One of the most important questions many fresh owner-operators face is deciding whether to rent or lease a trailer for their semi. Either of these options has its own benefits and is appropriate in a certain situation. While a lot of truck drivers own a semi-trailer, a vast majority of new owner-operators chooses to lease. Leasing is a favorite option for many looking for alternatives to truck trailer financing with bad credit.
There are several points to consider when choosing between these options, including the length of need, the funds at your disposal and your credit score, the state of your equipment etc.
In this article, we will cover the basics that should help you choose the best option for your needs.
Renting a Trailer
Renting a trailer is great for owner-operators who need this piece of equipment for a short period of time, for example for a single contract or during a two-month period. While renting is a great solution short-term, in the long run, renting is not the greatest financial move for most owner-operators.
Renting can help you out if you have a large contract coming or have to cater to the needs of a new client but lack the means. Renting a trailer is also a good option if your current assets are ill-disposed due to a malfunction or an accident. No matter what, you have to keep the wheels rolling, which is when renting a trailer comes in handy.
When Leasing a Semi Trailer is the Best Option
Leasing a trailer has become increasingly popular with owner-operators, mainly due to the ever-shifting industry technologies. Just like leasing a truck, leasing a trailer is a great option for new owner-operators as it offers many short-term financial benefits. This is mainly due to the fact that you are only paying to use the trailer. What’s more, it usually requires a small upfront payment you can easily afford.
Leasing can also help you stand on your feet if your financial situation is bad and you are looking for affordable options for truck trailer financing with bad credit score. Leasing a trailer is ideal when your cash flow is thin or the contract margins are slim. It also helps that you can carry the trailer as a monthly expense and not an asset in your books. If your company is growing quickly and you need to invest in other aspects of the business, leasing is definitely your best choice.
Which Option is best for Your Business?
Both renting and leasing a semi-trailer have their benefits, and ultimately you are the one who has to decide which option works best for you. A company that specializes in trailer leasing like Go Capital can help you make the decision to lease easier by offering great trailer leasing options even if your credit score is bad.
Our agents have a lot of experience in the trucking industry and are glad to share their expertise and knowledge with aspiring owner-operators. Our flexible policy ensures that you still get a great deal on trailer financing, especially if you are an experienced truck driver. Don’t hesitate to contact our friendly agents at (855) 396-3600 and find out what we can do to help you achieve your goals.