Using company-specific trucks and vehicles in your business offers many advantages. Whether you’re looking to reduce your employees’ driving expenses or need a fleet for long-haul trips, having company vehicles on retainer is a great way to improve your efficiency and operations.
If you’re planning to add one or more trucks to your company bill, you likely wonder whether you should get a truck lease or an auto loan. Below, we’ll discuss the benefits of both leasing and purchasing with a loan and how auto financing from Auto Loan Hub can simplify the process. Keep reading!
Advantages of Leasing
Leasing is a viable option for companies that don’t want a long-term commitment to the trucks in their fleet and need more flexibility. The key advantages of leasing include the following:
- More flexibility with model upgrades: You can switch out your truck with a newer model without taking out a new lease.
- Lower upfront and monthly costs: You only pay for the truck value used during the duration of your lease. If your company decides to switch to a different leasing agent or suspend the use of trucks altogether, there is no balance owed.
- Lower maintenance costs: Many leasing companies will take care of maintenance and repairs of their fleets, reducing the concern of unexpected expenses on the road.
Advantages of Loaning
If you have more long-term needs for the trucks in your fleet, a loan offers several advantages that protect your interests while fulfilling your company’s objectives. These advantages include:
- You own the vehicle: Once your company’s loan term ends, you maintain full ownership of the trucks in your fleet.
- Asset management control: Trucks obtained by loan can be modified, traded in, or sold according to what works best for your company.
- No mileage limit: Companies can continue to drive their loaned trucks regardless of how many kilometres accumulated.
- Lower total cost: As you continue to pay off the balance owed on your truck, the total cost of ownership is often lower than what you pay in a lease.
What to Consider for Leasing vs Loaning
Whether you decide to lease or own the trucks for your company largely depends on how your day-to-day operations work and the reason why you need company vehicles. Does your company’s work cover a hefty number of kilometres per year? If so, this can limit your options as far as leasing, as many leasing agents have a kilometre cap. If your fleet faces an excessive amount of wear and tear, such as being damaged in an accident, you may also be subject to certain penalties.
If your company operations involve a lot of driving, ownership may be the best way to go. You won’t have to worry about how many kilometres you cover, and you’re free to sell your truck at any point during or after the loan term. Further, owning your company truck gives you a business asset and more options for generating revenue.
How Auto Loan Hub Simplifies the Loan Process
At Auto Loan Hub, we make applying for auto financing a breeze. We aim to provide a hassle-free process for our customers, from securing their loans to finding the best truck model for their company’s needs, shipped right to their doors. If you need to add more trucks to your company fleet, we’re your go-to partner!
Visit our How It Works page to learn more about our process.
