With around 1.2 million trucking companies located in the U.S., the decision to invest in trailers is one that trucking owners can’t take lightly. These trailers are the lifeblood of the business in being able to transport goods and provide customers with excellent service. Which is the better option to go with: buying trailers for sale or leasing semi-trailers? Here’s what you need to know about whether you should buy or lease a 53 foot trailer.

Leasing a Trailer

If you need a trailer for a short period of time or can’t qualify for a loan, leasing may be the ideal solution. It is also ideal for startup trucking companies because it can help you grow your business by reducing overall costs and heavy debt upfront. Leasing requires less money upfront for a down payment and is cheaper than financing. Another benefit is that leasing lenders look at more than just an owner’s credit history, which means there is more opportunity to get the financing they need.

You may also be able to claim tax deductions as well. Since you are leasing your vehicle, you won’t have to worry about hidden costs such as inspections, fluctuating interest rates, maintenance, and repairs. This can save you thousands of dollars a year even with more expensive monthly payments. Leasing terms are typically from one to three years with fixed monthly payments.

Buying a Trailer

The upside to buying a 53 foot trailer for sale is that you fully own the vehicle once you pay off your loan. You can resell it anytime you want or trade it in for another used trailer for sale. Insurance rates on used trailers for sale are also generally lower for trailer loans than leases. You may not even have to make a down payment if you’ve been generating business for a while and have good credit.

When considering buying or leasing a 53 foot trailer, the decision you make depends on how long you will need the trailer for and your overall financial situation. If you only need a trailer for a short period of time, leasing may be the best fit. If you want to build assets and expand, then buying a trailer makes the most sense. You will need to examine your options carefully and make the decision that is best suited for your needs.