Getting started in the trucking business as an independent owner can be very challenging. This is mainly because you need a substantial cash injection to get the business off the ground. Whether you are starting with one truck or a fleet of 20 one way of easing your financial stress is by contacting a leasing truck dealer to discuss your options.
What does it mean to Lease Return Truck?
The transport and logistics business in the United States can be quite lucrative. However, the initial investment into this type of business can be quite costly, especially when it comes to purchasing trucks; it`s no wonder only a few people start the business as independent truck owners. However, even though trucks are expensive, you can still go into the market by leasing return trucks.
A lease return truck is a contractual agreement between a lessor (business owner) and the lessee (a leasing company) that allows the business owner to utilize the vehicle for an agreed time (lease term). In return, business owners are required to pay the lease Company a negotiated fee either monthly or yearly.
Benefits of Leasing Return Trucks
Leasing trucks mean minimal commitments on your part. Therefore, it`s much easier and cheaper to end your lease agreement when scaling down the business than it is to sell off a truck as an independent truck owner.
Truck owners incur extra costs beyond the initial purchase price. Some of the hidden costs that independent truck owners have to deal with include;
-- Emergency repairs
-- Ongoing maintenance
-- Hiring maintenance staff
-- Recruiting and retaining drivers
-- Fines for violations of traffic and safety regulations
-- Licensing and taxes
-- And costs of standby vehicles
The leasing company will usually cover these extra costs, so you don`t have to worry. Of cause, the charges will be factored in on your monthly leasing fees but, you end up saving money in the long run.
Easy to Get Started
Lease return trucks dealers charge monthly fees as opposed to large upfront cash to acquire the trucks. This means that you can start your business with a tight budget and after that start turning in a profit. You can also negotiate a lease to own deal with your lessee. The dealer can charge a higher monthly fee, but as soon as you successfully finish your lease term, you will be the outright owner of the truck.
Two Things to Consider When Leasing Return Trucks
If you are looking to lease return trucks, here are some tips to help you get a good deal:
- Compare various Lease Deals
When making a comparison of lease deals, pay attention to the maintenance terms, buy-out options, millage limits or other restrictions that the leasing company may include in contracts.
- Lease Termination Terms
Before signing off on a truck lease contract, make user you understand the terms regarding termination of the lease. Usually, you`ll be obligated to pay a certain fee or penalties to get out of the contract before the terms expire. Make sure you agree with the stipulated fees or penalties before committing to the lease terms.
Leasing return trucks is an excellent way to get started in the transport and logistics business. With low upfront fees, you can spread your initial investment across different areas of the company to ensure you start your company on the right track.