Should I lease or buy a work vehicle?
We at GB Plumbing decided to lease our first work vehicle as we thought we wouldn’t be growing or doing much besides having 1 truck. But once things got busier, and we had to start hiring more, we ha...
Forum Discussion
Lease? No. Loan? Yes.
Our first truck was a 2017 Dodge 1500 pickup truck. Four months later we bought a brand new 2023 Promaster 3500. Four months later a Promaster 2500, then another Ram truck, and another Ram truck. We have 5 total vehicles, with six employees and we're almost at our two-year mark. We have about $5K a month in auto loans.
Many people will tell you not to take out loans but instead pay with cash. I think that's fine as long as your brand message is affordable. First impressions are generally forever. How people see you when you pull into their driveway or behind you in traffic, creates a mental image of your company within your community whether you realize it or not.
Your vehicles are rolling billboards that are constantly broadcasting your brand. In my opinion, an auto loan is just an investment. If $1,300 a month provides me with free marketing AND can generate $50K a month, then that's a great ROI.
I like your point of view on this. Im wondering if I should buy my first truck/van. I work out of an enclosed trailer right now. It has its advantages and drawbacks. Im struggling to decide if its worth the monthly cost and if I can afford the monthly cost. And how the business can buy it not me.
I don't think you'll have much luck with the business buying it. The company can pay for it, but until you have two years, nobody is willing to finance your company. I financed all our vehicles early on, then transferred the titles to the company as soon as I could.
