What are the Different Steps to Acquire Semi Truck Financing?

Whether you are just launching your business and need a single semi-truck to get started, or if you are an established business looking to expand your fleet of semi-trucks, financing can be a straightforward and easy process if you consider the following steps:

1. Consider the immediate needs of your business. What type of semi-truck are you looking for? Sometimes the best business decision is to invest cautiously in a more affordable semi-truck while other times it benefits your business to invest in a semi-truck that has more of the latest technologies available. Whether this ends up being a new or used semi-truck depends on the end use and future plans of the vehicle. Will your semi-truck experience heavy use or light use? Will you be traveling over terrain that speeds up the wear and tear of the vehicle? There are many makes, models, and price ranges and the first step is to know what semi-truck or trucks will allow you to continue offering your goods and services on time and with a high profitability.

2. Know your true purchase power and calculate the total cost of ownership, repairs, maintenance, fuel, fees, insurance, taxes, etc. Think about the amount of capital you have to invest in addition to your cash flow. You must have enough for a down payment and understand that having good credit is a major factor in obtaining competitive semi-truck financing.

3. Contact a reputable semi-truck financing company and inquire about the best rates and financing terms that they are able to offer you with your available down payment and credit line. It is a good idea to comparison shop and obtain the best incentives possible. Many semi-truck financing firms can tailor the loan to meet your individual needs whether you are an owner-operator, maintaining a fleet, looking to lease, startup your company, or purchase a new or used semi-truck.

4. Understand the financing terms that are available to you through the semi-truck financing company. If you are leasing vs. purchasing, there will be various lease terms that differ such as having mileage restrictions, wear and tear limitations, and specific down payment, monthly payments, fees and end of lease regulations. When you finance the semi-truck rather than leasing you plan to have the vehicle longer than a couple of years. While you may not be planning to trade up to obtain the latest technology, you will also benefit from tax write offs and incentives for your company. Semi-trucks are meant for a long road life and have an excellent resale value, so there is a potential to earn back some of the value of the semi-truck minus depreciation at a later point in time.

5. When processing your semi-truck financing application you will need to access several documents and provide them to the financing firm in a timely manner to expedite approval. For example, current driver’s license, tax returns, bank statement, proof of ownership etc. Be sure to ask as many questions as necessary to understand all documents and financing terms before you sign on the dotted line.

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Various Factors to keep in mind while enquiring for Heavy Equipment Financing

When your business is seeking heavy equipment financing, there are several things that you will want to keep in mind to ensure that you are making the best choice for your company. What follows is a brief checklist that will help you get all of your questions answered throughout the financing process.

1. Decide what vehicle or vehicles you need for your business. There is an untold variety of heavy equipment available in the market from trucks to trailers, used for everything from towing to hauling to refrigerating, and you need to prioritize to get the equipment that your company needs most immediately. Although you may ideally want to add many more vehicles to your fleet, it will depend on your current financial situation as to just how much heavy equipment you will qualify for financing for.

2. Research the heavy equipment market to learn about all of the options for the particular heavy equipment that you need. There are vast differences in the capabilities and cost of various heavy equipment that depend on how much of the latest technologies and advances are being utilized for that equipment. Although it is nice to have the most comfortable and efficient equipment, rest assured that there are lots of reasonable solutions for the needs of all business financing ranges. Especially in the current transportation industry, there are options to lease or purchase both new and used heavy equipment. If you have decided to opt for a used piece of heavy equipment, be sure to have it inspected by a reputable mechanic who has experience working with that sort of equipment. This will allow you to determine if the equipment is in need of major or costly repairs, maintenance, etc. or if it has had a history of repairs or damage. If this is the case you may be able to negotiate a lower sales price.

3. One of the most important factors to consider beyond choosing the type of heavy equipment to finance, is to determine the type of financing that will benefit your business most. There are financing loans as well as leases, and each has their own pros and cons. With financing, your business will ultimately own the equipment, along with any cost savings that go along with having the vehicle paid off, as well as initial tax write offs and deductions. There are no mileage or wear and tear limitations with financing. Leasing has the benefit of allowing you to trade up every couple of years which is great for businesses that want to operate the latest in heavy equipment technologies. Leasing also allows you to avoid much of the depreciation of value and costly maintenance that occurs over the lifespan of the equipment. There are tax deductions available as well for companies that decide to lease. You will want to contact your financial advisor to calculate the costs and benefits of each option to determine which will be the most strategic for your business.

