Long-term costs of leasing a newer or an older truck

It's time to talk about the long-term costs and what they mean to your business of leasing a newer truck or an older truck. I'll just say that in a few years the driver is going to make about the same money whether he's driving a newer truck or an older one, so it's a matter of your preferences and long-term strategy to choose your options.

I mean, if you're in it for the long haul with leasing (and getting another truck to lease in a few years), you should probably go with an older rig, but if you're planning the lease-to-own option, maybe it makes sense to lease a newer rig because it still has some room in terms of durability and reliability after the lease term is up and you get the ownership right.

But that's just rhetoric at this point. Only you know what's best for your business, and I'm here to give you as much useful information as possible to help you make the decision that's right for you.

Okay, so let's move on and talk about the long-term costs you'll be paying over the life of the lease.

Since I'm already talking about terms and the age of trucks, let's move on to depreciation.

Newer trucks will definitely cost more by the time your lease is up. That's just the way it works. You can't magically make an older truck look and feel better, especially if you're going to use it to make money in trucking.

But a newer truck with a higher resale value is not a bad thing if you want to buy it at the end of the lease. On the other hand, an older truck will have a lower resale value, which means less money for you to finance a new truck in the future.

Another consideration is fuel efficiency. Newer trucks tend to be more fuel efficient, which means significant fuel savings. I don't have to tell you about gas prices - they've been out of control lately and it doesn't look like it's going to get any better and we're going back to $2.3 to $2.5 a gallon. So it's important to keep that in mind.

Yes, you will make lower monthly payments on older trucks, but you will also pay more for fuel. I'm not sure you'll make any money there. Your expenses will probably be the same. And if you ask me, I'd rather pay the same money for a newer thing than an older thing that likes to break down because it feels like it.

This brings us to the next point of discussion - maintenance costs. Newer equipment doesn't require as much maintenance, which means less money spent on repairs. And even if there is a problem, the newer truck should still have warranties to get it back on the road with minimal or no cost.

And older trucks? Well, they require more upkeep. Things break down, repair bills pile up, frustration mounts... profits are eroded... no fun.

By the way, when we talk about newer and older trucks, we're talking about newer and older models and newer and older technologies. And using new technology is how we improve fuel efficiency, safety, and overall operating costs.

Yeah, all of that can help you save money, so it's worth thinking about.

Let's get this straight. If you plan to lease a truck to own at the end of the lease, it makes sense to lease a newer truck because it will have a higher resale value at that time. A newer truck won't break down as much, but you'll have to pay higher monthly payments for it because your newer truck is more expensive to begin with.

Yes, as always, it's a question of money and paying more monthly versus paying more to fix your truck when it breaks down. Ultimately, the decision will depend on your business strategy, but if you're on the fence, I'd say if you can afford it, play it safe and get a newer rig.