Monitoring the cash flow is crucial for startup businesses. For instance, your new business needs some trucks to deliver your products and services; you need to invest in a truck. However, what is the most cost-effective way to invest in them?
Typically, a new business will go for leasing as it requires fewer upfront expenses. But the difference between buying and leasing a truck is fairly slim. Moreover, a lease is not an investment – it is a sugar-coated rental arrangement.
As a new business owner, you can save your capital by acquiring quality pre-owned trucks instead of leasing. All you need is to find a truck dealer with quality used trucks for sale. If you’re not convinced enough, here are the benefits of buying a pre-owned truck rather than leasing a new one.
It Offers a Variety of Options
Leasing from a dealership will offer you the same brand. While most people often choose brand new trucks, even the best brands encounter some unexpected problems. For instance, some vehicles have issues that cannot be detected even if you test drive them.
On the other hand, buying a used truck will let you choose from various models and brands. You can choose to buy a model based on its age, condition, and capabilities. A two or three-year-old truck with good quality ratings is a great option if you can’t afford a brand-new model with the same features. You may also buy a different brand and see which works best for the business.
Used Trucks Have More Features
As a business owner, you may choose a vehicle with less or no luxury features to save your capital. Moreover, you may think that your employees don’t need these features while working.
However, there are instances that the business manager or the owner may be the one who is going to use the truck, especially for a startup or new businesses. With that in mind, these luxury features may be needed.
Buying a pre-owned truck could give you a chance of finding one that has a premium trim. These trucks may have features such as navigation, brake assist, defrosting side mirrors, and built-in Wi-Fi. A truck with these safety features prevents accidents, decreasing the rates on your insurance.
Investment Possibilities for Pre-Owned Trucks
Leasing a truck will indeed help you save money as a startup business owner. However, you do not own the truck you are paying for. When the lease ends, you have no rights in the truck. You may choose to convert the lease to a loan, but that’s another expense.
Moreover, leasing various trucks at the same time will have you return the vehicles at the same time, too. Then you’ll have to pay expensive rates for your business’ logistics needs again.
However, owning the trucks will let you spread the expenses out. Owning will allow you to trade the trucks in, depending on the situation. Keep the trucks that are useful and trade the ones that you don’t need anymore. This will help spread your expenses and possibly earn some cash to aid your bottom line.
Moreover, if the trucks are new enough, they may qualify for a new vehicle interest rate and warranty. The fair interest rate and low price will give you lower monthly payments, not to mention that you are paying toward ownership.
Overall, buying is better than leasing. But make sure that you are buying from a reliable truck dealer that offers used trucks for sale.
The truck keeps some of its value, giving you a chance to regain a part of your investment when you trade it. With that in mind, if you are thinking of leasing some trucks, try to search for the used truck market first. This way, you may be able to find a better-quality truck for a lesser price.
