Leasing a truck

Discussion in 'Lawn Mowing' started by Dburd61, Dec 7, 2004.

  1. Dburd61

    Dburd61 LawnSite Member
    Posts: 12

    I wanted some advice weather I should Lease or buy a new truck next spring ,Would I be able to write off the payments if I buy the truck or not,Any advice would be helpful.
     
  2. forgop

    forgop LawnSite Member
    Posts: 145

    I'm not sure, but I think it wouldn't matter if you bought or leased. With a lease, just keep your miles down or you'll pay through the nose at the end. I have leased 3 vehicles in the last 5 years or so and I always go with 15k miles a year. Many people just go with the advertised mileage and never realize you can buy some miles ahead of time. It's only like $5 more a month and those extra 3k miles sure come in handy. Well worth it IMO.
     
  3. Travis Followell

    Travis Followell LawnSite Silver Member
    from KY
    Posts: 2,207

    I can't understand why someone would make monthly payments on a vehicle just to return it when the lease is up. Makes no sense to me. You could spend just a little more than you would leasing and you could own a new truck and also would probibly be a tax write off.
     
  4. DennisF

    DennisF LawnSite Bronze Member
    from Florida
    Posts: 1,381

    If you buy the truck, you can depreciate it over a 5 year period. If you lease it you can write off the payments each year.

    Leasing is better if you don't plan on keeping the truck more than about 3 years and you can keep the miles under 12,000 each year. At the end of the lease you turn in the truck and either lease or buy another.
     
  5. RedWingsDet

    RedWingsDet LawnSite Gold Member
    from Detroit
    Posts: 3,556

    unless if you plan on buying it, you can lease it for 3 years, and buy it at the end. My step dad has an 03 dakota, and its only like $122 a month, its an SXT extended cab, its real nice, not a 4x4 and not a v8, but its nice, gets good gas mileage. and that is $122 a month with no money down, and its only 7k to buy at the end.

    But then again, this isnt a work truck, just his daily driver.

    Just some food for thought, and why some people lease, because they probably get it real cheap and can buy it real cheap. Hope this Helps.

    Merry X-Mas!
     
  6. forgop

    forgop LawnSite Member
    Posts: 145

    Why do people buy? Look how much it depreciates the minute you drive it off the lot. I just leased a 2004 Envoy in February that goes for over $32k. I did a 4 year lease this time and monthly payment comes out to $325. Total payments equal $15,600 and the residual purchase price is about $15k. I can drive the same vehicle now and pay less per month driving it and have to worry about no maintenance other than changing oil and rotating tires if I always lease. Also, when you buy a vehicle that is say $30k, you pay interest on that entire amount for the duration of the loan. With a lease, you pay interest only on the selling price minus the residual. Trust me, there are plenty of good reasons to lease as I just traded in a car that I was $8k in the hole on in June to get into a 2 year lease to get out from all the negative equity. If you can manage your miles, leases are good. Otherwise, they're bad.
     
  7. cgland

    cgland LawnSite Bronze Member
    Posts: 1,929

    We lease ALL of our vehicles.....it makes sense if you run a truck nonstop for 10 months out of the year. Our trucks get beat up (not physically, but mechanically) so at the end of the lease you hand the truck back and get a new one. It saves money in the long run as far as maintenance and repairs plus it really boosts your company's image if you always have nice, new trucks. The only advantage I can see about buying a truck is no payments after 5 years, but that's when built in obscelescence(?) takes over and you spend your monthly payment on maint. Just my .02 Everyone has a different opinion on this matter.

    Chris
     
  8. Evan528

    Evan528 LawnSite Silver Member
    Posts: 2,144

    Im a big fan of leasing. I own my work truck but this time around I leased my personal/estimate truck. Im the kind of person who gets tired of vehicles quick so the idea of getting a new vehicle every few years apeals to me. I also could not justify a 7 or 800 dollar a month finance payment considering vehicles depreciate as fast as they do.By By time my trucks needs new tires, brakes and other wear items it will be ready to trade in and wont be my concern. :waving:
     
  9. Moguy

    Moguy LawnSite Member
    Posts: 238

  10. forgop

    forgop LawnSite Member
    Posts: 145

    Another way to think of it is this-people get so hung up about putting money down on buying a car. What value is it for you to put money down on a depreciable asset? This even came from a finance manager at a car dealership!!!
     

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