Lease purchase programs have become incredibly popular for truck drivers, and for good reason. This type of agreement blends the advantages of leasing with the option to purchase the truck at a later time. Lease purchases are particularly attractive to rookie truck drivers, who may not have the capital or the credit rating to purchase a truck upfront. Here is a look at how lease purchase programs work, along with an overview of some of the best lease purchase trucking companies in the United States.
What are Lease Purchase Programs?
A lease purchase program allows you to rent a truck for a specified period, typically two to four years. At the end of the lease period, you can either return the truck or purchase it for the price and sales terms that were spelled out in the original lease purchase agreement.
A lease purchase program can lower both your upfront costs and the monthly payments you will owe when you purchase the vehicle. Additionally, the residual value of the truck is determined at the beginning of the contract, not at the time you are ready to buy. For these reasons, a lease purchase can be an excellent choice. Still, it is important to understand exactly what you are signing. Always read the full contract carefully and ask a lawyer if you have any questions. In general, though, here are some things you should know.
Types of Lease Purchase Programs
The lease portion of your agreement may be a capital lease or an operating lease. Both have their own advantages and disadvantages. A capital lease is treated as an asset, and it must be listed as such at tax time. However, because it is an asset, you may be able to claim depreciation on it.
An operating lease is not considered an asset. All advantages and disadvantages of ownership rest solely with the company that leased you the truck. However, you may be able to claim the rent you pay as an operating expense.
Note that both types of leases can dramatically affect your taxes, so it is important to speak to your tax advisor before making a decision.
How to Purchase the Truck
At the end of the lease, you will have the option to purchase the truck or return it to the company. If you choose to purchase it, you will have the purchase price and terms in the original agreement to refer back to. However, it is always worth making a slightly lower offer. Depending on the policies and current inventory of the trucking company, you might be able to save some additional money. Note that the company is not likely to accept a much lower offer, but any savings is better than none.
Choosing a Lease Purchase Program
The best lease purchase programs deal in high volume. They typically have a set value for the truck at the beginning of the lease and clear, easy-to-understand policies. Look for a truck with a high residual value, generous mileage restrictions (or none at all), and no charges to you for wear and tear. Beyond that, figure out what is important to you. Do you want to paint the truck? Put decals on it? Install additional equipment? Some lease purchase programs let you do these things, while others do not. Of course, once you buy the truck, you can do whatever you like. During the lease period, though, you must honor the trucking company's policies.
Top Lease Purchase Trucking Companies
While the decision of which lease purchase trucking company to go with is highly personal, here are some picks for the top lease purchase trucking companies in the United States:
Panther Premium Logistics: Work for yourself, explore the country, and set your own schedule. With Panther's exclusive lease purchase program, you can own a new 2023/2024 tractor with no money down, no minimum credit requirements, and flexible financing options. Payments are deducted from your weekly settlement for the specified term and then the tractor is yours.
Schneider: In the trucking business since 1935, Schneider has grown into a full-scale transportation and logistics company. With offices in 44 states and a variety of truck types, Schneider is a go-to choice for a lease purchase agreement.
CRST Expedited: With more than 50 years in the trucking industry, CRST has customer service for its drivers down to a fine art. The company is actively recruiting lease purchase drivers with a bevy of benefits, including a no credit check, no money down program, massive fuel discounts, guaranteed home time, and even the opportunity to hire a co-driver from their fleet.
If you are in the market for a truck driving job or lease purchase agreement, CDLjobs.com is your one-stop resource. Simply apply today, and watch the offers roll in from trusted trucking companies around the country.
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