Truck Leasing 1-2-3
If your smal business requires the use of a truck or vehicle, you can purchase or lease. If you are on a
tight budget, or don't want to put down a lot of money up front, you may want to consider leasing
There are many trucks and vehicles that are available for lease. These include medium and large duty
trucks, buses, dump trucks, vans, concrete pumps and flat bed trucks.
Industries that commonly lease vehicles include electricians, delivery companies, plumbers, contractors,
landscape companies and construction companies.
What are the advantages to leasing a truck vs buying? In general, commercial truck leases don't require
that you make a down payment up front. Therefore, leasing enables you to have more free capital to
work with in your business. You can also take advantage of multiple tax deductions, and it is easier to upgrade
vehicles when your lease is up.
While freeing up business capital for other opportunities in your business, you can take advantage of the
tax deductions that leased trucks and vehicles offer. In general, all expenses associated with a lease can be
deducted. This includes the costs you incur up front, your monthly payments, vehicle insurance, maintenance and
repairs.
Before deciding on a lease, however, it's a good idea to speak with your tax professional to see how your
business will benefit most. Truck leasing companies may also offer used commercial trucks for sale.
When leasing a truck, you want to consider which type of lease will be most advantageous for your company.
There are operating leases and capital leases.
An operating lease is where the lessor (vehicle
owner) transfers the right to use the vehicle to the lessee (borrower). When the lease term ends, the
equipment is returned to the lessor or the lessee may be able to purchase the truck or vehicle for market
value. Lease payments are deducted as an operating expense and do not affect the balance sheet.
A capital lease gives the lessee more benefits and responsibility and is therefore recognized as an asset
and liability on the balance sheet. Tax deductions include interest paid and vehicle depreciation expenses.
Truck Leasing Resources:
