Leasing a semi-truck vs. buying one: 12 pros and cons

Estimated reading time: 4 minutes 

As an owner-operator, you have a big decision to make when it comes to getting your equipment – should you lease a semi-truck or buy one?   

Since everyone’s situation is different, it is important to review the pros and cons of leasing a semi-truck versus buying one to help you decide which route would be best for your business. 

What are the benefits of leasing a semi-truck?

 1. You spend less money upfront.

When you’re weighing the pros and cons of leasing versus buying a semi-truck, one of the biggest things to consider is how much money you have available to invest in your equipment.  

When you buy a semi-truck, you either need to buy it with cash or finance it. If you don’t have a lot of money for a down payment and there are concerns about your credit score, you may not qualify for financing.   

Leasing a semi-truck can be a great option for an owner-operator who doesn’t have a lot of money saved up and/or is working to improve their credit history. Many leasing companies, like SFI Trucks and Financing, offer low-money down and flexible credit score options, which can help you get into a truck sooner.

 2. You have more financial security.

Leasing has a defined period an owner-operator can use the truck with fixed weekly payments.

Plus, you’re not permanently locked down to one truck: If you’re unhappy with the lease program or truck you’re in, you can simply turn the truck in at the end of your lease.

Some leasing companies, like SFI, offer other advantages to owner-operators that provide even more financial security. These perks can include things like:

• Extensive warranty plans.
• A 24/7 maintenance support team.
• Discounts on parts and labor.
• Flexible truck payment options.

3. You have the chance to operate a brand-new truck.

Leasing a semi-truck often allows owner-operators to operate the latest truck models without the high upfront costs that come with buying one.

A new truck typically leads to savings for your business because it usually:

• Is more fuel-efficient.
• Has better truck specs, like improved safety and comfort features.
• Comes with a factory-direct warranty.
• Has fewer unexpected maintenance problems.

What are the challenges of leasing a semi-truck? 

4. You might spend more money in the long run.

Since owner-operators usually have the option to put less money down when they lease a semi-truck, their truck payment on a month-to-month basis is usually higher than someone who buys a truck and finances it. 

The truck payment will vary depending on their lease agreement, the make/model and the specs of the truck they lease. 

5. You have less freedom.

Owner-operators who lease a semi-truck may be required to follow certain rules and regulations as determined by the leasing company, like pet and smoking policies.  

They likely won’t be able to make any upgrades or modifications to the truck either, since the truck is not theirs. 

 6. You need to pay attention to the lease agreement.

Lease agreements can be complex, and certainly contain terms that are important to understand. It’s important to carefully read and examine the agreement before you sign it, so you know exactly what you’re signing up for. 

What are the benefits of purchasing a semi-truck? 

7. You build equity over time.

Just like monthly payments on a house, each time you make a payment on your truck, you are earning equity. Once your payments are complete, you own the truck outright. You can continue to drive the truck payment-free or use the equity to trade it in for a newer truck. 

Plus, you can likely take a tax write-off for the depreciation of your truck. You can also likely deduct interest paid on loans for your equipment. 

8. You may save more money in the long run.

While the initial investment of buying a semi-truck may be higher than leasing one, it can be more cost-effective in the long run.  

That's because you’ll have smaller monthly payments compared to someone who leases a truck, which will save you money over time. 

Some companies, like Schneider Trucks, work with financing providers who will help you get the best deal possible.

 9. You can customize your truck.

When you buy a semi-truck, you have full ownership and control over the vehicle. This means you can customize and modify the truck however you want, without any restrictions.  

Whether it's upgrading the engine or outfitting the interior for enhanced comfort, being able to personalize your truck gives you the freedom to create a tailored solution that optimizes your productivity and your truck’s performance. 

What are the challenges of purchasing a semi-truck? 

10. You will have high upfront costs.

Owner-operators who purchase a semi-truck and finance it don’t usually have low-money down options available to them. Typically, they will be required to put:

• About 20-30% down on a new truck.
• About 10-20% down on a used truck.

If an owner-operator chooses to buy a semi-truck outright, their upfront costs will obviously be much higher. However, they won’t have monthly payments.

11. You have less security.

12. You have less flexibility.

When you purchase a semi-truck, you are tied to it until you sell it or trade it in for something new. This could be a drawback if your business changes over time. 

It's important to carefully consider your long-term plans and the potential impact of this commitment on your business’ ability to adapt and grow in the transportation industry.