Full Service Leasing

Despite all the tax incentives for a business to purchase and own their trucks, truck leasing has never been more popular. President Trump reinstated the 100% Bonus Depreciation to purchase new or used assets, however businesses are still leaning towards leasing for many reasons. For starters, the regulatory responsibilities with fleet maintenance can be too much to handle internally.

A Full-Service Lease allows you to outsource this piece of your business and insulates you from vehicle downtime. After working in the leasing industry for nearly 10 years, I noticed that every situation was different. However, the common theme was that my clients wanted to control their delivery schedule and fulfill their clients’ orders in a timely manner. In other words, trucks are a “necessary evil” of their business.

I was able to help companies put their first truck on the road, and helped others transition into leasing. It was always a great day when we delivered a new truck to their facility. We spent months discussing truck spec’s, financial structuring, and services needed to help their distribution. In those conversations, it was clear that truck leasing had many other benefits.

First, it’s your company and your brand. It builds trust with your clients and shows them that you are properly investing in your business. My favorite phrase was, “anyone can put a truck on the road. But how do you plan on maximizing this asset to grow your business?” The truth is, your trucks say a lot about your brand and your company. They are the image that everyone sees on the highway, so they should be safe, clean, and driven properly.

Second, you can build a truck from scratch. Every business has unique delivery demands and you’ll want to spec the most efficient truck for your operation. Be aware, ti can be confusing when obtaining multiple quotes from leasing providers. It does help to have an expert on your side of the table, which ensures that all proposals are correct and apples-to-apples. And, you can incorporate the latest safety features and driver comforts to help with driver retention.

Financially, leasing the almost the same as owning a fleet of trucks. The majority of the time, these contracts are structured as operating leases, so the invoices are a business write-off. Additionally, the preservation of capital allows you to better invest your money. Instead of spending capital on depreciating assets, you can invest in fleet software. For example, a routing software might even show the ability to downsize the number of trucks in your fleet.

Truck leasing is a great fleet management strategy. It does require a long-term vision, because these contracts are both asset-based and service-based. Many of the leasing providers can bring a comprehensive approach, but it’s best to handle these discussions during the negotiation process My last suggestion is to look for a provider that you can partner with long-term. By taking a comprehensive approach, you’ll see an improvement in your business fluidity.