4. When contacting heavy equipment financing companies, you will want to learn as much as possible to compare more than one financing firm. Some of the factors to keep in mind are the rates, incentives, fees, and terms of the financing options which are usually based on the health of your credit. In addition, you can review the website of the company to review the financing company’s performance and testimonials of customer service. Even better is to get a direct referral from a respected colleague or partner. Carefully review all financing and lease terms before signing anything and do not be afraid to ask questions. A reputable heavy equipment financing company will be happy to lead you through the application and approval process.

TrucklendersUSA is a 30 years experienced commercial truck financing company providing semi truck financing , heavy equipment financing services. Contact TrucklendersUSA.com for all types of commercial financing.

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How does Heavy Duty Truck Financing help your Business Grow?

As the economy begins to recover and return to or surpass prior figures, your business may begin to feel the pull to expand in order to remain competitive in your area of the transportation industry. No matter what type of heavy duty truck you utilize for your business needs, there will come a time when you need to make the decision to invest further in your heavy duty truck fleet, or upgrade existing trucks. Although the recovering economy can make even the most solid of businesses a little nervous, rest assured that financing a heavy duty truck does make financial sense for nearly any business. Not only can it allow you to maintain operations, but it can actually also help your business grow. For instance, during the first few years of business operations there is usually a good amount of investment capital and lines of credit available to fuel start up and sustain the initial launch of business. However, once that initial surge of money is allocated, it is up to the business to continue generating profits that not only meet the business goals, but also allow the business to expand and advance beyond the competition.

By financing your heavy duty truck or trucks, your business will be able to purchase the newest heavy duty trucks available, with all the latest technologies and advances in communication, reliability, safety, fuel efficiency, and longevity. This means that your vehicles will last longer, perform better, and allow your business to operate at full capacity with fewer setbacks related to transportation issues. Financing also frees up additional cash flow that your business can allocate for further expansion, renovation, upgrades, and working capital. Even if there are no immediate needs for the available capital, having cash on hand for emergencies and last minute necessities is a smart business move. It provides an added safety net over an outright purchase of a heavy truck or trucks which can quickly deplete fiscal resources for your business. Another great benefit to financing your heavy duty truck is that your business can qualify for special tax write offs, incentives, and deductions that vary based on the type of financing you secure, in addition to the type of vehicle your business has purchased and the intended use of the vehicle. Although there are numerous benefits to financing your heavy duty truck, it is extremely important to crunch the numbers beforehand, ideally with the help of your accountant or financial advisor.

Take an honest look at the financial health of your business not just for the short term, but also the long term. Make sure that the amount of risk you have assumed by taking on additional debt is manageable. This will vary based on your current needs, and your purchase plans, credit, and access to additional capital. Remember that financing a heavy duty truck involves monthly payments and financing fees in addition to the actual operation of the vehicle, which will include for example, insurance, licensing, tax, registration, fuel costs, and any necessary repairs or maintenance.

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How to Judge the Best Commercial Truck Financing Firm?

No one cares more about the health and success of your business than you. When it is time to expand or upgrade your fleet of commercial trucks it can be confusing to find the best commercial truck financing firm. There is always the concern of whether or not you are getting the best rates and if the lender that you are working with truly has your best interest in mind. There are several ways to judge the best commercial truck financing firm.

First, do your research as much in advance as possible. If you find yourself desperate for a new or used commercial truck and you have not yet researched lending companies, you will be in too much of a rush to make a smart choice. The pressure fulfilling orders for good and services for your company may force you to jump into a financing agreement without really reading the fine print. Spend the time now to build a reliable and trustworthy relationship with a commercial truck financing firm and you will be on much more solid ground when the time comes to expand or upgrade your fleet. Some of the best ways to find a reputable commercial truck financing company is to ask your partners, colleagues, and associates. It is likely that they hold a wealth of information, both good and bad about the lending companies that they have worked with in the past. By the same token, they may be able to directly refer you to an individual by name at a particular lending company. This often gets you especially good service, since personal relationships and referrals are more established then choosing blindly, and tend to be built on legitimate trust and loyalty. Another great way to judge a potential commercial truck financing company is to participate in relevant transportation industry associations, professional organizations, groups, etc.

