For many small businesses, leasing trucks can be a good alternative to buying, particularly if you need several trucks at once. With a leasing agreement, you have the option to upgrade to a newer model at the end of the lease, which can be an attractive offer if you put a lot of miles on the truck. You may also have the option to buy the truck at the end of the lease, if you desire. Before you sign on the dotted line, however, here are six questions to ask about leasing a truck.
1. What is the down payment? Before leasing trucks to companies, dealerships will require a down payment. In many cases, the down payment on a lease will be smaller than the required down payment to buy.
2. What is the monthly payment? Monthly lease payments are often smaller, as well, but you are likely not building any equity in owning the truck.
3. What fees are being charged? Vehicle leases sometimes have extra fees you might not be expecting. Be sure to ask for a complete breakdown of everything you’re being charged.
4. What are the lease terms? Lease terms can vary from 12 to 48 months. As you’re evaluating the lease terms, be sure to find out what happens if you decide to buy the vehicle out before the end of the lease, as well as if the lease is cancelable.
5. Are there mileage restrictions and overage charges? Many leases restrict the number of miles the vehicle can be driven during the lease term without incurring overage charges. Overage charges are paid at the end of the lease, and can be quite significant if you’ve gone well over the allotted mileage.
6. What is the buyout price at the end of the lease? When you lease a vehicle, you should be told a predetermined buyout price for the end of the lease. This is the price you’ll pay to purchase the vehicle at the end of the lease, which can then be financed. This is important to know if you think you’ll want to keep the truck when the lease is up, but it generally means you’ll pay more overall for the truck than it would have cost to buy it outright.
For businesses who are strapped for cash flow or who don’t want to keep trucks for a long time, leasing can be a good option. Check with several dealers experienced in leasing trucks to companies in Texas before you commit to ensure you’re getting the right deal for your business.
