6 Reasons Why Contractors Should Lease Work Trucks

When it comes time for businesses to get a work truck some companies purchase used. Most decision-makers see the used truck as a more affordable option, and at face value, they may be correct! So why are more and more contractors turning to lease work trucks for their business? Why is it a better business move to lease a work truck from Ewald Fleet Solutions?

Why leasing work trucks Is better for you and your business

1. All vehicles depreciate and lose value

Whether you buy a new or used work truck one thing remains constant: the second it leaves the lot it depreciates exponentially. A new truck becomes a used truck, and a used truck gains another owner. The initial depreciation of buying a work truck is one of the single largest expenses a fleet manager must anticipate.

Vehicles acquired through the fleet organization are typically purchased at a better price which reduces depreciation expense. By leasing a work truck, businesses reduce the depreciation loss caused by overpaying for new or used vehicles from the dealership lot.

2. Newer work trucks have better gas mileage

A new Ford F-150 features a twin-turbo Eco-Boost engine, Auto Start/Stop, a 10-speed transmission, an aluminum body, and up to 26 miles per gallon. That translates to significant savings on fuel costs over the life of your vehicle. Compare that to a used F-150 without all the new technology that barely reaches 20 miles per gallon. Leasing new work trucks will reduce your business’s fuel expenses by thousands each year.

Fuel savings quickly add up when you have a fleet of 5, 20, or even 50 work trucks. New pickup trucks have technology that improves fuel economy, handling, towing, performance, and more. Use our fuel savings calculator to see how much your business could save.

3. Newer work trucks are cheaper to run

A new leased work truck from Ewald Fleet Solutions is cheaper to run than a used work truck from your local dealer; even if you ignore fuel expenses. Used work trucks were most likely driven hard. Parts are starting to wear and need to be replaced. Those repairs start to get expensive and add up over time. What’s worse is they come out of your own pocket. The average 4-year-old vehicle with 100,000 miles will cost you $800-$1,200 in additional maintenance annually over a new vehicle.

On the off chance your brand new truck needs a repair, it is likely covered under warranty.

4. Leased work trucks will have less wear and tear

One of the most common arguments and misconceptions regarding leasing a work truck is “Well the truck is going to get beat up anyway.” It’s true. Work trucks see more abuse and wear than other vehicles. When decision-makers think of how beat up their work trucks are they typically think of the 8-12-year-old model they purchased 4 years ago with two or more owners and a decade of wear and tear.  

Leased work trucks see less abuse and hold their value when businesses operate them for a shorter amount of time.

5. Turnkey truck upfitting

When you buy a used work truck you need to attach toolboxes, ladder racks, and potentially graphics. This takes time and money. When you lease a work truck from Ewald Fleet Solutions we take care of all the upfitting for you.

We can outfit trucks for any type of work:

• Roofing Contractors
• Plumbing Businesses
• HVAC Installers
• Landscaping
• And more…

Ewald delivers your leased work trucks to you ready for use and can roll the cost of the upfitting into your lease. You now have your vehicles set up for a “pay for what you use approach”.

6. Leasing Can match actual market depreciation and cost reflection

Say you decide to buy your fleet of work trucks. Some might be a Chevrolet from 2015, one could be a Dodge Ram from 2008. You might have a Chevy Colorado that costs $500 a month and a Dodge Ram pickup that costs $700 a month. You could have a Chevy Silverado with 50,000 miles and a Chevy Express Van with 115,000 miles. Some will require heavy repairs and others may only need basic oil changes. Using standard account book depreciation seldom matches actual market value depreciation causing losses and accounting headaches.

Leasing work trucks from Ewald Fleet Solutions allows your business to standardize vehicles and customize leases to fit actual miles driven.  A leased fleet of work trucks is easier to maintain and budget with lower overall operating costs.

Ewald Fleet Solutions, allows you to take a “pay for what you use approach” to your vehicle expenses while having a professional knowledgeable team working on your behalf to keep your operating costs in line.

Not only can leasing work trucks save you money, it will save you time, improve upon your image, keep employee morale high and provide safety for your most valuable assets; your employees!

Ewald Fleet Solutions offers superior fleet services for businesses in Wisconsin and around the country. We work with you to develop the perfect program for your business. Ewald helps businesses with everything from executive vehicles to work trucks with upfitting. We customize fleet plans to save you money based on an in-depth analysis of how your business fleet operations work and the financial benchmarks you need to meet. 

How to decide if leasing work trucks is worth it

1. Understand that every vehicle will lose value through depreciation
   When comparing leasing to owning a truck, remember that every vehicle loses value with time and mileage. The true cost of ownership should include depreciation and maintenance.
2. Compare savings on gas and mileage
   Business owners who own their trucks often run them until they fail, assuming that it saves them money. In reality the increased costs of fuel and depreciation make older trucks more expensive than their newer counterparts.
3. Compare costs of maintenance
   Older trucks break down often. Leasing a newer truck may cost more in fixed monthly payments, but you won’t have to deal with the costly repairs common in older trucks.
4. Ask a fleet management specialist
   When in doubt, speak with a fleet management specialist at Ewald Fleet Solutions. We’ll happily walk you through the benefits of leasing and help you compare the costs of leasing vs buying.

How to avoid depreciation on your work trucks

1. Understand that all vehicles will depreciate in value
   Every truck will lose value over time, whether it is leased or owned. Depreciation costs should be factored into every vehicle acquisition and life cycle strategy.
2. Consider leasing a work truck fleet
   Leasing new work trucks will result in lower depreciation and maintenance costs, when compared to purchasing. Leasing allows you to cycle vehicles out of your fleet at the optimal point before their maintenance costs skyrocket and their market value plummets.
3. Speak with a fleet management professional
   At Ewald, our fleet management specialists are experienced at identifying optimal vehicle cycling points to help our customers reduce depreciation costs, and utimately run a newer fleet of vehicles for less money.

How to upfit work truck fleets

1. Take inventory of current work truck accessories
   Make a list of every vehicle accessory that is needed to improve work site performance. This can be anything from mounted lighting options to tailgate ramps.
2. See which upfitting options competitors are using
   Maintain an edge over the competition by finding out which upfitting options are making them more effective. Perhaps lighting is helping competitors extend work hours, or ladder racks are helping to free up space in the bed for tools and materials.
3. Decide how to keep tools and materials organized
   Ladder racks, toolboxes, bed slides and other storage options can keep employees on task at the job site, and reduce costly trips to the store for forgotten materials.
4. Consider graphics and branding opportunities
   Branding work trucks with company colors, logos and contact information is a great way to increase brand awareness and get more leads. Drivers will advertise the business every time they drive to and from a work site.
5. Ask an Ewald fleet management specialist
   The fleet management professionals at Ewald are experts in truck upfitting, and can guide you through every option to keep productivity high and costs low.

Frequently Asked Questions