So you’re thinking of starting a hotshot trucking company, eh?
That’s a fantastic idea. But you may be stuck with this nagging question:
Should you buy or should you lease? Which is the more profitable and practical option?
Worry no more. To assist you in making your decision, we’ve listed the benefits and drawbacks of each option so you can determine which one is ideal for you:
- You get assurance of ownership
- You can control your own time and loads
- You can modify it according to your liking
- You often shoulder all your expenses, including insurance and other obligations.
- Your truck will depreciate eventually and may be more costly, especially if used both as a personal and a work vehicle.
- A brand-new truck is expensive. You need to make a substantial down payment to have a low monthly payment.
- It’s more affordable and has fewer costs
- The leasing company will cover almost everything (insurance, maintenance, etc.)
- You have more flexibility while having less commitment
- You always have the option of buying the truck eventually if you really love it
- It can be a great way to save money in the short term (less long-term responsibility)
- Ownership is not guaranteed with leasing
- You will have to divide the profit between yourself and the leasing company
- You have no control over the truck since it is under the leasing company’s jurisdiction
- You are bound within a contract, and you may incur some liabilities if you breach it
We’ve laid out for you the advantages and disadvantages of buying vs leasing. In the end, it’s your decision to make. However, to help you decide, here is our general recommendation:
Leasing a vehicle would be a good place to start if you’re a new hotshot trucker because it doesn’t require any long-term commitment. You can try out hotshot trucking for a while by leasing a vehicle. See how it goes. If you’ve decided that the hotshot trucking business is right for you and you have saved up enough money, then it might be the best time to buy your truck.