Pros:

• Preserve monthly cash flow – For many business owners, ensuring adequate monthly cash flow is important. Because monthly lease payments are typically lower than monthly financing expenses for owning your own trailer, leasing often helps business owners conserve their cash flow for other expenses.
• Lower up-front costs – When financing a loan for the purchase of new equipment, most banks require collateral or a large down payment. When leasing, however, we only require first month payment and a fully refunded deposit if unit is brought back in the same or better condition.
• Access the latest technology – Leasing helps ensure you have access to the latest technology when purchasing a new trailer is not a financial option. In addition, you can more easily update your equipment because you don’t need to sell an old or outdated tank in order to purchase a new one. You simply relinquish ownership at the end of your lease term and rent a newer trailer.
• Access the latest equipment models – When leasing, you have the flexibility to move to the latest model or change equipment entirely if your customer’s needs change. Trailer ownership makes this a more complicated process if you need to sell existing equipment, purchase new, and keep loads moving for your clients.
• Tax write-off – Under a lease-purchase agreement, 100% of lease payments are tax deductible.

Cons:

• No ownership – While there are risks and expenses associated with owning your own trailer, there are also benefits. For example, once you’re done with the trailer, you are free to sell it and use the money from the sale however you wish.
• Varying cost benefits – While there’s an initial benefit to leasing a trailer because you do not need to make a down payment, it is possible that your overall expenses throughout the course of the loan may be higher than if you had purchased the trailer.
• Obligated to the terms of the lease – Once you’ve signed the paperwork, you are unable to modify the terms of the lease. If you no longer wish to use the trailer, you will need to either continue making monthly payments or pay off the balance of the loan.