In Canada, dump trucks cost anywhere from $50,000 to $200,000 each. Prices vary based on whether you are purchasing a new or used vehicle, and the condition of the truck at the time of purchase.
Many businesses cannot afford to purchase a dump truck up front, but they still need this type of transport equipment to keep their business running. This is where equipment leasing comes in. Let’s take a look at the main advantages of leasing a dump truck.
1. Affordability
Leasing a truck means committing to stable, monthly payments that do not change with market fluctuations or adjustments to interest rates. Payments are tax deductible, and you are generally not required to make any type of down payment when signing a lease, unlike when obtaining a loan.
This makes leasing an affordable and manageable solution for accessing a dump truck for start-ups and established businesses alike. With a lease, you can budget for monthly payments and be confident that you can access the equipment you need without any surprises.
2. Potential to purchase
There are many types of lease contracts. Companies can choose between an operating lease, which gives them access to equipment for the duration of the lease, and a finance (capital) lease, which gives the lessee the option to purchase at the end of the lease term by paying the remaining difference in value. Finance leases are a good option for equipment that is likely to last a long time, like trucks, trailers, and heavy construction machinery, since all your lease payments contribute to the overall cost of the machinery.
3. Tax Benefits
Lease payments are 100% tax deductible under the Canadian tax system. If you treat your entire lease cost as an operating expense rather than a capital expense, you can capitalize on Input Tax Credits. Check out our dedicated article to learn out more about the tax benefits of leasing.
4. Flexibility
If you are looking to lease a dump truck, remember that you do not have to accept the first offer that presents itself. Businesses have many options when it comes to leasing heavy equipment, and you should take the time to learn everything you can about how equipment leasing works before signing a contract.
Don’t be afraid to state your needs and clearly define your limits. Chances are you can find the right type of lease for your situation if you take the time to contact several financing companies, do your homework, and pick the best contract available.
At Soluco, our team is always ready to answer your questions and help you understand your options. Give us a call and one of our team members will be pleased to explain everything you need to know about leasing dump trucks with Soluco.
5. Modern technology
When you lease, you can gain access to modern equipment that your business may not be able to afford to purchase directly. It’s a great solution for gaining a competitive edge without breaking the bank. In addition, if your equipment does not continue to perform as promised, you can often trade it in for a newer or better model.
6. Seasonal payments
Depending on where you live, what you will be using the dump truck for, and the parameters of your contract, it may be possible for you to make lease payments only during the months when you will be using the equipment. Seasonal payments are a highly practical solution that accommodates seasonal operations in areas like Canada where winter and summer activities can vary greatly, affecting the use of equipment like snowplows, tractors, excavators, logging equipment and dump trucks.
7. Manage your credit score
If you obtain equipment via a loan, it will affect your credit, but when you lease (even in the case of a finance lease) you do not use up your available credit. This makes it a much smaller financial commitment for your business as a whole. Just remember that paying on time is key to maintaining your business credit score.
Your business credit score indicates the financial health of your business. It can be affected by loans and debts, and will also impact your ability to qualify for an equipment lease. A high credit score will help you qualify for a lease more quickly and pay lower rates, and a low score could hamper the process and lead to higher payments.
Dump truck leases for Canadian businesses
Soluco provides equipment leasing to businesses of all sizes across Canada. To find out how we can help you access the transport equipment you need, consult one of our equipment leasing brokers.
We’ll help you understand the advantages and disadvantages of leasing versus purchasing or getting a loan so you can make the best possible decision for your business. Remember, you could lease a dump truck for the short or long term without any upfront capital.
Contact Soluco today, and we’ll notify you of your lease approval within 48 business hours!