If you are in the market for a semi truck, you may be wondering how to lease one. Leasing a semi truck can be an excellent option for business owners who need to get their goods from point A to point B but don’t want the hassle of owning and maintaining their own vehicle.
In this blog post, we will discuss the process of leasing a semi truck and provide some tips to make the process as smooth as possible.
Choose the Right Clause for Your Needs
One of the most important decisions you’ll have to make when leasing a semi truck is which clause to choose. There are three main clauses:
Buyout
This clause stipulates that you will have the right to purchase the truck at the end of the lease agreement for a predetermined price. Therefore, including this option in your lease agreement will significantly increase your monthly payments.
Full Service/Maintenance Lease
Under this clause, the truck leasing company will be responsible for all maintenance and repairs on the truck. This can be a great option if you don’t have the time or resources to perform these tasks yourself.
However, you’ll want to be sure the type of repairs included are clearly defined in the lease agreement and that they won’t be coming out of your pocket.
Also, ensure you’re aware of the expiration terms. For example, some companies’ full-service lease expires after a certain number of miles. So, if you’re a high-miler, this type of lease might not be the best option.
Terminal Rental Adjustment Clause (TRAC)
The TRAC lease agreement stipulates that you can buy the track at the end of the leasing period. This clause is different from the “buyout” clause in the sense that you pay more to get full ownership of the semi truck, and you also have the option of upgrading to a better semi truck at the end of the period.
Other differences include:
- You and the leasing company decide on the amount you’ll pay for the truck at the end of the leasing period if you choose to purchase it (this is referred to as the residual value).
- The residual value will determine your monthly installments. If the company tells you the residual value, this type of lease is known as an “open-ended” lease. On the other hand, if you decide on the residual value, it’s known as a “close-ended” lease.
- If you have no interest in buying the semi truck at the end of the period, it goes into action.
- If the semi truck sells for a higher amount than the residual value, you get a check, and if it sells for less, you’ll have to make up for the difference.
It’s crucial to understand these three clauses and their implications before entering into a lease agreement.
Ensure You Have Everything the Leasing Company Needs
Before entering into a lease agreement, you need to ensure you have everything the leasing company needs.
Most semi truck companies need the following information:
- Any customizing expenses
- Your financial statements. These must be prepared and certified by a public accountant.
- The type and number of semi trucks you need to lease
- Your proposed repayment schedule
The semi truck leasing companies may also want various documents, including copies of your driver’s license, proof of insurance, and a credit report, among others. Ensure you know which documents the company needs you to provide before beginning the application process.
Find a Leasing Company That Meets Your Needs
It is critical to find a semi truck leasing company that meets your needs. Otherwise, you may end up having to pay for things you don’t need or that don’t make sense.
You need to choose a company with the right equipment and financing options to grow your business. You must also ensure that they offer excellent customer service, as you’ll be working with them often in the future.
To find a reputable semi truck leasing company, begin by checking out reviews on third party websites. Also, check out their website for more information about their lease products, terms of service, and customer service.
It is also wise to talk to others who are already leasing semi trucks or their own equipment. They might be able to give you some insight into what companies they have used and whether they were satisfied with them.
What Leasing Companies Should I Steer Clear Of?
Now that you know what to look for in a leasing company, you may be wondering what you should steer clear of.
Be cautious about any lease agreement with:
- Hidden costs: Find out if there are any undisclosed fees before signing the dotted line.
- Unclear terms: You need to ensure that you understand what is included in your lease agreement and how much it will cost over the length of your contract.
- No maintenance cap: Honest and reliable companies will have a limit on how much they will charge you for truck maintenance.
- Mileage restrictions: If you drive a lot, find out if there are any mileage restrictions and the penalty if you exceed them.
- Excessive return fees: Make sure you know the costs if you need to terminate your lease early or renew it.
Once you’ve identified a reliable company and chosen the best lease agreement for your needs, you’re ready to sign the dotted line, get your semi truck, and hit the open road!
Conclusion
The truck leasing process can be daunting, but it doesn’t have to be. By following these tips, you can ensure that you find a reputable and reliable company that will provide you with a truck that meets your needs. Happy truck leasing!
