Fleet Leasing Vs. Buy? Construction Company

[Hammer]

Who here buys or leases there work trucks?What make the most sense? We don't need service bodies either. Probably could use 1-3 trucks.

Any input would be great!

 

[Bigbore500r]

Who here buys or leases there work trucks?What make the most sense? We don't need service bodies either. Probably could use 1-3 trucks.

Any input would be great

Your gonna need to give some info to get the right answer -

1) How long are you gonna keep them before they are swapped out
2) How many miles you you gonna drive them in that period
3) How hard are the operators on the vehicles? If they beat them up, your gonna pay thru the nose when you turn them in on a lease. Same with modifying them for work - ladder racks, etc.

 

[Hammer]

Your gonna need to give some info to get the right answer -

1) How long are you gonna keep them before they are swapped out
2) How many miles you you gonna drive them in that period
3) How hard are the operators on the vehicles? If they beat them up, your gonna pay thru the nose when you turn them in on a lease. Same with modifying them for work - ladder racks, etc.

1) How long are you gonna keep them before they are swapped out- Not sure? never leased before
2) How many miles you you gonna drive them in that period- 70 Miles a day roughly, some a lot less
3) How hard are the operators on the vehicles? If they beat them up, your gonna pay thru the nose when you turn them in on a lease. Same with modifying them for work - ladder racks, etc.

 

[Done-it-again]

Would not lease work trucks, the miles and possible damage would kill you at the end.

Buy and take SEC 179 deduction. Hopefully Trump brings back all deprecation in the first year..

 

[FENDERFAB]

Buy. We own 35 trucks for my company. Leasing is way more money.

We either buy new and finance or buy used and pay cash. Have a mix of some older trucks that are paid off and some new ones that are financed. Used to have the whole fleet GMC but now slowly switching over to ford.

 

[lbhsbz]

Check out the rental places used car sales....Hertz/Enterprise, etc...

They've got some pretty decent deals on basic trucks that are a year or 2 old and still have 1/2 the warranty left, for 1/2 or so the original price.

 

[90 Laveycraft]

Who here buys or leases there work trucks?What make the most sense? We don't need service bodies either. Probably could use 1-3 trucks.

Any input would be great!

Barco, new truck every year. Pricy though

 

[530RL]

Consider your cost of capital. If the lease rate is less than what you can borrow at, leasing may be better given all other things the same and vice versa if you can borrow at rates less than the lease rate.

Same with paying cash. If you can make 15 or 20 percent on that cash if it remains in the business, you are better off leasing or borrowing than paying cash assuming the debt and/or lease rate is below what you can make on that cash in the business.

 

[boatpi]

Buy them and buy them this year. This is the last year of the 60% depreciation.. run out four or five years sometimes four years is good because when you sell them, people can still get top rate financing, and they’re worth more.

 

[Orange Juice]

Who here buys or leases there work trucks?What make the most sense? We don't need service bodies either. Probably could use 1-3 trucks.

Any input would be great!

Have them buy their own, and give them a monthly to cover the payment. Cover gas, brakes, tires and oil changes. Any thing above that you compensate with salary. When they leave, theircar and payment go with them.

 

[Cdog]

I have a bunch of f350-650’s in our dealer network. Some with service bodies already.

What state are you in?

Mad dash till the end of the year for section 179 deductions.

 

[Hammer]

I have a bunch of f350-650’s in our dealer network. Some with service bodies already.

What state are you in?

Mad dash till the end of the year for section 179 deductions.

California

 

[Cdog]

California

Shoot me a PM on what you’re looking for and I’ll see what we can do. I’ll be back in the office on Tuesday

 

[HBCraig]

Many of my customers lease trucks and turn them back before 100k miles. That's the MO
Several of them.do that. Nice trucks too Ford platinums

 

[Kenboat]

I handle our fleet of 450 trucks/vans/suv's and always buy new or used.
We run the trucks and vans on the road for about 7 years then send to a big job site to die.

 

[lakemadness]

Talk to Enterprise Fleet Management. My business has about 50 trucks, for many years we purchased. Last year we moved to leasing from them. We still get the 179 deduct. So far it looks like it will pencil better than buying for us. Plus, Enterprise knows exactly when to turn em over and sell at the best value. Pretty sharp. We’ve turned in two that we owned and got more than I though, almost felt I was ripping someone off lol.

