The most common question our friendly agents get asked by aspiring owner-operators is “How Much Is It to Lease a Semi Truck,” and there really is no short answer to that. What owner-operators usually want the answer to is this – will their future owner-operator business bring them any profit after all the monthly deductions? But how much money you can make leasing a truck and how much it will cost depends on several factors, which our semi truck leasing experts will try to address below.
How much is it to lease a semi truck?
The price range on semi trucks can vary and depends on the age of the semi-truck, its condition, the model, and how many miles it has already driven. A new or near-mint truck will be significantly more expensive than the one that is more than 10 years old and has a lot of mileage. However, a new truck offers possibilities an old one doesn’t, as we’ve stated in a previous blog. The payments on more newer trucks tend to be slightly lower because they present less risk for the lender. The equipment is less likely to break down before the end of the funding term. This also means (to the funder) that your business is more likely to succeed at face value in comparison to someone leasing or financing an older semi truck or trailer. A running truck means that you are making money for your business – and you are more likely to make all of your payments. A clear win-win situation.
As for the semi truck prices, again they depend from seller to seller, but expect that new models can cost in the range of $120,000 – 250,000, while models over 5 years old cost somewhere between $40,000 and $70,000. Seasoned trucks over 10 years of age range between $20,000 and $40,000.
Leasing the truck on average will require a minimum down payment of 10%-15%. Sometimes you will incur higher down payments to overcome credit difficulties, or to lower your monthly payments. Terms range from 12 to 60 months, on average, and you typically have the option to simply lease, or have the option to purchase the truck or trailer for fair market value at the end of your selected term.
Monthly payments can very based on the equipment value, the selected term, the amount of the down payment, and on your individual circumstances. To inquire about your situation, feel free to give one of our truck leasing experts a call at 855-396-3600.
Leasing a Semi-Truck with Bad Credit
If your credit score is bad, you still have options if you plan to lease a semi-truck, depending on the truck leasing company you work with. In general, it is more difficult to lease a vehicle than any other piece of equipment if your credit score is low because most companies base their rates on credit scores. Providing a higher down payment may significantly increase your chances of getting your semi-truck financed, because the risk for the funder becomes lower.
Adding A CoSigner for Your Lease
It also helps you to have a co-signer enter into the lease agreement with you, to provide additional security for the funder. This can help you get funded when you otherwise may not have the option based on your own credit history or score.
Non-Prime Semi-Truck Funding
Some companies are more flexible than others. Unfortunately, bankruptcies, repossessions and auto charge-offs happen, which is why it is important to find a financing company that will try to work with you to overcome bumps in the road. Go Capital offers semi-truck financing services even to future owner-operators with bad credit scores. There are some factors that will significantly increase your chance of getting your credit approved. For example, if you are an experienced trucker and your business has potential, your chances will vastly improve. You will need to provide insight into your current financial state and proof that you will be able to meet your monthly payments. The more insight you give us, the better payment options we can offer. You will also need industry references.
Don’t Give Up on Your Dreams
At the end of the day a large number of our customers who had a dream but had doubts based on their credit history, just started with a phone call, and were surprised to find out that they were approved. They learned, like you can, that being an owner-operator for them, was more profitable after their payment than working as a company driver. A respectable truck leasing company like Go Capital can offer better rates which will help put you in a position to realize a profit. And there is no greater feeling than being your own boss.