Renting or Leasing Trucks – Make Your Choice
When you are looking for a car or truck, first decisions you need to make is if to lease or buy. Even though buying the vehicle might provide certain benefit there are a few situations when lease return trucks are the practical option. Let us check out how:
Monthly Rental Fees
When you are planning to use this vehicle on the short-term basis, then leasing gives you that benefit of paying the low monthly payments than buying, and where you should pay the total truck value. You are given complete flexibility of terminating the payments when it has served the purpose and saving you some money in the long term maintenance expenses. When buying the vehicle, its value depreciates thus paying just for the time that you want it becomes the affordable & flexible choice.
Looking at the Down Payment
If you choose to lease or buy a vehicle, down-payment is generally required. Suppose you have very less down payment saved, then leasing will be the right option for you. Or you will have to get the loan for financing the truck purchase. Value of your vehicle loan is totally based on total cost of your vehicle, minus down payment & trade-in value. So, when you are renting, you are paying only the depreciation that happens during its lease term (generally three years), and fees. At an end of your lease term, you just return the truck to the dealership.
Find the Maintenance Costs
As the truck ages, it can show several signs of wear & tear. When you’re leasing, you don’t have to worry of the long term maintenance expense. You just turn in an old vehicle & start the lease on the newer truck model. You have an option of selecting the make & model that you prefer as per your needs. You must check the lease contract as you might be charged if wear & tear appears “excessive.”
There’re some tax benefits of leasing. Suppose you are using truck for your business, you might be qualify for the tax deductions based over how much time that truck was used for the business operations. For getting the tax benefits for the business use you need to prove your car is driven 50% of time for the business purposes.
If you’re planning to get other loans, leasing the truck gives you “off-balance sheet” that might not add to the borrowing ceiling for any other loan qualifications.