Through this participation, you may hear about some good companies through word of mouth. They may even come recommended by the organization or group. It is possible that this information is disseminated via their website links and/or resources page or in newsletters. Similarly, industry magazines often feature commercial truck lending firms that have gone above and beyond to receive industry distinction. Websites also exist to provide reviews of companies by customers themselves. Look for companies that have a long history or serving satisfied customers. If a commercial truck lending company is not reputable, it is unlikely that they will stay in business or have a continuous stream of customers. You can review the websites of the companies themselves, read testimonials, about their philosophies and business practices, and see if they have received any awards or distinctions. In addition, you can search the Better Business Bureau to see what letter grade the business has received, and whether or not any complaints have been filed or how they were resolved with the company. Finally, get to know companies in person by visiting their office if possible, or stopping by their booth at conferences or conventions. Even if you are simply asking questions by email or phone, the best commercial truck financing firms will be responsive, and happy to provide you with the information you need.

TrucklendersUSA is a 30 years experienced commercial truck financing company providing tow and semi truck financing, heavy equipment financing and more. Contact TrucklendersUSA.com for all types of commercial financing.

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Commercial Truck Leasing: Is this the Right Decision?

The economy is still in a slow recovery, and most businesses are playing it safe when it comes to expansion, expenditures, and investments. Even with the best advice from professional analysts, economists, and financial advisors, it is hard to know for sure when it is safe to make the leap and allocate a large amount of your company dollars. On the other hand, it is often necessary to assume some risk in order to expand enough to not only compete with competitors and maintain or expand your customer base; but also to ensure that your business practices and operation choices stay current with the latest advances, offerings, and technologies within your specific niche in the transportation industry. So how do you know when the best time is? This is where commercial truck leasing can be an excellent and safe bet that allows you to expand in a conservative and prudent matter, with less total investment and commitment. Leasing a commercial truck allows you to take advantage of the latest technologies available in the transportation industry, including updated equipment, to provide your goods and services quickly, efficiently, and safely with the quality your customers and partners have come to expect. Commercial truck leasing also allows you to avoid the costly repairs that often accompany the ownership of vehicles that will eventually have mechanical issues and become obsolete. 

By leasing you save time by not having to go through the time consuming process of selling your vehicle at a given point in time. For companies that are taking a conservative approach to expanding their fleet, leasing provides an opportunity to put less money down which frees up more operating capital and line of credit for your company to allocate wherever your business needs it most. By obtaining the best lease options, you can reduce company monthly fleet operation expenses as well. Leasing provides the added incentives of special tax write offs not available to those that purchase outright. 

The exact types of incentives available depend on your specific type of lease which is another great benefit of leasing. Two of the most common types of leases are open and closed ended leases. Open ended leases offer more flexibility with less mileage restrictions, wear and tear penalties, or early termination charges, for example. Closed end leases are most appropriate when businesses intend to utilize the vehicle in a more fixed and limited manner. Each type of lease has various credits and deductions associated with it, so you will want to seek advice from the IRS or your accountant. By leasing a commercial vehicle as opposed to buying, your company is not locked in to ownership, which allows you to trade up every couple of years so that you can continue to take advantage of all of these incentives, technologies and flexible options. Commercial trucks leases are available for nearly any commercial vehicle that you need for your business. In this sense, leasing a commercial vehicle is a smart choice for nearly all business solutions necessary in the current economy and climate within the transportation industry.

Get Commercial trailer leasing and financing at competitive rates at TruckLendersUSA.com. Company also deals in commercial trailer financing and truck financing.

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10 Steps to Financing a Used Commercial Truck

Whether your company decides to add a used commercial truck as a start-up operation or as an established business expanding your fleet, consider the following steps to make sure your used commercial truck lending process goes as smoothly as possible.

