The lease vs loan decision affects your monthly cash flow, tax bill, and long-term wealth. Here's the real comparison with actual numbers.
Side-by-Side on a $100,000 Truck
| Factor | Loan (60mo, 8% APR, 20% down) | FMV Lease (60mo) | $1 Buyout Lease (60mo) |
|---|---|---|---|
| Down payment | $20,000 | $0-$5,000 | $5,000-$10,000 |
| Monthly payment | $1,622 | $1,400-$1,600 | $1,750-$1,950 |
| Total payments | $97,320 | $84,000-$96,000 | $105,000-$117,000 |
| End of term | You own it (worth ~$40K) | Buy at FMV or return | You own it ($1) |
| Total cost after resale | $77,320 | $84,000-$96,000+ FMV buyout | $105,000-$117,000 |
| Tax benefit Year 1 | Section 179: up to $100K | Lease payments deductible | Section 179: up to $100K |
When to Choose a Loan
- You plan to keep the truck 5+ years
- You want to build equity
- You have 15-20% for a down payment
- You want the Section 179 deduction
- You want the lowest total cost of ownership
When to Choose a Lease
- You want the lowest monthly payment
- You plan to upgrade every 3-4 years
- You want to keep your balance sheet light
- You don't have a large down payment
- You're testing a new market or lane
When to Choose $1 Buyout Lease
- You want loan-like ownership but with lease flexibility
- Your accountant recommends it for tax structuring
- The lender offers better terms as a lease vs a loan (common)
The Hidden Factor: Maintenance
With a loan, all maintenance is your responsibility from day one. Some leases include maintenance packages that cover major repairs, reducing your out-of-pocket risk. Factor this into your total cost comparison.
Our Recommendation
For most owner operators buying a used truck they plan to keep: a loan is the best financial decision. You build equity, own the asset, and have the lowest total cost.
For fleets replacing trucks every 3-4 years: FMV leases make sense for fleet management efficiency.
Compare your options: brobascap.com or (773) 691-3925