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How many lease a plow truck?

Discussion in 'Commercial Snow Removal' started by Brian Young, Nov 26, 2007.

  1. Brian Young

    Brian Young PlowSite Veteran
    Messages: 3,382

    How many guys lease vs. buy a truck mainly used for plowing? There would be some definete advantages, 1st lower payment, 2nd alway under some type of warranty, 3rd always plowing in dependable equipment, every 3 years trade it in. Any thoughts?
     
  2. LwnmwrMan22

    LwnmwrMan22 PlowSite Fanatic
    Messages: 28,014

    I leased 1 truck once.

    Problem with leasing is, that if you keep it under the miles (usually 12-15k) you're not driving very much.

    I drove / drive about 20k miles / year, and ended up having to write a check for $2000 +/- for overmileage fees.

    Once you figure out how many miles you drive, then you can figure out if it's going to work for you. Also, you'll have to be careful that the leasing agent knows that you're going to put a plow on the truck.

    If they don't know, then you might have to pay extra for "abnormal wear and tear".

    Once you figure all that out, you'll soon realize just pay the same amount for 5-6 years and keep the truck at the end of the lease.

    For ME, it was the worst decision I had ever made.

    I had actually run new trucks long enough, and put enough into them, worked out good enough deals where I actually had "some" equity (if you ever really have equity in a vehicle) but then lost all that and had to start all over again.
     
  3. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,046

    It would be nice to get a new truck every 3 years but cost is way too much? A 5 year old truck is still very dependable, heck my 98 is still a good truck. I like to buy a new truck every 4 or 5 years and then get rid of the oldest one. It would really suck to have payments on everything you own. Most of the guys that I know that lease everthing, lose everthing when the economy goes bad. Financing machinery over a longer term is better then leasing IMO.
     
  4. YardMedic

    YardMedic PlowSite.com Addict
    Messages: 1,266

    Running a solo truck, I went this way for the current truck. As I'm not very auto savvy, I needed the dependability of a newer model not so much for landscaping but definitely for the snowplowing. When this lease is done, however, and I have a second truck in the mix to back up, then I'll probably be more comfortable with a slightly older truck. I do see the cost savings in running trucks that are a couple years old
     
  5. cincy snowdog

    cincy snowdog Senior Member
    Messages: 262

    i know a fellow who runs a landscaping co. in cinti who leases all his trucks,they come ready to go,f250 4x4 gas, with plow and salter,now they are taking the beds off and putting small flatbeds on too.believe it or not it is enterprise rentals,he has a nice fleet of about 20 or so ,also 1 tons too ,all fords.he has being doing this for years,not sure the cost but some of them trucks got a little beat and banged up,i think he buys them at the end then resells them, but little to no maintenace,all warranty i suppose.
     
  6. NJ Plowman

    NJ Plowman Senior Member
    Messages: 799

    I run a small fleet of late 80's GMC pick ups and would never invest in a new truck to plow with. After you get the initial cost of fixing everything that is wrong with an old truck out of the way, they become very dependable and extremely cheap to maintain each additional year. My NEWEST plow truck is a 1990 GMC, and it cost me a total of about $2500 to buy it and get it road worthy. I might put $1000 a year into it over the next 5 years. That equals about 2 or 3 payments for a year on a new truck.

    Not that this has anything to do with your lease versus buy question, just some food for thought on my way of thinking. I would buy over lease beacuse I would run the truck for at least 10 years before retiring it and amortising buying over leasing with 10 years of useable life buying would substantially better suit my needs.