1. Decide what commercial truck or trucks fit the needs of your business. Do you need more than one type of used commercial truck for your business needs? Are you looking to purchase several of the same type of used commercial truck for your operation needs? Every business has different needs, and you may have to prioritize which used commercial trucks to purchase right away vs. those to save the purchase of for a later date. Setting this priority will assure that you don’t spend needless time researching vehicles that you end up not purchasing.
2. When choosing the type and number of used commercial trucks you plan to purchase, make sure you complete several calculations to make sure that you have the monthly cash flow to satisfy the actual costs of commercial truck ownership. This includes tax, insurance, monthly payments and fees, gas, repairs, upkeep, and maintenance, etc.
3. Find out how much commercial truck loan you qualify for based on your credit, years in business, previous paid off loans, and tax history. This in addition to your available capital and down payment will determine the purchase price range for a used commercial truck. Knowing your price range ahead of time will prevent you from investing in researching vehicles outside of your price range.
4. One of the benefits of used commercial trucks is they can be purchased in like new condition at a great value. Due to the high cost of gas, there are many used commercial trucks to choose from and if you take your time researching sales prices and comparison shopping, you may be able to negotiate a lower price. Keep in mind that just because a used commercial truck might not have all the latest add-ons, it can still be a reliable vehicle for your business needs.
5. Before you agree on a sales price make sure to inspect the vehicle that you are thinking of purchasing. Take it to a reputable mechanic that has experience working with used commercial trucks. If there are costly repairs or maintenance needed, or if the vehicle has had a history of repairs, you may not want to purchase that vehicle, or you may decide to get a print out of the report to negotiate a lower sales price.
6. Research used commercial truck lenders to find the best one for your business in terms of loan rates, terms, incentives, and lending options. The better your credit, the better your ability to negotiate excellent terms.
7. Have your down payment available and clear for deposit or transfer.
8. Assemble all the loan documents necessary for the lender such as driver’s license, tax returns, banks statements, credit report, business records, etc.
9. Review and sign all documents in a timely manner. Maintain good communication with the lender.
10. Enjoy your new used commercial truck!

This post is shared by TrucklendersUSA, which is a 30 years experienced commercial vehicle financing company offers heavy equipment financing, semi truck financing, used truck financing and more.

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What is the best Commercial Truck Lease to request?

The best commercial truck lease to request is one that fits the needs of your business. While you do not want to overextend your businesses capital and line of credit. You do want to continue to grow and expand your business in a strategic manner that will allow you to stay competitive in the current market. Here are some questions to ask yourself that will help you arrive at the best commercial truck lease to request:

• What sort of commercial truck lease are you looking for? Every business is different and you can lease any type of commercial truck available on the market. For example Bucket Truck, Dry Van Body Truck, Extended Cab Truck, Flatbed Truck, Food Truck, Spray Truck, or Utility Truck to name only a very few. You can feel confident as a business knowing that you will be able to access the commercial vehicle you need to get the job done.
• How many commercial trucks does your business need? Whether you are just starting your company and looking to lease a single commercial truck, or if you are experiencing a boom in business and need to quickly expand your fleet; the best commercial truck lease is one that will give you the flexibility to add the exact number of commercial trucks to your fleet to keep you delivering your products and services to satisfied customers nationwide.
• What is your credit score? The better your credit score, the better interest rate and lease terms you will be able to request from your commercial truck lease financing company. You are in the best situation to negotiate when you can show excellent credit, a successful and steady history in business, seamless bank statements that show steady cash flow, and perhaps even a prior history of paid off commercial truck loans and leases. Even better is to have an established and prior relationship with a particular commercial truck lender. In this case, you will be able to negotiate to request a commercial truck lease with the best incentives and cost savings for your growing business. With so many lease types, you will be sure to find one that fits the needs of your business.
• How do you plan to use the vehicles? Do you have a fixed set of operations, mileage, and fuel usage for which you plan to utilize your leased commercial truck? If so, you may be able to request special lease programs to optimize and manage costs, and keep your monthly payments and repair costs down. You will also want to decide if you plan to buy the commercial truck at the end of the lease, or trade up at the end of the lease for a newer commercial truck. You can request a lease that allows these options as part of your lease agreement.
• Crunch the numbers to see which tax incentives will be the most advantageous to your business and then request that type of lease. Whether you decide to be part owner as in a capital lease, or have no ownership as in an operating lease, you will benefit from accompanying tax incentives. Once you know the answers to these important questions, you will be able to request the best commercial truck lease for your company.

