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Need a tow truck for your company that won’t interfere with your cash flow? Then leasing a new or used tow truck can be just what you need. Lease to own tow trucks is ultimately the better choice for your company. Buying a new tow truck is expensive and will definitely deplete your savings. Additionally, this does not account for future upgrades, radios, accessories, or repairs you might require. Tow truck finance is your best choice if you want to enjoy a new or used tow truck without digging too deeply into your budget.
What Is Leasing a Tow Truck?
One kind of leasing and financial arrangement is tow truck leasing. An individual, firm, or business pays another organization to utilize a tow truck for a predetermined time. By the contract terms, the lessee pays the lessor a sum in exchange for the temporary right to use the tow truck.
What Are Financing Alternatives Available for The Tow Truck Lease Option You’ve Chosen?
The lowest tow truck financing rates may be available from tow truck leasing firms in the form of a $1 buyout lease, 10% PUT lease, or FMV buyout lease, where you make monthly payments to the bank while maintaining ownership of the tow truck. The equipment financing arrangement will often include the finest early prepayment choices.
Tow Truck TRAC Lease
A terminal rental adjustment lease (TRAC), which offers the benefits of tow truck leasing and the choice to buy the tow truck after the lease, is a tow truck lease. You mostly gain three advantages from this. First, when the lease is up, you can purchase the tow truck outright or a replacement. Second, since the tow truck’s sale price is already set, you won’t need to haggle or obtain a deal after the lease expires.
Last, you may decide between making low monthly payments and paying a larger purchase price after the lease period, or you can make big monthly payments.
$1 Buyout Lease
Also referred to as a capital lease, this type enables the business to lease the tow truck for a predetermined amount of time and then purchase it for $1 after the lease. Although the monthly payments for this lease are probably greater than those for other leases, it includes a $1 buyout after the lease, which means that tow truck finance firms may wind up spending less overall.
FMV Tow Truck Lease
Also known as an operational lease, an FMV lease allows the business to utilize the tow truck for a specific time. It offers several end-of-lease alternatives, such as continuing to lease the tow truck, returning the old tow vehicle and upgrading to a new one, or buying the tow truck for the price of its fair market value.
10% PUT Lease
A 10% Purchase Upon Termination lease lowers the overall lease sum to make the financing amount equal to 90% of the equipment’s entire cost. The business can pay the remaining 10% to purchase the tow truck after the lease period.
Conclusion
This article covered lease to own tow trucks and other tow truck financing alternatives. Leasing a tow truck is a type of financial contract that allows someone to utilize a truck in exchange for periodic payments determined by the contract’s conditions.
