegrass
02-23-2009, 05:31 PM
Just food for thought: you'd be spending a small fortune on a lease. That's THE MOST EXPENSIVE way to pay for a vehicle... plus, when it's over, you don't even HAVE the truck you spent all that $$$ on.

Nick's Lawn Care
02-23-2009, 05:55 PM
One of the biggest companys in our area leases there trucks. The lease about 15 F250's and about 7 F550's...

Nick

Monroe74
02-23-2009, 06:50 PM
if you talk to your dealer they have all kind of options for leasing such as paying only when your making money I.e april thru november or a lease with dollar buy out where you are leasing the truck but at the end you only pay a dollar to keep the truck. these are expensive options but when the times are slow december thru march you aren't paying anything or if you want to keep the truck it will only cost you a dollar at the end of the lease. Just be sure to talk to your commercial sales man/woman they will help you. I know for a fact ford does this that is how i got my 08 F-550. Good luck

whoopassonthebluegrass
02-23-2009, 07:06 PM
I refer you to this thread if you think that because a company is big they must know what they're doing:

http://www.lawnsite.com/showthread.php?t=262189

Nick's Lawn Care
02-23-2009, 07:20 PM
I refer you to this thread if you think that because a company is big they must know what they're doing:

http://www.lawnsite.com/showthread.php?t=262189

I'm actually pretty good friends with him, his wife has a great paying job so he spends everything he makes on his company.

He's a pretty smart guy but when i was at his shop one day i saw two trailers 6x12 dual axle trailers with dump inserts on them. They had high sides for leaves, and a leaf loader on them. I asked him why he did that and he said it was cheaper... I dont think so though...

-6x12 trailer = $1800 or so
-dump insert = $3000 or so
-leaf loader (they were 18hp) = $3200 or so
That equals about $8000

He should of bought a dump trailer and a loader because he could of hulled more and saved money...

- dump trailer 6x12 = $5500
- leaf loader = $3200
Total = $8700

For about $700 more he could of saved money on gas and time... Thats the only thing i didn't understand while i was at his shop...

Nick

Monroe74
02-23-2009, 07:23 PM
I have considered both options finance out right at 5% and i get to depreciate it over 3 yrs and still pay 2yrs with no right off or pay 3% and write it off every year for five years and keep my income to debt ratio down so when it come time for me to get a line of credit for the hard times or waiting to be paid I'll be able to get it.

whoopassonthebluegrass
02-23-2009, 07:25 PM
I'm actually pretty good friends with him, his wife has a great paying job so he spends everything he makes on his company.

...

For about $700 more he could of saved money on gas and time... Thats the only thing i didn't understand while i was at his shop...

To each their own, but if he can't handle THAT math, who's to say he gets the #'s behind leasing? And with his wife supporting his "habit", who's to say how successful he would otherwise be?

Not being argumentative... just doesn't make any sense in my own little head to pay for a vehicle you don't even get to keep or sell off when you're done...

Nick's Lawn Care
02-23-2009, 07:35 PM
To each their own, but if he can't handle THAT math, who's to say he gets the #'s behind leasing? And with his wife supporting his "habit", who's to say how successful he would otherwise be?

Not being argumentative... just doesn't make any sense in my own little head to pay for a vehicle you don't even get to keep or sell off when you're done...

I believe since he is leasing them he does not have to pay to maintain them and so on… He just gives them money and he uses them. I do not know his contract or any details on it. I do know he leases through enterprise though, all of his trucks have the little E on the corner of the tailgate. His business is very successful and his wife does not give him any money to run it, how ever if his company goes south he will still be fine. That enables him to make more risky decisions…

Nick

JNyz
02-23-2009, 07:51 PM
To each their own, but if he can't handle THAT math, who's to say he gets the #'s behind leasing? And with his wife supporting his "habit", who's to say how successful he would otherwise be?

Not being argumentative... just doesn't make any sense in my own little head to pay for a vehicle you don't even get to keep or sell off when you're done...

I quick example of a lease vs. outright buying.

Lease of a 40k truck.

Lease rate 550.00/month for 36 months = 19,800.00

Buy rate 780.00/month for 5 years = 46,800.00 and you own it.

After 36 months you have 19,800.00 invested in a lease.
After 36 months you have 28,080.00 invested in a buy.

What is the truck worth after 36 months? or 60 months?

After 6 years the person with the new truck invested 46,800.00 plus maintenance and repairs.

The persons who leases walks away with nothing and pays no extra charges but had two new trucks in 6 years and the one who buys has a 6 year old truck worth 10-15,000.00.

The one who leases has more tax advantages so I would say it is a wash if you get the right lease price.

whoopassonthebluegrass
02-23-2009, 08:22 PM
I quick example of a lease vs. outright buying.

Lease of a 40k truck.

Lease rate 550.00/month for 36 months = 19,800.00

Buy rate 780.00/month for 5 years = 46,800.00 and you own it.

After 36 months you have 19,800.00 invested in a lease.
After 36 months you have 28,080.00 invested in a buy.