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Commercial truck loan and lease write offs for 2013

According to the IRS website, beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) for business purposes will be:

• 56.5 cents per mile for business miles driven
• 24 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

It is important to keep in mind that depending on whether your business has a lease or a loan for your commercial truck, you may have the choice between the standard mileage rate write off or the actual cost of using vehicle expenses which include cleaning, inside and out, waxing, depreciation, if you own, the vehicle, gas and oil, insurance, interest on a vehicle loan, lease payments, if you lease the vehicle, license fees, if substantially based on the value of the vehicle, motor club membership, parking and garage rental, personal property taxes, repairs and maintenance, tires and supplies, tolls, all of which will require you to keep detailed records. You must use the standard mileage rate in the first year the commercial truck is available for use by your business or you will no longer be able to choose the standard mileage rate in subsequent years. However, if you use the standard mileage rate the first year, you can decide in later years to go back and forth between the standard mileage rate and actual car expense contingent on meeting certain requirements. If you are unclear as to which option to choose, start by using the standard mileage rate the first year you use the car for business, which gives you more flexibility in choosing deductions for subsequent years. If you want to use the Standard Mileage Rate for a car you lease, you must use it for the entire lease period. In some circumstances, you are not able to opt for the Standard Mileage Rate, per the IRS website linked above:

• Use five or more cars at the same time (as in fleet operations)
• Claimed a depreciation deduction for the car using any method other than straight line, for example, MACRS
• Claimed a section 179 deduction on the car
• Claimed the special depreciation allowance on the car
• Claimed actual car expenses after 1997 for a car you leased, or
• Are a rural mail carrier who received a qualified reimbursement

Beyond the two deductions discussed above, your commercial truck may qualify for additional write offs based on depreciation. See Depreciation and Section 179 deductions IRS documents. The IRS is also explicit that a taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In some situations, transporting heavy or bulky tools, materials, or equipment to and from your workplace can even qualify as a commuting deduction only if they are considered "deductible equipment transportation" costs. Deciding which write offs benefit your company most is never a simple answer. You must carefully weigh your options, consult your accountant, and refer to IRS publications.

TrucklendersUSA is a 30 years experienced commercial truck financing company providing tow truck financing, commercial trailer financing/leasing services. Contact TrucklendersUSA.com for all types of commercial financing.

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Why should I write off my Commercial Truck finance Agreement?

Writing off commercial truck expenses is a standard procedure used as a deductible to reduce your businesses yearly tax obligations, and is a viable option for any business that utilizes their commercial truck for at least a portion of the time for business purposes.

There is no doubt that you should take advantage of this as a business to save money, especially for businesses with a larger fleet, as all those miles will add up to significant savings. Of course there are rules and regulations that detail what exactly can and can’t be written off when it comes to commercial trucks. For full details visit the IRS site on Car Expenses at http://www.irs.gov/publications/p463/ch04.html#en_US_2011_publink100033930.

In the case of deductions/write offs that specifically relate to commercial truck financing, it is allowable in certain situations and depends on many factors such as vehicle use, expenses, loan versus lease financing, depreciation, and the number of vehicles used for business. In the case of a commercial truck loan, it is allowable to write off that part of the interest expense from your commercial truck loan that represents your business use of the vehicle. If you utilize your commercial truck 100% for business purposes, then you can deduct 100% of the interest expense.

When writing off expenses relating to the operation of your commercial truck you can choose between the Standard Mileage Rate or the Actual Car Expenses, though not both, so if you qualify for both, it is important to calculate each option to decide which benefits your business most. If you choose to write off the Standard Mileage Rate, you cannot deduct lease payments or depreciation, maintenance and repairs, gasoline (including gasoline taxes), oil, insurance, or vehicle registration fees. If you own or lease your commercial truck, you can still choose the Standard Mileage Rate deduction. For a commercial truck you own, you must choose to use it in the first year the car is available for use in your business. After this defined period of time, you can choose to use either the standard mileage rate or actual expenses. If you want to use the Standard Mileage Rate for a car you lease, you must use it for the entire lease period. In some circumstances, you are not able to opt for the Standard Mileage Rate, per the IRS website linked above:

