Due to their numerous benefits, lease-to-own purchase agreements have gained immense popularity among truck drivers. Lease purchase trucking companies offer drivers a unique combination of flexible advantages and the opportunity to buy the truck in the future.
These programs are especially appealing to novice truck drivers who may lack the funds or strong credit history needed to buy a truck outright. Let’s delve into the workings of lease purchase programs and explore some of the top lease purchase trucking companies in the United States.
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What are Lease Purchase Programs?
By participating in a lease purchase program, you have the opportunity to rent a truck for a specific duration, typically ranging from two to four years. At the end of the lease period, you can either return the truck or acquire it by adhering to the predetermined price and sales terms outlined in the original lease purchase agreement.
Engaging in a lease purchase program can effectively reduce your initial expenses as well as the monthly payments you will be responsible for when you eventually decide to purchase the vehicle. Moreover, the residual value of the truck is determined upfront, eliminating any uncertainties that may arise when you are ready to make the purchase. Considering these advantages, a lease purchase can prove to be a highly favorable choice. However, it is crucial to thoroughly comprehend the terms and conditions of the agreement. Always ensure that you carefully read the entire contract and consult with a legal professional if you have any inquiries. In general, here are some key points you should be aware of.
Types of Lease to Own Programs
The lease portion of your agreement may be a capital lease or an operating lease. Both have their own advantages and disadvantages. A capital lease is treated as an asset, and it must be listed as such at tax time. However, because it is an asset, you may be able to claim depreciation on it.
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An operating lease is not considered an asset. All advantages and disadvantages of ownership rest solely with the company that leased you the truck. However, you may be able to claim the rent you pay as an operating expense.
Note that both types of leases can dramatically affect your taxes, so it is important to speak to your tax advisor before making a decision.
How to Purchase the Truck
When the lease term concludes, you will be given the opportunity to either buy the truck or return it to the company. If you decide to purchase it, you can refer to the original agreement for the purchase price and terms. You may consider making a slightly lower purchase offer, as it could potentially result in some savings. Keep in mind that the leasing company may not be willing to accept a significantly reduced offer, but any amount saved is better than none.
Choosing a Lease Purchase Program
The best lease purchase programs deal in high volume. They typically have a set value for the truck at the beginning of the lease and clear, easy-to-understand policies. Look for a truck with a high residual value, generous mileage restrictions (or none at all), and no charges to you for wear and tear. Beyond that, figure out what is important to you. Do you want to paint the truck? Put decals on it? Install additional equipment? Some lease-to-own trucking companies let you do these things, while others do not. Of course, once you buy the truck, you can do whatever you like. During the lease period, though, you must honor the trucking company’s policies.
Top Lease Purchase Trucking Companies
While the decision of which lease purchase trucking company to go with is highly personal, here are some picks for the top lease purchase trucking companies in the United States:
Bay & Bay Transportation: Independent contractors can earn great money while working toward owning your own truck. If you’re looking to move your driving career into high gear, contact Bay & Bay today to learn more about their Equipment Lease Trucking Program.
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Western Express: Now offering a wide variety of new and used trucks, so contractors can find the one that is right to call your own. With no money down, no credit check and no balloon payment, this walk-away lease among best ownership programs in the trucking industry.
Schneider: In the trucking business since 1935, Schneider has grown into a full-scale transportation and logistics company. With offices in 44 states and a variety of truck types, Schneider is a go-to choice for a lease purchase agreement.
CRST Expedited: With more than 50 years in the trucking industry, CRST has customer service for its drivers down to a fine art. The company is actively recruiting drivers looking for a truck they can lease to own. Drivers can transition to owner-operators with their no credit check, no money down program, and enjoy massive fuel discounts, guaranteed home time, and even the opportunity to hire a co-driver from their fleet.
Lease purchase agreements provide a fantastic chance for drivers to embark on the journey of becoming an owner-operator. Nevertheless, it is crucial to be well-informed when choosing a trucking company. Renting a truck is a pivotal decision that can significantly broaden your career prospects. Therefore, it is essential to carefully consider all your options before hastily making any decisions.
If you are in the market for a truck driving job or lease purchase agreement, CDLjobs.com is your one-stop resource. Simply apply today, and watch the offers roll in from trusted trucking companies around the country.
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