We get it. It’s hard to resist the temptation of a shiny, new toy. And in some cases, leasing a new commercial truck is indeed beneficial for a fleet owner.
We’ve previously covered the pros of leasing a used commercial truck. Here’s when splurging on that sparkling-new commercial vehicle might make sense for you:
4 Reasons You Should Lease a New Commercial Truck
1. You Want that Warranty -- and to Stay on the Road.
If something goes wrong in the early going, you know your warranty will alleviate costly repairs. And new trucks have the latest technology that can help avoid accidents.
So while the initial purchase cost is higher on a new commercial truck, you’ll probably experience fewer maintenance issues, improved fuel economy and increased safety. That may mean less downtime than a used truck already saddled with more than a half-million miles of use.
Just remember: You’re at the mercy of the technician when you bring your truck to the shop. Larger fleets will often be first in line for repairs, ahead of your vehicle, resulting in downtime for you.
2. You Crave Pride and Productivity in Your Brand.
Perception and image is something no company should ever ignore. Your truck is a moving billboard and something of which your company should be proud. A new truck makes your brand stand out and look professional.
Additionally, newer trucks give your drivers the tools to be more efficient. With all the latest tech and safety features, you’ll have an easier time retaining drivers and hopefully make their jobs easier.
Just remember: You may end up with drivers complaining that they only want to drive new trucks.
3. You Get Exactly What You Want.
When you spring for a new commercial truck, you have the opportunity to spec it out to meet your needs. In some industries you need a very specific type of truck, so this is huge in expanding your options.
Almost all commercial trucks are built to order, and with a new truck you’ll get to pick out everything from the back end and engine to the chrome plating.
When you buy used, you’re buying a truck customized with someone else's best interests in mind.
Just remember: A new, custom-built truck isn’t built it one day, in many cases it can take several months of lead time.
4. You Get More Flexibility With Your Payment.
In the case of new commercial trucks, lenders are more willing to put a higher residual on a truck to soften your monthly payment.
The advantage of a balloon loan or higher residual is that it allows the borrower to keep his new truck payments within his monthly budget. In many cases the residual can even be refinanced at the end of the lease. This option gives the borrower access to a flexible interest rate.
Just remember: If you finance a truck with a high residual, you could end up owing more money than the vehicle is worth when you go to sell it. This is especially true if you plan on paying off your truck early.
Should You Go New or Used?
Every owner’s situation is unique. To sum things up, if you’re tempted to buy a new commercial truck, ask yourself:
- How much do I value a warranty and keeping long-term costs down versus an up-front investment?
- How much productivity gains do I expect to get from my workforce with a new truck?
- Do I need to have a state-of-the-art vehicle that is ordered to my exact specifications?
- Do I plan on paying this truck off early?