Lease vs buy a truck: the same semi on two deal sheets

The lease vs buy question has a numeric answer for your situation, as long as you compare the same truck over the same years. This guide puts both on side-by-side deal sheets, explains what each choice costs and gives you a free spreadsheet template to take to your accountant. We do not sell leases or loans.

Two deal sheets, one truck

Enter the truck's price and a loan quote on one side and a lease quote on the other, then pick how many years to compare. The buy side subtracts the equity you would have; the lease side subtracts any maintenance the lease includes. Download the template to keep working in a spreadsheet.

How to read the result

The lower net cost wins on money. But money is not the only factor. Buying leaves you with a truck you can keep running, sell or trade. Leasing leaves you with nothing to sell but also nothing to repair or resell. If the two are close, the deciding questions are how long you keep trucks, how many miles you run and how much cash you need to keep in reserve.

Pros and cons of leasing a semi truck

Lease terms vary by lessor. Check any specific lease for what it includes and charges.

When leasing usually wins

• You want a new truck every three or four years and do not want to deal with resale.
• You value predictable repair costs and the lease bundles maintenance on your lanes.
• You need to keep cash for operating reserves rather than a down payment.
• Your miles fit within the lease's limit.

When buying usually wins

• You plan to keep the truck for many years, well past the loan.
• You run high miles that a lease would charge for.
• You want equity to borrow against, sell or trade toward your next truck.
• You can maintain the truck well, or have a shop you trust.

Tax treatment notes

A true lease payment is generally deducted as a business expense as you pay it. A purchased truck is depreciated over its recovery period, or much faster with bonus depreciation or Section 179, which can create a large deduction in the year of purchase. A lease-purchase and some TRAC leases can be treated as purchases for tax. These differences can change which option comes out ahead after tax. See the truck depreciation calculator for the purchase side, and talk to a tax professional before deciding.

Where lease-purchase fits

A lease-purchase sits between the two: weekly payments like a lease, ownership at the end like a loan, often through a carrier and often with a balloon and the repair bills. It is usually the most expensive path. Compare it with the lease-purchase vs own calculator and read lease to own semi trucks.

An EXAMPLE over four years

Take a $120,000 truck. Buying it with $12,000 down and a 60-month loan at an EXAMPLE 11.5% APR means a payment of about $2,375 a month. After four years you have paid about $126,000 and still owe roughly $27,000, but the truck is worth an estimated $59,500 on our EXAMPLE curve, so you hold about $32,700 of equity. Leasing the same truck at $2,400 a month with $5,000 due at signing means paying about $120,200 and owning nothing. On these numbers buying costs less net, but the lease would win if it included maintenance worth a few hundred dollars a month, or if the truck's value fell faster than expected. That is why the deal sheets let you change every input.

Leasing vs buying a truck when cash is tight

Cash is the real constraint for many owners. A lease's lower upfront cost can keep money in the bank for insurance deposits, repairs and slow weeks, which may matter more than the long-run savings of buying. If the only way to buy is to empty your account, leasing or a less expensive truck is often safer. If you can buy and still keep a solid reserve, buying usually comes out ahead over time.

Truck lease vs buy for fleets

Small fleets weigh the same numbers per truck, plus time. Full-service leases can replace a shop, a parts room and a lot of management attention, which is worth something when you run several trucks. Owning gives more control and usually lower cost per truck if you can keep the trucks maintained and busy. Many fleets mix both, leasing some trucks and owning others.

Resale risk sits with the owner

When you buy, you take the risk that the truck is worth less than expected when you sell. When you lease a fair market value or full-service lease, the lessor takes that risk. In a weak used-truck market that protection is worth something; in a strong market, owners keep the upside. Our semi truck price index shows where used prices have been heading.

Questions to ask before choosing

• What is the total cost of each option over the years I will keep the truck?
• What will I own at the end, and what is it likely worth?
• What does the lease cap in miles, and what does each extra mile cost?
• Who pays for repairs and tires under each option?
• How much cash do I need to keep in reserve either way?
• How does each option affect my taxes?

For more on lease types, read the truck leasing guide, and for leases with little upfront, zero down semi truck lease. The truck financing guide covers the loan side. Once the truck is working, our owner-operator dispatch service plans loads around the payment.

General information about financing, leasing and tax, not financial, tax or legal advice. RigCaptain is not a lender, broker, dealer or insurer. Read every contract and ask a tax professional or attorney about your own deal.