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It’s important for start-ups and fairly new businesses to monitor their cash flow. For an example, a new business may need pickup trucks to deliver their services or products. However, what is the best way to invest in them?
Usually there are two options, leasing and purchasing. Leasing can mean lower expenses needed up front. However, the financial margin between a new car lease and a new car purchase can be fairly slim. Plus, a lease is not an investment. It’s strictly a rental arrangement with a fancier name.
New businesses can save money by purchasing quality used pickup trucks, rather than leasing new ones. Here are three benefits of buying used pickup trucks over leasing new ones. These benefits should help you decide if buying a used pickup truck is a good idea for your new business.
1. Variety of Options for Used Pickup Trucks
When you lease from a dealership, all of the trucks are exactly the same brand. Although most people love new vehicles, even the best pickup trucks have unexpected problems. For instance, many of them have tech issues that you can’t spot when you test drive it.
However, when purchasing a used pickup truck, you can choose from many different models and not worry about the current dealership promo they are trying to sell you. You have the option of purchasing a one, two, and three-year-old model based on their condition and capability. A three-year-old model with high quality ratings is a great purchase when you can’t afford the new model with the same capability. You could buy a Ford, Ram, and Chevy pickup truck to discover which one truly works best for your business.
2. Used Pickup Trucks Have More Features
Most business vehicles lack luxurious features because the owner is trying to save money. There’s also an assumption that the employee doesn’t require these features while on the job. However, in some instances the owner or business manager may be the one most often in the pickup truck. Especially when the business is new or just starting up. In that case, shouldn’t they be able to enjoy luxurious features in the pickup truck?
If you buy a used pickup truck, there is an increased chance of finding one with a premium trim. Premium trims can have features like break assist, navigation, built-in Wi-Fi and defrosting side mirrors. A pickup truck with safety technology can prevent wrecks, which can decrease your insurance rates as well.
Although most new trucks offer the convenience of Apple CarPlay and Android Auto on their base editions, not all of them do. You can have those tech features for a discounted price by buying a used pickup truck. Why should you buy a truck with tech features? Well, those features make it easier to do voice texting and calling. A valuable benefit for a busy entrepreneur on the go.
3. Investment Possibilities For Used Pickup Trucks
Leasing a pickup truck will save some money at the beginning. However, you are paying on a vehicle that you do not own. So when the lease expires, you have no equity in that vehicle. It’s possible to convert the lease to the loan, but that comes with new expenses.
Furthermore, if you leased multiple trucks at the same time, you’ll have to turn them in all at the same time. You may find yourself back where you started, paying high prices for your company’s transportation needs.
However, you can spread it out if you own the pickup trucks. Owning allows you to trade your trucks in on a case by case basis. You can keep what you like and trade the vehicles that aren’t suitable anymore. This spreads out your expenses and gives you some cash back to help your bottom line.
Also, if they are new enough, they still may qualify for a warranty and a new vehicle interest rate. The low price and fair interest rate will result in lower monthly payments. Plus, you will be paying toward ownership.
In conclusion, buying is superior to leasing, even if you are buying used. The vehicles retain some of their value and give you an opportunity to regain a portion of your investment when trading it in. Before you decide to lease, take time to search the used car market. You may discover you can get higher quality for a lower price.
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