Buy or Lease Moving Trucks

Hey, what's up, my friend? It's Louis, and I've been getting a question lately of should I buy or lease moving trucks? So I figured, you know what, Let me throw you in a recent moving CEO business program live cast that we did, where I train on new topics every single month. And then I take questions from our members and I answer them right there, live with them every month. So I recently answered this question, so.

I figured, let me just throw you.

Right in that session, let you hear for yourself whether you should buy or lease your next moving truck.

Enjoy financing versus leasing trucks. What do you prefer and why? Great question. So there's no right or wrong answer. Let's just start with that. It's totally a preference thing. Now there is, you know, you could do everything by the book of what's the right financial decision. But then there's also convenience, right? Like I would, you know, on a personal level, like I like to lease my vehicles because I want a brand new, you know, vehicle, and I want to give it back and get another brand new vehicle in a few years, and I don't want to take care of it. If anything's wrong, I bring it in and they deal with it. Is that the smart financial play? No, the smart financial play on a personal level would be to buy a car that's a few years old with, you know, a few thousand miles on it, buy it after it's already taken the depreciation, and drive it until it doesn't, you know, until it breaks down. Right? That's the smart financial decision. So from a trucks standpoint, I always bought trucks, okay? And I bought them brand new, right? Which, you know, technically when you buy, you know, if you buy it used, you, you know, the, it depreciates right away as soon as it comes off the lot. But the problem is with moving trucks, they don't. You can't. It's hard to find them, like slightly used, right? They're usually pretty, pretty worn out. So we would buy them new and finance them, make the payments on them for five years and then run them for another three years after with no payments and then sell them after that. And you know that financially will be over the long term your better move from strictly financial. But you can't, you guys don't just take, you know, the best financial decision into account, right? Because when you own the truck, you also have to take care of that truck. So you have to think about, do I have a mechanic that I can rely on? Do I have a mechanic that I can Trust. Do I know anything about trucks? Right. I mean, you know, I had to learn the hard way when, you know, the diesel on one of my trucks froze up or gelled up, I should say. And I had to go prime the truck and, you know, let the little air valve out and sprayed all of my face. Like, I had to learn that stuff the hard way, and I didn't want to deal with that. But I happen to have good mechanics everywhere that I went. Could I trust them? Were they padding the bill? Probably right. Were they charging me for stuff that I really couldn't argue because I didn't know enough about the trucks, I'd say so. Now with leasing, what's nice about some of these leasing programs that some of the, you know, the penskes and the riders and these companies provide is that, you know, you get that new truck, you can wear and tear. If it breaks down, they give you a new one, and the whole truck payment is deductible, right? So when you buy a truck, every payment that you make, right, only the interest and the taxes on that payment come off your P and L, right? And the rest is paying down your balance sheet. So at the end of the year, when you buy trucks, it can make your P and L look like you've got a lot of profit, but. But you don't have the money. Like, in other words, you're like, oh, it looks like we're profitable, but yet, like, the bank account doesn't show that. Whereas with a lease, you've got, every payment that you pay comes off your profit, right? So it reduces your tax exposure. Now with the. I know I'm getting technical here, but I'm answering the question, right? This is the stuff you got to think about with the truck that you buy, you do get to depreciate that, which helps reduce your. Your tax exposure. That's all based on how you and your CPA choose to do it. So, you know, I would say that, you know, today, if I was starting over, I would explore both options. I would talk to my cpa. I would, at the time of, when it comes to buy a new truck, you know, look at where you're at and see what you need from a tax standpoint, what your mechanic situation is, and then make the decision from there. So I like both ways. I'm not against either one. And that's kind of my. My scoop, right? My reason why you said, what do you prefer? And why. That's. That's the reason why. But we did buy trucks brand new, and there are trucks that you can get a brand new body with a used chassis, Go to my website LewisMassaro.com, search put trucks. It's like Mover's Guide to Trucks, something like that. Just put trucks in the search bar. There's a blog post there with my connections for buying a new truck, buying a new box with a used chassis, and some leasing information as well. I hope that helps you guys.

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