Have you been a truck driver for years and are thinking about branching out on your own as an owner operator? Or maybe you have recently obtained your CDL and want the flexibility of being in business for yourself. Either way, you are likely looking into the options that are available for leasing semi trucks. Leasing semi trucks can be a way to ease into an owner operator career without the up front investment of purchasing a rig outright. However, you may be finding yourself confused about the requirements to qualify for leasing, as well as the terms that are available to you.
Basics of Leasing
One of the first things to consider when leasing semi trucks is the basics regarding how the process works. You may be wondering if you need perfect credit, or how much you will be required to pay up front. While the exact terms and requirements of the lease agreement will vary based on the company you work with, you can generally expect to receive a new or gently used truck, however leasing an older model can significantly decrease the total cost of the truck. Some companies also offer terms with balloon payments, allowing you to make smaller monthly payments in exchange for a large payment at the end of the loan.
If you have bad credit, you can also expect to pay a higher down payment, with some companies requiring 25% of the purchase price before they will offer financing. There are companies that offer semi trucks for lease without a credit check, but you can expect to pay higher interest rates and monthly payments, which can increase the total price required for outright ownership.
As with any business, leasing semi trucks will come with costs that are required outside of the monthly lease payments. Examples of these costs include:
- Escrow accounts for needed repairs and maintenance
- Any required permits and license plates
- Cargo, deadhead, or bobtail insurance
- Fuel surcharges
- Any excess mileage fees
- Parking costs
- Tickets, towing fees, or tolls
While it may seem daunting, leasing semi trucks in order to become an owner operator can be an exciting and lucrative career path. In fact, some owner operators can earn close to $100,000 per year as of 2016. If you are considering going into business for yourself, contact a dealer like Decatur Trailer Sales & Service Inc or others in your area to determine if leasing semi trucks is the right option for you.Share