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A career in the transportation industry is appealing to those who enjoy spending time behind the wheel. Unfortunately, the cost of purchasing a semi-trailer can deter some people from starting this new career path. If you are unable to afford the purchase of a new semi outright or you don't have enough credit to qualify for a loan, leasing might be a better option. Many carriers offer the opportunity for independent drivers to lease semi-trailers.
You will be able to enjoy the freedom of being your own boss while minimizing your startup costs when you opt to lease your first semi-trailer.
1. Ongoing Expenses
It can be easy to estimate your expenses using only the truck lease payment as a guide, but this approach isn't very accurate. Instead, you will want to create a list of all potential ongoing expenses before you sign a lease on a semi-trailer.
Some carriers require that you maintain escrow accounts for maintenance, repairs, or new tires. You will also need to calculate the cost of truck insurance, cargo insurance, and permits before you agree to the terms of a lease.
An in-depth analysis of your estimated expenses will help you determine which lease agreement is best suited to help you maximize your profits over time.
2. Lease Restrictions
All semi-trailer leases will come with certain restrictions. Your goal is to find the lease with restrictions that won't interfere with your ability to turn a profit. Some common types of restrictions found in semi-trailer lease agreements include mileage maximums, location limits, and load guidelines.
Read through any potential lease agreement carefully so that you will be aware of all restrictions imposed on you by the agreement. An understanding of all included lease restrictions will help you better protect your rights as a lease operator for the duration of your lease period.
3. Tax and Insurance Obligations
Every carrier approaches the lease process in a slightly different way. Some carriers will offer their lease operators access to subsidized health and dental insurance, while others treat lease operators strictly as independent contractors and won't provide insurance.
Your income taxes will also be affected by the type of lease that you sign with a semi-trailer carrier. Verify whether or not the carrier plans to withhold taxes from any income you generate so that you can establish a savings plan that will allow you to meet your tax obligations with ease.
Learn more about your options by contacting semi-trailer leasing services.
Share14 May 2020
