Leaseing vs buying vehicles ??

Discussion in 'Lawn Mowing' started by leeslawncare, Nov 19, 2000.

  1. leeslawncare

    leeslawncare LawnSite Senior Member
    Posts: 649

    I've been thinking about getting a new work truck.should i lease or just buy?I'am thinking leaseing may be the way to go but ,,how much truck$$ can you get for a biz?an what are the advantages?any one out there lease?Also what about leaseing mowers???Thanks...Lee
     
  2. Twotoros

    Twotoros LawnSite Senior Member
    Posts: 494

    I haven't leased a car or truck but have equipt. through Advance Acceptance corp. Their pay plan is six monthes on six off so no payments are do in our off season . Snow equipt. is paid oppisite of the mow season. Works for me but cash is always best when it can be done .
     
  3. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    For a new vehicle, lease is usually the best way to go. The lease payment is completely expensed on income taxes, while if buying, it takes more than ten, sometimes up to 15 years to depreciate a vehicle. Also, do a search on this - often discussed in past.
     
  4. landscaper3

    landscaper3 LawnSite Bronze Member
    Posts: 1,354

    We lease our Walker mowers but purchase at lease end for $100.00 saves us more money and we have tried many ways and found this to be the way. As far as trucks a lease unless you get a Agrilculture lease on the truck you really wont save much and if you use em like we do it may come back to bite you. You are responsable on a manufacture lease for all scratches and dents unlike loans. If you can get 2 or more trucks they tend to give you a lease discount which makes it worth it, lease has better tax advantages too. So if you want to trade in every 3-4 years leasing might be the way but if you plow sand and work truck you might want to get a business loan or manufactures loan. So your gonna have to way the pros and cons and decide which fits your company and finacial plan
     
  5. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    If you are just going to lease and turn the vehicle back in at end of lease, you are going to spend a lot more money over the long term. Even if I don't want to keep a leased vehicle, I would usually buy it and resell it. The residual (buyout figure) is often 2K to 3K under the market value.
     
  6. leeslawncare

    leeslawncare LawnSite Senior Member
    Posts: 649

    just wanted to bring this back to the top . haven't heard enuf from you guys ..yet! Thanks lee
     
  7. Leasing is the best way to go in most situations where there is business dollars and cash flow involved. Leases do not appear on the balance sheet, and you pay for hte value of hte equipmet as you use it. Slow season leases often have a higher intrest rate to offset the lack of payments in the off season.

    Look at a lease with a high residual payment. Like the one of the previous posts mentioned, you can buy out the residual value at under market values and keep your payments low if you look at 20% residuals. Those are on the oppisite end of the lease spectrum from skip payments as far as value goes. The higher the residual, the better the dollar value. Lower residuals, such as skip pays and $ 1 dollar buyouts, are a poorer value unless you are going to wera out the equipment in the lease term. We bought our 97 F 250 with 36,000 miles off the lease company for the
    $ 7,000 residual value after 36 months of lease payments. That was a good deal.
     

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