Is It a Good Idea to Lease to Own a Truck?

Being a successful owner operator means that you have to make wise business decisions. One of the most crucial decisions involves the question: Is it a good idea to lease to own a truck?

Having your own truck is the first step to starting an owner operator business. But is it a good idea to lease to own a truck?

In this article, we will talk about the pros and cons of leasing to own a truck.

What Is Leasing?

Leasing means paying a third-party provider to use the products you need. You must take note that when you go into a leasing agreement, you do not own the product. You can only use it.

In this case, the product is a truck. By leasing a truck, you get to use it in any way you want. However, you do not have the ownership rights to it.

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What Is a Lease-to-Own Agreement?

As its name implies, a lease-to-own agreement involves leasing to own something.

In this case, you lease a truck for a certain period of time. As you do this, a part of your monthly fee goes towards paying the purchase price of the truck.

Over time, the purchase price decreases. At the end of your lease-to-own agreement, you have to pay a final payment. The exact amount depends on the lessor.

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Pros of Leasing to Own a Truck

Operating with a low budget.

If you have a tight budget but want to start your journey as an owner operator, leasing to own a truck helps.

By doing this, you get to become an owner operator without spending too much.

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‍Not being fully responsible for the truck.

Getting into a lease-to-own agreement lets you learn the ropes of the profession.

It also lets you get loads as an owner operator without being responsible for everything related to the truck (e.g. insurance, maintenance).

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‍You do not need to pay a huge amount upfront.

Unlike purchasing a truck in full or through a loan, you do not have to pay a huge amount upfront.

You get to start your owner operator business with as little as a few hundred dollars.

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Cons of Leasing to Own a Truck

You need good credit.

Some lessors do credit report checks before leasing their trucks. They probably won’t lease a truck to you if you have bad credit.

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‍You usually have to pay a huge fee at the end.

The end of a lease-to-own agreement means that you tackle a final payment. This payment is usually high. However, some lessors can make it more affordable for you.

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