 

[NicPaus]

This is the best deal on a work truck. They have 2 with plumber bodies. I would buy if the discount was this big. They have had them for at least 6 months. Going to text my sales rep Monday and offer to buy if I can get this much off. I bought both my 3500s here for 15k off years ago. This truck is tempting as that's a great body with roll up. But I am set on a walk in. My 3500 has similar bed to this.

 

[riverroyal]

I gotta guy. Lol.
Really if need trucks let me know

 

[n2otoofast4u]

We are on Enterprise lease. Fortunately we have been for about 7-8 years so we were able to take advantage of the huge increase in used values while our new prices didn’t surge as much. 200+- vehicles. Pickups are mostly F250, white, 4wd, 2 models up from base. We roll complete fleet every 24 months. Typically we buy at such a deep discount they sell used for close to purchase price. For a while we were selling for more than purchase. It works well for us, but you have to be vigilant with your people to not fuck them up.

 

[Done-it-again]

Talk to Enterprise Fleet Maintenance. My business has about 50 trucks, for many years we purchased. Last year we moved to leasing from them. We still get the 179 deduct. So far it looks like it will pencil better than buying for us. Plus, Enterprise knows exactly when to turn em over and sell at the best value. Pretty sharp. We’ve turned in two that we owned and got more than I though, almost felt I was ripping someone off lol.

That’s interesting you’re getting 179 on a lease. I know you can write off the lease payment every month for the duration of the lease, but you cannot deduct the full cost of the vehicle.

 

[lakemadness]

That’s interesting you’re getting 179 on a lease. I know you can write off the lease payment every month for the duration of the lease, but you cannot deduct the full cost of the vehicle.

Capital lease.

 

[BingerFang]

Talk to Enterprise Fleet Maintenance. My business has about 50 trucks, for many years we purchased. Last year we moved to leasing from them. We still get the 179 deduct. So far it looks like it will pencil better than buying for us. Plus, Enterprise knows exactly when to turn em over and sell at the best value. Pretty sharp. We’ve turned in two that we owned and got more than I though, almost felt I was ripping someone off lol.

Everytime I run a calculation for clients on what they are getting charged for enterprises leasing it’s always twice as much as they were told. Also, they keep the titles hostage in order to stay in their maintenance programs which is wild.

 

[lakemadness]

Everytime I run a calculation for clients on what they are getting charged for enterprises leasing it’s always twice as much as they were told. Also, they keep the titles hostage in order to stay in their maintenance programs which is wild.

If you don't own it outright, yes the lien holder has the title. With all of the trucks we own outright we keep the title, that was our choice. They are still in the maintenance program. It’s penciled for us, maybe not for everyone.

 

[BingerFang]

If you don't own it outright, yes the lien holder has the title. With all of the trucks we own outright we keep the title, that was our choice. They are still in the maintenance program. It’s penciled for us, maybe not for everyone.

Interesting. From the 4 different deals I’ve worked on they stated Enterprise has to hold the title for it to be in their fleet maintenance program even if you own it outright.

 

[Blue Oval]

We do courtesy deliveries for several of the fleet lease companies. On the dealer side, Enterprise is always a 3 ring circus. Wheels do a good job. Most of them have been bought out. Local power company used a couple different lease companies. They now have went back to writing me a check. Not sure of the benefits.

 

[boatnam2]

My GF company uses wheels, we bought her old work car from them, went to pick it up HB dealer, wasn't there, 3 months later we finally pick car up in riverside and some huge car wholesale place after hours of phone calls and emails. last Car they didn't come get from us for 5 months so I drove it, saved a ton of miles on my F-250

 

[Blue Oval]

My GF company uses wheels, we bought her old work car from them, went to pick it up HB dealer, wasn't there, 3 months later we finally pick car up in riverside and some huge car wholesale place after hours of phone calls and emails. last Car they didn't come get from us for 5 months so I drove it, saved a ton of miles on my F-250

Local parts store was renting a truck, their delivery vehicle died. They had a fleet lease coming from Element I believe. No one from Element knew what to do to find their lost new truck. Not my job! I finally got pissed and spent two days on the phone and found it in Kansas. By the time it finally showed up, the truck turned 12 months old. Showed up with a broken windshield, the battery was shot and had a bolt in one tire. Courtesy deliveries can be a challenge. LOL

 

[CLdrinker]

Have them buy their own, and give them a monthly to cover the payment. Cover gas, brakes, tires and oil changes. Any thing above that you compensate with salary. When they leave, theircar and payment go with them.

I know of companies that do this but they try to make the car allowance as part of the pay.