Trucks, jetters, lifts and diagnostic tools are expensive. Leasing and buying each make sense in different situations.
In this article
The question
Growing service businesses need more trucks and equipment. Paying cash, financing a purchase or leasing all affect cash flow and profit differently.
Leasing
Lower upfront cost and predictable payments. You return or buy the equipment at the end.
Keep reading — free
The rest of this article is worth the 20 seconds
Tell us where to send it and the full piece unlocks right here, along with everything else on this blog.
Rather just talk? Message us on WhatsApp.
Buying
You own the asset and can use it for many years. Higher upfront cost or a loan.
Total cost
Compare all payments, interest, fees and resale value over the years you will use it.
Cash flow
Leasing protects cash in the early years. Buying costs more now and less later.
Mileage and wear
Leases often limit miles and charge for wear. Service trucks drive a lot.
Taxes
Tax treatment differs. Ask your accountant before deciding.
Technology changes
Leasing makes sense for equipment that becomes outdated quickly.
Getting started
List the equipment you plan to add this year and ask your accountant to compare leasing and buying for the two most expensive items.
Common mistakes
Choosing by monthly payment only, ignoring mileage limits and signing without reading end-of-lease terms.
Example
A plumbing company compared leasing and buying a new jetter with its accountant. Because the company used it almost daily and planned to keep it for years, buying with a loan cost less over time. For the fast-changing camera equipment, leasing made more sense.
Price every call so it pays.
We help service businesses set clear policies, book better jobs and turn more calls into profitable work.
Frequently asked questions
Is it better to lease or buy a service truck?
It depends on cash flow, how many miles you drive, how long you keep vehicles and the tax treatment. Compare the total cost over the years you will use the truck with your accountant.