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.

This post is shared by TrucklendersUSA, which is a 30 years experienced commercial truck financing company offers commercial truck lease, loans, heavy equipment financing etc. at competitive rates.

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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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Few things to consider while selecting a Trailer Leasing Partner

Once of the best pieces of advice for any company, small or large in considering a trailer leasing partner is to do your research well ahead of time, before you need that new or used commercial trailer. When a business does not plan ahead, and finds themselves needing a commercial trailer last minute, it can become a desperate situation where the business needs the trailer immediately to stay on schedule and under budget in order to keep satisfied customers, while at the same time feeling pressured or forced into making a quick decision without being fully informed of all the options and which will be most beneficial for the company. Here are a few simple factors to consider when planning ahead for leasing a commercial trailer:

• Evaluate the operation needs of your business. Consider your current fleet in addition to your expected future fleet needs. This varies depending on whether your business is large or small and how quickly you plan to expand your business. Granted, some businesses experience a sudden increase in profit and customers and thus need to expand their fleet as soon as possible. In general however, reviewing business averages should give you a good idea of how many commercial trailers you may need to add to your fleet within the next 6 months. Leasing as opposed to purchasing will free up more capital within your company to be used for other operating or investment expenses, and can be tax deductible.

• Researching several commercial trailer leasing partners is essential to finding the most reputable company to work with. Various search engines allow you to access review websites that may contain valuable customer reviews and feedback. Some companies have customer feedback links on their websites, in addition to awards, professional designations, memberships to industry associations, etc. The best commercial trailer leasing company will be active in the field, and have a good presence online, and in person via conference booths, in addition to traditional phone and email communication. A good commercial trailer leasing partner will be open to answering all of your questions in a courteous and timely manner, without hesitating to give you honest advice and guidance throughout the lease process.

• Contact a commercial trailer leasing company for assistance in calculating the numbers, especially to arrive at exactly what the short and long term savings are to your company when leasing a commercial trailer vs. buying or renting. You should expect to save money by avoiding costly maintenance and repairs that are often associated with older commercial equipment, in addition to irrecoverable expenses related to equipment becoming obsolete. One of the biggest incentives of leasing a commercial trailer is the ability to easily upgrade to the latest equipment.

• One of the last, but not least important considerations is to make sure that you are arranging the commercial trailer lease that suits the unique and current needs of your business. With so many lease options and terms available, for example buying your commercial trailer after leasing, or selling/buyback for your leased trailer, it is not a decision to be made under duress. No one cares more about your business than you, so do your due diligence ahead of time and connect with a reputable commercial trailer leasing partner now to plan well for your businesses future.

TrucklendersUSA is a 30 years experienced commercial trailer financing company providing commercial trailer leasing & financing services at very competitive rates. Contact TrucklendersUSA.com for all types of commercial financing.  

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