ownership of truck
- Thread starter denny2010
- Start date
chefdennis
Veteran Expediter
1st you need to do a little homework because you can lease and own the unit at the end of the lease for a set value of as low as 1 dollar or a set amount that is stipulated in the lease...normally not more then a total of 3 payment, but it can be anything inbetween also....now that is not craved in stone. some will depend on the type of truck you are considering...and "residual values"....but you can own the unit at the end of some leases....
2nd there are different tax situation to each...and only your accountant can help you figure which is better for "YOUR" situation, each of us have different situation in regard to taxes
3rd is most often a person has to have better credit to lease then to buy....
2nd there are different tax situation to each...and only your accountant can help you figure which is better for "YOUR" situation, each of us have different situation in regard to taxes
3rd is most often a person has to have better credit to lease then to buy....
Last edited:
chefdennis
Veteran Expediter
what kind of truck??? CV, Sprinter, ST, TT??? Each have their own unique situations as to buying or easing also...well the CV & Sprinters group together as do the ST & TT....but there are different situations for them...
nightcreacher
Veteran Expediter
First,a lease purchase is the same as buying the truck in the eyes of the IRS.You take the depreciation and interest off your income.If you have the truck on a lease,no buy out,then you can write off that payment every month.Is one better than trhe other,just depends.Most of the time,if you do a lease from a company such as Ryder,or Penske,the lease can also be set up with a srvice agreement.
Leases became popular in theindustry because at the end of lets say three years,instead of trying to sell the truck,or trade for a new one,you just take that truck and get another truck every three years.Usually,the first 3 years a truck should be trouble free,so changing trucks every three years makes a good policy.I use to do that my self,not lease,but buy,ansd trade every three years.THe truck I have now has just turned 7 years old.It's been paid off for a while,but the repairs cost me as much as my old payment.THere isn't any depreciation or interest on a note to write off,but the 2000 a month that I pay for repairs,is about the same as a payment on a new truck would be.The advantage of having the truck paid off is there are months that there are no repairs.
Leases became popular in theindustry because at the end of lets say three years,instead of trying to sell the truck,or trade for a new one,you just take that truck and get another truck every three years.Usually,the first 3 years a truck should be trouble free,so changing trucks every three years makes a good policy.I use to do that my self,not lease,but buy,ansd trade every three years.THe truck I have now has just turned 7 years old.It's been paid off for a while,but the repairs cost me as much as my old payment.THere isn't any depreciation or interest on a note to write off,but the 2000 a month that I pay for repairs,is about the same as a payment on a new truck would be.The advantage of having the truck paid off is there are months that there are no repairs.