Use five or more cars at the same time (as in fleet operations),

• Claimed a depreciation deduction for the car using any method other than straight line, for example, MACRS(as discussed later under Depreciation Deduction),
• Claimed a section 179 deduction(discussed later) on the car,
• Claimed the special depreciation allowance on the car,
• Claimed actual car expenses after 1997 for a car you leased, or
• Are a rural mail carrier who received a qualified reimbursement

If you finance and operate five or more commercial trucks at the same time 100% for business purposes, you may qualify for the deduction for Actual Car Expenses which includes various expenses including lease payments. Beyond the two deductions discussed above, your commercial truck may qualify for additional write offs based on depreciation. See Depreciation and Section 179 deductions using the link above for more detailed information.

TrucklendersUSA is a 30 years experienced commercial truck financing company providing tow and semi truck financing, heavy equipment financing and more. Contact TrucklendersUSA.com for all types of commercial financing.

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What my benefits are to Leasing a Commercial Trailer?

In the current economic climate, competition is still fierce, and companies are opting to play it safe when it comes to starting up and maintaining their business.

At the same time, companies are looking for ways to maintain and expand their service reach to grow their business and forge ahead towards what is hoped to be more profitable times. This is why leasing a commercial trailer has become such a popular choice amongst both large and small businesses. Leasing, as opposed to buying, allows businesses to add to their fleet of vehicles with less upfront investment, less long term repair risk, less administrative hassle, less ownership responsibility and no obligation to purchase.

All while offering the flexibility to buy out the commercial trailer at the end of the lease, meanwhile taking advantage of tax write offs, freed up capital to devote to operations, and maintaining an open line of credit. While the total for buying a commercial trailer outright may at first appear to be less than the cost of leasing, the above incentives can quickly add up to make leasing more advantageous. Many businesses choose to lease commercial trailers for the benefit of having the option of trading up every two to three years for newer commercial trailers with the latest technologies available in the field. These same companies appreciate never having to worry about costly repairs and vehicle depreciation, which is inevitable when businesses hold on to commercial vehicle inventory year after year. Certainly, the lower monthly costs that go along with leasing attract companies looking to quickly expand their fleet. When new businesses launch, there can be an untold amount of changes within the first few years as they find their ground and get established within their market area. Leasing a commercial trailer is a perfect solution for a new business in this stage as there is no long term obligation to the individual leased vehicle, or an entire fleet of leased vehicles for that matter.

This sort of flexibility allows a new business to be agile enough to expand or scale back as growth allows, leaving the business in a much less risky position. Most lease companies also offer fixed rates that do not fluctuate, which can help businesses manage costs. With so many configurations of lease options available for commercial trailers and other commercial vehicles, a lease financing company can tailor the lease to meet the specific needs of your company. One of the most sought after aspects of a lease agreement is to include a maintenance or fuel management feature which can help further manage expenses. In addition, during times of lean operation budgets, many companies consider leased commercial trailers an expense. When considering a lease, some helpful questions to ask yourself about your business are how long you want to use the equipment and what you plan to do with the equipment once the lease has been satisfied. Based on your tax situation, your balance sheets, cash flow, and lines of credit you can find a lease agreement to obtain the commercial trailers that are right for your company and its future growth.

Get Commercial trailer leasing and finacing at competitive rates at TruckLendersUSA.com.  Company also deals in commercial trailer financing and truck financing.

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Why commercial vehicle leasing is a better option than buying for small businesses?

When choosing to add new commercial vehicles to your small business fleet, there are pros and cons to both buying and leasing. What follows are some of the benefits of leasing a commercial vehicle rather than buying:

When buying a commercial vehicle for your business you make a down payment (usually of at least 20%), and make monthly payments (if you set up financing through a commercial vehicle lender). In this scenario you must pay sales taxes, and you are able to sell or trade the vehicle at some point in the future. This gives you a certain amount of flexibility as a long term owner of the vehicle, in addition to the cost saving of not making monthly payments if you retain the vehicle for a number of years after it is paid off.

