Leasing plow trucks?

[AB Lawn Care]

I was told by my equipment dealer that he would never lease a truck for work.He deals with alot of landscapers like myself.Is he right?I like the idea of low payments and just trading it in after 3 or 4 years.But I heard that if you get even a tiny scratch on it they make you pay for it when you trade it in.On the other hand if you sell your used plow truck you lose $$$$$$$ big time becouse not to many people want to pay for a beat up plow truck even if it is only 5 years old.What do you guys think?<p>from:Adam<br>AB Lawn Care<p>THANKS!<br>

 

[GeoffDiamond]

I leased a truck once when leasing was hot back in 97. The reason i leased in was because i had bought 2 97 350s and a 250 hd that year. So i leased a second 250 hd with a plow. Ok depending on the brand of truck depends on the leasing policy. I know chevy is a little better to lease from than ford. Ok back in 97 when i leased the 250 hd this was how it worked. I leased a 97 F 250 Hd with 9' Diamond plow, 4X4 auto 351 ect. Anyways at the end of 24 months you own the plow, you can keep it or turn it in with the truck. Now when you turn it in with the truck you don't get any $$ money for it. So i was stuck with a 9' blade that was 2 years old, it now sits on my kubota loader. With chevy they keep the plow at the end of the lease, you can lease a body plow or anything from chevy. As for turning the truck in, i kept the miles low enough, so no problem. The body was in good shape, they allow some minor dings and dents. I think for allows X amount of body work per body body part. Leasing is ok but if you are going to buy the truck, buy it up front not at the end of the lease. It is cheaper to buy it up front. Only just for your infro that truck with plow had a purchase price of 27,000. For me to lease it for 2 years cost me 8,000, almost a 1/3 of the purchase price. I won't lease again, i think buying is a better idea.<p>Geoff

 

[SLSNursery]

We checked into leasing vehicles a few years ago, but it was no good for us. In order to set up a truck with a plow and dump body it qualifies as a commercial. The commercial lease rates were set up more for van bodies or cube vans, or cars and we didn't really qualify (they were set up for large fleets). One dealer wanted me to jump on a regular lease, but the fine print did put a lot of restrictions on return condition, mileage, etc. (He didn't read the fine print!). Plus after determining depreciation write off and other factors, purchasing with financing seemed to be best. We lease other equipment, like a big chipper, and a tow motor. This stuff has a long useful life, and after 48 months or so, we own it with a 1 dollar buy out. If you run the numbers lease vs. purchase, you might answer your own question. Vehicle leases have funny terms and wierd ends (open vs. closed end). It sort of puts you at odds against the dealer if anything isn't perfect upon return - then they get to negotiate the value, take the vehicle, resell it and essentially double dip. <br><p>----------<br>Phil Grande - Soundview Landscape Supply - http://members.aol.com/slsnursery<br>Ivy League Landscaping - http://members.aol.com/scagrider

 

[Lazer]

Upfitting a truck for our line of work is expensive. Our average non-dump upfit is over $8,000.00 for a dump AND plow upfit we're spending almost $13,000.00 w/ toolboxes. No, we're not getting screwed, we just have all the additionals: Clutch-pump hydraulics, rear plows, push bars, V-plows, Flashers, etc.<p>Anyway, we'd not turn a truck in after 2-3 years beacuse of the huge upfit equipment depreciation. Sell it outright, maybe.<p>Leasing could make sense for 3 years to conserve cash and increase wright-offs. Then you buy that truck for the buyout price. <p>You pay the same amount in the end, but you conserve cash for the first 3 years.