Should You Finance or Pay Cash for Your Next Truck?

Vernon Tirey, founder and CEO of LeaseQ, was recently featured in a Pumper Magazine article about the benefits of equipment financing for septic trucks. In the article, Vernon explains the advantages to buying outright and financing pumper trucks, saying:

The main advantage of paying cash for a truck, according to Tirey, is that you’re not paying interest. “It’s just like when you pay cash for a car,” he says. “It’s yours, and you don’t owe any interest or fees to the bank. The disadvantage of purchasing is that you won’t have that cash to, say, invest in marketing, expand your business, hire workers or save for a rainy day.”

Those looking at leasing or loaning a pumper truck should shop around. There are lenders for every business size and every class and type of truck, according to Tirey. “These lenders specialize in their specific verticals and speak the operator’s language,” he says.

So, why would anyone choose to pay interest on a truck if they have enough liquid cash? Tirey says it’s not always that simple and that smart business owners often finance trucks to preserve cash. “Equipment purchases made with cash are made with after-tax dollars, while monthly lease or loan payments are considered a pretax business expense. Equipment financing is the first financing any business owner should put in place. A financed truck generates revenue to service the debt and produce positive cash flow. It pays for itself over time.”

To read the rest of Vernon’s advice in this Pumper Magazine article, please visit: http://bit.ly/2jrTYLA

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