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Is it best to lease a truck ??
#5554078
06/16/16 09:29 AM
06/16/16 09:29 AM
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Joined: Nov 2009
Posts: 129 MI
Big Skunk
OP
trapper
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OP
trapper
Joined: Nov 2009
Posts: 129
MI
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Ideas on a lease over buying a truck for your business ? I am finding a lot of down time and repair in GMC truck after 36 months.
STOP AND SMELL THE COON BAIT
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Re: Is it best to lease a truck ??
[Re: Big Skunk]
#5555866
06/18/16 06:02 AM
06/18/16 06:02 AM
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Joined: Aug 2012
Posts: 69 Central Ohio
Dirk Shearer
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trapper
Joined: Aug 2012
Posts: 69
Central Ohio
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If you are seriously working this business without a very concentrated service area, you will probably want to buy rather than lease.
I have a '99 F250 with 525000 miles on it, changed tranny at 471k. A '09 f150 with 200k plus, original tranny. A '10 GMC Sierra with 200k plus, 2nd tranny. And a '09 Ranger with 75k. The Ranger is our Goose work truck and back up vehicle. Bought it used a couple years ago with under 20k on it.
You'll probably put too many miles on to make leasing a viable option.
Dirk E. Shearer, President The Wildlife Control Company, Inc. "Cause if you won't put your real name on it, you probably shouldn't hit send"
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Re: Is it best to lease a truck ??
[Re: Big Skunk]
#5555952
06/18/16 08:58 AM
06/18/16 08:58 AM
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Joined: Jan 2013
Posts: 32 OH
Eric Arnold
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trapper
Joined: Jan 2013
Posts: 32
OH
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Leasing a vehicle today is not like it was years ago. Now, you need to put the vehicle on your books as an asset and depreciate it. So instead of being able to claim payments and receive a tax benefit by doing so, you now have to treat it as a purchased asset and for tax purposes choose either mileage or expenses, just like with a vehicle you've purchased.
If you would still desire to lease don't look at just the miles and "penalty" fee for going over, look at deposit AND return fees (we just got hit with a $400 restocking fee on a leased KIA that was returned) and more importantly with what is considered "normal wear and tear." For the KIA, a three year lease wear and tear was defined as scratches and dents under half inch. Meaning, there could be additional "repair" fees for anything on the outside larger than 1/2" along with even more fees if the inside is "to dirty" or damage to the upholstery. So if you lease a truck and add a cap or ladder rack, the dealership may declare any mounting holes, scratches or rust stains as unacceptable damage and send you a repair bill for it.
Eric Arnold Publishing Editor W.C.T. Magazine Editor The Fur Taker Magazine
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Re: Is it best to lease a truck ??
[Re: Big Skunk]
#5556492
06/18/16 11:32 PM
06/18/16 11:32 PM
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Joined: Jan 2013
Posts: 32 OH
Eric Arnold
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trapper
Joined: Jan 2013
Posts: 32
OH
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Bob I can't take credit for this one. I was discussing this with my wife who you know is a CPA and she was letting me know of the changes that happened a year or two ago and the impact it will have on businesses (which is why we didn't lease her company car this time but bought it). She has an upcoming article in the July/August issue of WCT Magazine that discusses the new department of labor overtime law that takes affect December 1 of this year and the topic of purchase/leasing equipment (trucks, aerial lifts, dump trailers, computer equipment, etc.) may be something I can ask her to write about later on as well if subscribers would like to see something along those lines.
Eric Arnold Publishing Editor W.C.T. Magazine Editor The Fur Taker Magazine
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Re: Is it best to lease a truck ??
[Re: Big Skunk]
#5560091
06/23/16 06:45 AM
06/23/16 06:45 AM
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Joined: Nov 2009
Posts: 129 MI
Big Skunk
OP
trapper
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OP
trapper
Joined: Nov 2009
Posts: 129
MI
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Thanks for all the info. A lot of very good points. I understand about the US made, have a GMC. My first one and last one. Only 89,900 miles on it and lots of replacement parts.
STOP AND SMELL THE COON BAIT
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Re: Is it best to lease a truck ??
[Re: Dirk Shearer]
#5562811
06/26/16 08:00 AM
06/26/16 08:00 AM
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Joined: Dec 2006
Posts: 11,165 Central NC
traprjohn
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trapper
Joined: Dec 2006
Posts: 11,165
Central NC
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You'll probably put too many miles on to make leasing a viable option. Nope, then you never have anything to show for your money spent...just like renting a house/apt.
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