Time To Become An Owner/Operator? Why Buying Your Semi Is Better Than Leasing
Posted on: 27 July 2018
If you're finally at the point where you can become an owner/operator, it's time to start thinking about the truck. The biggest decision you'll be faced with is whether to lease or buy your truck. Many owner/operators will tell you that leasing your truck is the way to go. However, they may be forgetting about the benefits that are to be had by purchasing a truck instead. Before you jump on board with a lease for your new truck, take a look at four advantages you'll receive from purchasing instead.
Build Equity in Your Own Rig
If you're thinking about leasing a truck, you should consider the equity you'll be missing out on. When you lease a truck, you never reach the point of ownership, which means your monthly payments aren't building up any type of equity. However, when you purchase your truck, every payment you make will be building up equity; equity that you can use as trade-in value when it's time for another truck. By purchasing your truck, those monthly payments will be reducing the amount you owe. With a lease, you'll be making monthly payments with no end in sight.
Enjoy Lower Insurance Costs
When it comes to your new truck, you'll be responsible for insurance whether you buy or lease. However, your monthly premiums may be considerably higher with a lease. That's because you don't have a vested interest in the truck you're driving. When you purchase your truck, you'll enjoy lower insurance premiums.
Take Advantage of the Tax Breaks
When you're an owner/operator, you're responsible for your own success. Because of that, you want to find as many ways to save money on your operating costs as possible. One way to do that is to purchase your truck. Purchasing your truck will allow you to take advantage of tax breaks that aren't available when you lease your truck.
Avoid Unfavorable Mileage Restrictions
If you're going to be a long-haul trucker, you can't afford to have mileage restrictions on your truck. Unfortunately, that's exactly what you'll get when you lease. Most leases come with unfavorable mileage restrictions that limit the amount you can drive your truck. If you go over those mileage limits, you'll be faced with costly penalties when you turn your truck in at the end of the lease. When you purchase your truck, you won't need to deal with those mileage restrictions, which means you'll be free to drive wherever, and whenever, you choose. Get a good deal on Freightliner trucks for sale and you'll never be restricted by milage.
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