View Full Version : Leasing trucks
12-23-2009, 11:02 PM
curious here,, any one have experience leasing trucks, plows, ect ect,, i have heard this is a great tax right off,, but now a days the big three isnt doing so good,,im shure, three trucks, outfited with a factory plow should be quite a sale.. same with mowers, anyone try this approach?????
12-24-2009, 12:14 AM
They aren't giving out great deals on leases. I don't think Dodge is even leasing anymore.
12-26-2009, 01:25 PM
The BIG3 aren't the only ones suffering. Value leader Hyundai has had a loss in revenue, along with Toyota and Kia for North American and world wide sales!
There's not much advantage to leasing. In my area, you can only write off (completely) one vehicle per business location. If I needed three vehicles, I'd pay cash or finance if the rates were decent. Lease payments generally have higher interest, and shorter terms (which means higher payments). If you wanted to save money, as far as maintenance on a plow truck, you could buy a plow (take it off before you return the truck and mount it on the newly leased unit).
A 24 month lease is the best bet, but you'll expect $1500-2K payments each month, but you won't have to worry about tire replacement, brake work, for the most part anyway depending on how many miles you plan to accumulate in a year. If you'll drive the truck more than 20K in a year, it's not worth it to lease, as you'll have to PAY the dealer for additional mileage. if you drive less than 15K/yr, leasing is a good option if you plan to hand the keys back to the dealer after a few years.
When you finance, you can get longer terms (in some cases up to 84 months in my area), but personally, if you can't afford payments on a HD truck for a finance term of 48 months or less, don't get one, as maintenance bills will catch up to you around that time. Even more so the more abuse the truck will see. Finance rates are fairly decent right now at least at around 5% or less if you get a truck in inventory, a custom ordered vehicle might cost more up front, and at the finance counter. You also have unlimited mileage, but keep in mind that your monthly payment will stay the same even if you drive 40K/yr. If you finance for say, 60 months, and after four years you're up to 160K, the truck will have next to no resale value by the time you pay it off. In any case, it's best to keep it for a few years after the financing term to get maximum value out of the truck, before you have to worry about getting a new(er) truck with another monthly payment!
Personally, I'd shop around for a 1-2 year old HD in good shape with as low miles as possible. You cannot lease used vehicles of course, but you'll save $10K up front as the original depreciation hit has passed, and should you need them, parts should be plentiful.
12-26-2009, 06:17 PM
You can lease used vehicles. We have two companies in DFW that do this.
12-26-2009, 07:08 PM
Texas is a bit different than Ontario. However, dealers might be able to lease a 1 year old vehicle, providing it's still considered 'new' for that model year, say, being able to lease a '09 model in the spring of '10 is doable. But I wouldn't be able to lease a 2007 truck, or any vehicle for that matter right now due to age. If I was able to, it would more than likely be less expensive (all considered) to finance. I'm sure in Texas, if someone wants a truck badly enough, they'll find a way! A lot of people tend not to think about having to pay the payments on a lease, even if they don't use the vehicle. The only way out of a lease, is either to find someone to pay the payments on your behalf, or to declare bankruptcy. It's another reason why fiance is better.
If I had a phobia of driving vehicles more than a few years old, and cost wasn't an issue, I'd lease a new vehicle every three years. As I have no "old vehicle phobia" it makes more economical sense to own a vehicle outright. Even if you can no longer make the payments, say after two years, you can attempt to sell it for the remainder of the finance term so as to try to break even. Needless to say I can't see myself leasing a vehicle. Then again, I have the means to buy what I want outright. Perhaps if I came across a 0% finance term I might take it as it won't cost me any money to pay off the vehicle for X amount of years. I know 0% cannot be had for HD trucks, but perhaps once the economy turns around more it might at least be close!
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