If you plan to own a truck without the hassles of any long-term commitment, considering leasing a truck may be a good option. Truck rental agencies are equipped with highly advanced vehicle lines from the in-house of some top-tier manufacturers. The best thing about leasing is that you pay half of the purchase price, so you invest the money saved in a productive company for your business. While car leasing offers some advantages, there can also be potential drawbacks. And if you’re considering doing a deal with a car rental agency, you have to beware of the pitfalls.
1. Making the full payment
When buying a truck, most of you would try to convince the seller to lower the price. In case of renting a van, the same must be done. Although you have no plans to own the van long-term, it is suggested that you try to shop around for the best deal possible.
When considering the details of the lease, the first thing most people do is focus solely on the monthly payments, neglecting the big picture. There are cases in which the tenant is paying lower monthly rents, but when it is added at the end of the agreed time, the amount turns out to be enormous.
2. Invest too much money
There are some companies that will guarantee you the lowest payment, but will ask for a hefty down payment. This money is used to give away a part of the rental of the van. However, paying off most of the cash ahead of time doesn’t always help.
If the van you have rented is stolen within the first few months of your agreement, the insurance company will reimburse your leasing company, but you may be left with nothing. There are chances that you will run out of the money you have invested. Well, paying less up front will make your monthly payment higher; You can avoid worrying about running out of money if something bad happens to your truck.
3. Underestimate mileage
When signing an agreement, one thing to check is the mileage your truck offers. For the most part, the mileage stays anywhere between 12,000 and 15,000 miles per year. When exceeding the limit, the renter will have to pay a fee. The payment could be 25 cents per mile. However, this may vary from company to company.
4. Forget the fine print
Like any other agreement, you should read the fine print carefully before deciding to end the deal. The contract will include all the details about the rental of your van, such as the maintenance of the vehicle during the rental period.