One of the inherent risks here however, is the potential for mechanical failure and costly repairs that will likely occur as the vehicle ages, in addition to the fact that newer technologies will inevitably cause some amount of obsolescence in the vehicles capabilities over time. When leasing a commercial vehicle, on the other hand, you are only paying for the cost of the vehicle that you actually utilize during the lease period. Depending on the lease incentive you may be able to save money by avoiding down payments and other up-front or monthly lease related fees. Some states also do not require sales tax to be paid for leased commercial vehicles. Some of the most immediate benefits are the fact that you can replace your commercial vehicle every two to three years and take advantage of all of the latest technologies that are developed, in addition to the fact that with a newer vehicle there is less risk of incurring the costs of mechanical repairs and less long term responsibility for commercial vehicle maintenance.

Additional benefits to leasing are that monthly payments are tax deductible and some leases include coverage for repair and maintenance of the vehicle. Since the vehicle can be turned in for an upgraded model at the end of the lease, it removes the time consuming process of trying to sell the vehicle, whereby a business may lose a good amount of their initial investment due to the depreciating value of the vehicle. Keep in mind, however, that leased vehicles may have mileage limits, and charges when mileage has been exceeded, which may or may not fit in with the needs of your business operation. Also, leased vehicles cannot be customized to provide specific services, or for advertising purposes the way that vehicles that are purchased can be. For many businesses, however this is not a factory when choosing to lease a commercial vehicle. One of the biggest benefits of leasing is to have the vehicle covered under warranty which, even with an extended warranty, would eventually expire if purchasing a vehicle. In the end, while leasing a commercial vehicle rather than buying a commercial vehicle may not be the right solution for all businesses, it no doubt offers an enticing amount of cost savings, and worry free incentives for most businesses, most of the time.

This post is shared by TrucklendersUSA, which is a 30 years experienced commercial financing company offering commercial vehicle leasing, commercial vehicle financing and more.

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What are my benefits to Leasing a Commercial Truck?

Making the best choice for your business is your top priority, and sometimes it can be difficult to know which choice really is best. When it comes to leasing a commercial truck for your business rather than buying one, there are pros and cons to consider. In most cases, the benefits are significant enough for many businesses to choose this option again and again for their commercial vehicle needs.

One of the most obvious benefits of leasing a commercial truck is that your company will have much less upfront investment, which will allow your business to keep more cash on hand and preserve your line of credit to use for operation expenses and other investments instead of costly maintenance of a commercial vehicle fleet. Every lender will have different requirements to qualify for a lease, though most should offer both Open-End and Close-End leases to suit your company needs. Open-end leases have the benefit of no mileage limitations, no penalties for early termination after the initial year lease, and no penalties for excess wear and tear. This is where the savings really benefit the company as compared to buying a commercial truck and incurring costly and inevitable maintenance expenses. Closed-end leases have more restrictions relating to maximum mileage usage, increased liability, responsibility for tax fees, and less coverage beyond normal wear and tear, for example. However, this option can be a benefit for companies who have specific and planned usage parameters for those vehicles, in addition to the fact that like open-ended lease agreements, businesses can take advantage of having zero obligations at the end of the lease agreement while also avoiding the value lost due to depreciation.

Other benefits to leasing a commercial truck are the option with some fleet leasing companies to participate in a fuel management program that helps track fuel spending with odometer readings, potential discounts, and preventative maintenance. There are also tax write offs available such as the Standard Mileage Rate or Actual Car Expenses, in addition to interest and depreciation write offs. These vary based on vehicle use, expenses, loan versus lease financing, and the number of vehicles used for business for example. When leasing a commercial truck, two lease types are available, an operating lease and a capital lease. You will want to work with your accountant to determine which one is the most beneficial to your business.

With an operating lease, the business owner is only paying for the right to use the vehicle, and therefore has no ownership, which means that the vehicle is considered an operating expense, and is not factored in to the balance sheet. This may save your business money in one area, however you will not be able to claim depreciation or interest as you would be able to with a capital lease, where you have part ownership of the commercial truck. Although there are a seemingly overwhelming amount of options for leasing a commercial vehicle, there is sure to be a solution that benefits your business.

Get financing for commercial trucks on competitive rates at trucklendersusa.com, which is a commercial truck leasing and financing company of USA.

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