What is the truck worth after 36 months? or 60 months?

After 6 years the person with the new truck invested 46,800.00 plus maintenance and repairs.

The persons who leases walks away with nothing and pays no extra charges but had two new trucks in 6 years and the one who buys has a 6 year old truck worth 10-15,000.00.

The one who leases has more tax advantages so I would say it is a wash if you get the right lease price.

I see your argument in the #'s... except that you treat the situation as having a "given" that the person who bought the truck is needing to sell it when they're done.

The fact is, after 6 years, most trucks are still gonna be in great shape, and if the truck is kept, THE PAYMENTS END. Meanwhile the guy leasing continues to lease... and lease... and lease... perpetually.

JNyz
02-23-2009, 08:33 PM
I see your argument in the #'s... except that you treat the situation as having a "given" that the person who bought the truck is needing to sell it when they're done.

The fact is, after 6 years, most trucks are still gonna be in great shape, and if the truck is kept, THE PAYMENTS END. Meanwhile the guy leasing continues to lease... and lease... and lease... perpetually.

No. Sorry for the confusion. I was just say after 72 months the one who purchased the truck will have about 15,000.00 more into the truck and still have ownership of the truck worth about 15,000.00. The one who leased will have the 15,000.00 in his pocket.. That is why I called it a wash.

JCRalston07
02-23-2009, 09:07 PM
Consider this using the math above

$550/month for 6 year lease = $39,600 that would be two trucks over that time.

$780/month for 5 years = $46,800 and the payment ends.

Now stretch that out to 9 years

$550/month for 9 years = $59,400

The guy who bought his truck still has his $46,800 investment and has the ability to get back maybe $10,000 to $20,000 when he sells his truck and buys a new one. So, using the low end he only invested $36,800 over the 9 years

difference of $22,600. Dont think there are $22,600 worth of tax incentives in leasing.

JNyz
02-23-2009, 09:28 PM
Consider this using the math above

$550/month for 6 year lease = $39,600 that would be two trucks over that time.

$780/month for 5 years = $46,800 and the payment ends.

Now stretch that out to 9 years

$550/month for 9 years = $59,400

The guy who bought his truck still has his $46,800 investment and has the ability to get back maybe $10,000 to $20,000 when he sells his truck and buys a new one. So, using the low end he only invested $36,800 over the 9 years

difference of $22,600. Dont think there are $22,600 worth of tax incentives in leasing.


I am not advocating leasing. I just put an example out there. You also have maintenance and repairs on the purchased truck that you will not have on the leased truck. Also you will be able to deduct about 10,000- 15,000.00 more. When you get down to the finale numbers it will only be a few thousand dollars difference either way. Some may not be able to afford purchasing a new truck and leasing gets them in a new truck with less out of the pocket dollars. It is not for everyone but there are advantages. You really need to talk to your tax account to see what is best for you. For me leasing does not have a big advantage.

Just a note. We are not in the transportation business but most transportation companies lease so there must be advantages to some companies.

JCRalston07
02-23-2009, 09:33 PM
I dont know for sure but I get the impression from some companies the Bling factor has more to do with it than the taxes.

JNyz
02-23-2009, 09:46 PM
I dont know for sure but I get the impression from some companies the Bling factor has more to do with it than the taxes.


Sure that is important for some people but if you are successful you can't take it with you.

JCRalston07
02-23-2009, 09:48 PM
Sure that is important for some people but if you are successful you can't take it with you.

this is true

STIHL GUY
02-23-2009, 10:06 PM
i would buy a low mile dependable used truck to start off

Monroe74
02-23-2009, 10:36 PM
you can't compare consumer auto leasing to a commercial truck lease. there is more than one type on lease program out there.
The lease program that I am on I pay 750 a month for 5 years and pay a dollar at the end to keep it. that is it, it's mine . And while I pay for the truck I get to write it off every year payments ,taxes, interest etc. And the debt is not shown on my credit report freeing me for lines of credit to cover 60 and 90 day accounts.
If you go and buy the same truck with your traditional loan you would pay 730 for 5 years and the truck is yours at the end but you only get to depreciate it for 3 years and you don't get to write off payments, interest,or taxes. and you have this on your credit report there by increasing you income to debt ratio and limiting your growth.

d&rlawncare
02-23-2009, 10:46 PM
if you talk to your dealer they have all kind of options for leasing such as paying only when your making money I.e april thru november or a lease with dollar buy out where you are leasing the truck but at the end you only pay a dollar to keep the truck. these are expensive options but when the times are slow december thru march you aren't paying anything or if you want to keep the truck it will only cost you a dollar at the end of the lease. Just be sure to talk to your commercial sales man/woman they will help you. I know for a fact ford does this that is how i got my 08 F-550. Good luck

So what option did you take?

Monroe74
02-24-2009, 04:57 PM
I choose the option with a dollar buyout

d&rlawncare
02-27-2009, 11:56 AM
What type of payments and term you get with that? (if you dont mind me asking). You can PM if you dont want to post public.