Large Vehicle Financing For Trucking Fleets
Large vehicle financing has been a mainstay of the construction and even transportation industries. Over the past few years, trucking fleets and the freight industry at large have been using large vehicle financing solutions to lower overhead costs, without having to sink money into depreciating trucks and equipment.
The High Price Of Unused Trucks
Back around 2011, the economy was picking up speed and many fleets purchased trucks to meet the burgeoning demand. While the economy is still strong, one factor no one considered was the increase in road congestion. A recent report showed that traffic from smaller, privately owned vehicles are costing the trucking industry over $63 billion per year in the United States, from idling trucks, and the wear and tear on the vehicles themselves. Additionally, quite a few fleets over-purchased vehicles back in 2011, so they are left with depreciating assets. Because of the glut of used trucks currently on the market, it is impossible for fleet owners to offload vehicles unless they take a massive loss. In order to keep costs low and rightsize the number of trucks in their possession, fleet owners are turning to large vehicle financing.
How Large Vehicle Financing Works
Large vehicle financing, in particular leasing, can keep trucking fleets running efficiently while keeping costs low. Fleet owners do not have to resort to taking on debt through loans, because large vehicle financing can be customized, while spreading out the cost over manageable monthly payments.
Maintenance And Large Vehicle Financing Agreements
Large vehicle financing offers many options which can be added to leasing agreements. Maintenance, cleaning, upgrades, and more keep overhead costs low because fleet owners do not have to hire in-house specialists, or get locked into contracts with third party maintenance companies. Additionally, trucking fleets can purchase equipment they need or upgrade to the latest models as they become available.
By leasing trucks through large vehicle financing, fleet owners can take advantage of tax benefits. Payments made on vehicle leasing agreements are tax deductible. Trucking fleets can see as much as $500,000 in deductibles annually. This is frequently more preferable to losing money every year by holding onto depreciating truck that are not even used on the road.
Get A Customized Vehicle Leasing Agreement For Your Fleet
BG Capital Funding Group, we work with fleets of all sizes to keep operational costs down, while providing the equipment and vehicles they need. Contact our offices today to learn more.