When looking at heavy duty truck sales, there are several options for a prospective buyer—new or used, buy or lease? A prospective buyer would be faced with these questions by a salesperson and, like everything else in trucking, the choice depends on many factors.
New Versus Used
The cost of purchasing a new truck is typically higher but maintenance costs are much lower and there is usually less downtime. New trucks have the latest technology that can save on fuel and other operating costs and help avoid accidents, as well as clean up the environment. All heavy-duty diesel engine makers now use a selective catalytic reduction system that handles nitrogen oxide in the exhaust which reduces the stress in the engine.
One of the most important factors to consider in heavy duty truck sales with regard to purchasing a new or used truck is the application. Those who plan to put a lot of miles on their trucks during the year should consider a new truck while someone who puts 2,000 miles a year on a truck to haul crops for two months and then stores it for ten months is better suited for a used truck.
Purchase Versus Leased
Heavy duty truck sales are usually financed even when trucks are purchased. It makes sense for both large and smaller motor carriers to purchase their trucks as interest rates are currently low. In addition, truck dealers typically offer good trade-in allowances, so those who have enough equity in their trucks can use their trucks to be traded in to cover the down payment. Those who sell heavy duty trucks also may be affiliated with various financing companies and banks to help secure loans for their customers, thereby facilitating a purchase.
Those for whom trucks are tools to get their products to the market, such as consumer-goods manufacturers and merchants, leasing can make more sense. By not purchasing a truck, these customers can use the capital for store remodeling, production machinery, or many other uses that support the core business of a company.
Credit is now more available than it was during the Great Recession and there are many leasing companies in the industry, at the national, regional and local levels that are great sources of loans and leases.
So, whether to buy new or old, purchase or lease, there are many factors and options to consider.
