Refrigerated Box Truck Financing

Refrigerated Box Truck Loans vs. Refrigerated Box Truck Leases

Do you want a loan or a lease? Here are some of the things you should consider.

Benefits of a Refrigerated Box Truck Loan

• You own the truck once the loan is paid. This allows for more customization for special needs. Once you own the truck, you can keep it as long as you need it or sell it to recoup some of your expenses.
• You can potentially deduct the interest you pay on the loan and claim depreciation on the value of your truck, which can reduce your taxable income. Talk to your tax adviser.
• You can enjoy lower costs long-term. While a loan costs more at the start, once you have paid off the loan, you don’t have to pay lease-end fees and can keep the truck until it is no longer cost-effective to run.
• You can build equity. If you buy an expensive truck, then you can use it as collateral on other loans or sell it.
• You get a stronger sense of security from having control over your business assets.

Benefits of a Refrigerated Box Truck Lease

• You don’t have to pay a down payment and can often lease without a good credit score. You only have to pay a security deposit or the first monthly payment.
• Your lease payments will be more predictable, and won’t be affected by changes in interest rates. This makes it easier to manage your cash flow.
• You can opt for a lease that includes routine maintenance, making maintenance costs more predictable and saving the time you would spend on arranging and scheduling service.
• You can switch to a new truck every few years, benefiting from newer technology, safety advancements, and increases in fuel efficiency.
• You can often select a lease term to suit your business needs.
• You don’t have to worry about payments, routine maintenance, depreciation, etc. This lets you focus on running your business.

There’s a lot to consider when trying to decide between a lease and a loan. The differences between the two options can be broken down more simply into three key topics: ownership, upfront costs, and long-term benefits.

With a loan, you own the truck once you have paid it off, and can further customize or sell it. With a lease, you have to return it in good condition, although you might have the option of getting a new one.

Upfront costs are a big factor when you choose to own. You’ll pay a substantial downpayment, typically at least 20%. With a lease, you only have to pay the security deposit or first month’s lease in advance.

The long-term benefits of a loan are the ability to benefit from appreciation or deduct depreciation. With a lease, you don’t build that equity, although it can be cheaper.

Ownership is the main advantage of a loan, while lower costs are the primary advantage of a lease.