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2500 W. Reno Ave., Oklahoma
City, Oklahoma 73107 • (800) 749-9998 or (405) 232-3551
Financing vs. Leasing
Why Finance?
Depreciation is an annual reduction in the value of an asset over its estimated life. By allowing truck “owners” to claim a portion of their truck’s value as an expense each year, depreciation helps reduce an owner’s federal tax burden.
| WHY FINANCE? | WHO FINANCES? |
| Tax Benefits of Ownership | First Time Buyers |
| Building Equity | Used Truck Buyers |
| Long-Term Ownership | Owner/Operators |
| | Fleet Customers |
Why Lease?
Leasing allows a customer to pay for only the portion of a truck that is used. In a lease agreement, the customer (the lessee) pays a monthly payment to the owner of the truck (the lessor) over a specified period of time. The lessee has possession of and right to use the truck, while the lessor retains ownership (the certificate of title) to the truck.
| WHY LEASE? | WHO LEASES? |
| Accounting/Tax Purposes | Large Fleet Buyers |
| Lower Payments / Cash Flow | Owner/Operators |
| Minimum Down Payment | Business Customers |
| Capital Conservation | Municipalities |
| Frees up Bank Credit | |
| Retail Financing | Leasing |
| Down Payment | Cap Cost Reduction usually not required |
| Customer owns truck | Lessor owns truck |
| Customer pays for entire truck | Pays only for use of truck |
| Higher Monthly Payment | Lower Monthly Payment |
| Ownership Tax Benefits | Tax Write-off for Leasing |
| Retail Financing | Leasing |
| First Time Buyers | Experienced Owner/Operators |
| Used Truck Buyer | Non-Trucking Business Customer |
| Most Owner Operators | Small-to-Medium Size Fleet Buyers |
| Fleet Customers | Large Fleet Buyers |
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