Are you thinking of using dump truck leasing to acquire a used dump truck?
Dump trucks are commonly used in the construction industry, transporting materials such as gravel and cement blocks. They serve to increase a business’s productivity by easing the work needed for hauling heavy loads.
Acquiring used dump trucks benefits your business if you do it the right way. However, buying your own dump trucks involves huge upfront costs and can drain your business capital.
To avoid this, many businesses opt to use dump truck leasing. Through this, acquisition cost can be spread out on a monthly basis.
In this blog post, we’ll talk about dump truck leasing to acquire used dump trucks for your business.
Increase Purchasing Power with Dump Truck Leasing
The cost of acquiring a used dump truck may be lesser as compared to a new one. However, used dump trucks are still expensive and this can serve as a deterrent factor.
With dump truck leasing, you can increase your purchasing power and acquire the used dump truck you need. You’ll have terms up to 60 months depending on the age of the dump truck and you can still choose among the different flexible payment programs such as seasonal payments and deferred payments.
But before we explore the topic of dump truck leasing, it’s important to discuss the information you need to know before you acquire used dump trucks.
Best Place to Find Used Dump Trucks for Dump Truck Financing
Acquiring used dump trucks may be risky as there is no guarantee that they have been taken care of. Hence, you should find a dump truck in reputable places such as in nearby dump truck financing companies.
You can also easily find used dump trucks online. Here are some of the established companies that sell used dump trucks:
Aside from knowing where to find used dump trucks, you should also know the factors to consider before you acquire a dump truck.
Things to Check When Acquiring Dump Trucks for Dump Truck Leasing
When it comes to investing in used dump trucks, you need to make sure that it won’t get you stuck in the mud and be a waste of money. You should be aware of the things you should check when acquiring dump trucks.
As these are used mostly for heavy-duty applications, it’s important to know that they had been properly taken care of and maintained.
But how would you know this?
Here are a few tips for inspecting a used dump truck as you consider your purchase for dump truck leasing.
The maintenance history of dump trucks will reflect on the service record.
If there are consistent repair work records, that means there’s a problem with the truck. You should be wary in this case as you’d most likely face issues in the future.
Don’t leave small details such as where the repair was conducted for verification purposes.
Aside from that, make sure that you check the vehicle identification number (VIN) of the truck. The VIN of the truck should match the VIN on the records.
Tires and Body
Inspect the dump truck and look for any signs of damage such as cracks and dents. Determine if the box is made of aluminum or steel.
If you’re going to use the truck for hauling heavy materials, a steel box would be a good choice. Otherwise, opt for an aluminum box for carrying lightweight materials.
Frame, Rails, and Axle
Check if there’s a sagging bend or bowing bend. This can be a result of overloading or an operator driving the truck with a loaded and upright box.
In addition, make note of the presence of any push axles as this helps an operator in navigating turns more easily.
Assess the suspension system of the truck and avoid those with worn out suspensions. The used dump truck must have a high-quality suspension system or risk expensive repairs.
In assessing the condition of the interior, check the mileage on the odometer. Try to start the dump truck and check all gauges and signals.
Thoroughly inspect the lifting cylinder(s) and rod(s) for any damages. Some used dump trucks have cracks, leaks, and dents that affects its performance.
When it comes to checking the engine of the dump truck, it’s best to have a mechanic with you. A qualified mechanic or operator can check the engine for any problems more thoroughly.
Now that you know the things to consider before acquiring a dump truck, we’ll talk about why you should opt for a dump truck leasing.
To Buy, Rent, or Lease a Dump Truck?
Although purchasing used dump trucks are cheaper than new ones, it can still be expensive. Startups will risk the future of their operation if they choose to purchase used dump trucks.
Keep in mind that you’ll be responsible for the maintenance and storage of the truck.
On the other hand, renting dump trucks might cause financial instability. That is, long-term rentals are more expensive than buying or used dump truck leasing.
Choosing to lease dump trucks instead allows you to get a flexible dump truck lease payment arrangement. The payments are usually lower than a business loan or dump truck rental, making monthly budgeting easier.
Dump Truck Leasing as the Best Option
Aside from lower monthly payments, you don’t always need to make a down payment with used dump truck leasing or worry about the transportation and maintenance. Dump truck lenders can do no payments for the first three months, no payment up front but if you want a lower total out of pocket cost they'll ask you to make one or two payments up front.
You’ll also have more working capital since dump truck leasing doesn’t affect your business line of credit line. Business finance companies like Trust Capital can give you 25% of the used dump trucks cost to go towards working capital for your business.
Cost of Leasing Dump Trucks
Leasing rates are dependent on several factors. These factors include the price of the equipment, lease term, and your credit score.
The lowest price of a used dump truck is around $15,000, while the highest is around $100,000 for a newer (less than 5 years old) model.
So what is the cost of dump truck leasing?
Having good credit (650+ FICO Score) guarantees lower monthly payments. For example, if you lease a used dump truck for $40,000, with one payment up front and on a $1 buy out lease agreement, you’ll expect to pay an estimated payment amount of:
- $1,818/month for a 24-month term.
- $1,260/month for a 36-month term.
- $985/month for a 48-month term.
- $820/month for a 60-month term.
However, if you have a low credit score (550 - 650 FICO Score), expect to pay higher monthly payments. Using the same example above, your monthly payments will approximately be:
- $1,939/month for a 24-month term.
- $1,385/month for a 36-month term.
- $1,111/month for a 48-month term.
- $950/month for a 60-month term.
Final Thoughts on Acquiring Used Dump Trucks Through Dump Truck Financing
In this blog post we talked about how used dump trucks are a good investment since they’re commonly used, especially in the construction industry. Having a used dump truck can also ease business’ productivity.
You can easily find used dump trucks in reputable places such as dump truck leasing companies, dump truck dealers and established online auction sites. But although acquiring used dump trucks are cheaper than buying a new one, they can still be quite expensive.
With dump truck leasing, you’ll have an increased purchasing power since you won’t have to worry about huge upfront costs. Payments are spread out on a monthly basis.
The interest rates are dependent on the price of the dump truck, dump truck lease term, and your credit score. If you have a high credit score, you can expect to enjoy lower monthly payments.
However, before you acquire a used dump truck for dump truck financing, make sure to consider checking things such as service records, tires, suspension system and engine. A problematic used dump truck will only cause more financial issues.
Ready to Apply online for dump truck leasing? We invite you to call Trust Capital and speak with a dump truck lease specialist that can offer you a no obligation approval and run payment scenarios for you subject to credit approval at 866-458-4777.