Commercial Truck Leases vs. Loans

Commercial Truck Leases vs. Loans

These offer better options than traditional loans when it comes to acquiring the amount of money needed to finance a truck. Below is a discussion on the various aspects of commercial truck leases and loans.

Commercial Truck Leases vs. Loans

Commercial truck financing involves two major sources— a commercial truck lease, and a loan for the same. The latter is similar to a car loan or a home loan. Once you have completed the payment, you own the truck.

There are 2 types of leases—capital leases and operating leases. In an operating lease, you rent the truck throughout the term of the lease. The truck does not appear on your balance sheet. Monthly payments are lower than loans, but you will not own the truck at the end of the loan.

Capital leases are similar to loans although they are known by a different name. With these, you have to make monthly payments for the truck. Towards the end of the lease, you can own the truck for a small sum like $1. This may not make a big difference for a loan, but it is called a lease for bookkeeping/tax purposes.

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