Should I Buy or Lease a Semi-Truck? [Pros and Cons]

As a truck driver, you have a seemingly endless list of career options. Once you've decided you no longer want to be a company driver, it's a matter of deciding if you want to buy or lease a semi-truck.  There are benefits to both buying or leasing your Class 8 truck, making it a tough decision for truck drivers. 

If you aren’t in good financial standing, buying a truck and breaking down can make you go broke — and maybe even have to file for bankruptcy. On the other hand, leasing might not give you the independence you desire. 

I’ve been helping drivers get into their own leased trucks for nine years. I want to ensure you have all the information you need to make the best decision for yourself. 

After reading this article, you'll understand the pros and cons of leasing a truck versus buying a truck so that you can make an informed decision. 

Leasing a Semi-Truck

Before you decide to lease or buy a semi-truck, think about financial obligations, risks, and independence.

Lease Pro: Fewer Upfront Costs

Financial obligation is probably the top factor to consider when deciding whether to lease or buy a semi-truck. When you lease a truck, you have fewer upfront costs to consider than if you were to buy one outright. There's often no money down and you just have to worry about making weekly fixed payments to cover the cost of the truck. Lease payments are typically offered at a lower cost than traditional financing. 

It's usually fairly easy to get into a lease too, with lease companies usually not requiring a credit check. 

Lease Pro: Fewer Risks

While being a lease driver or an owner-operator both come with risks and major responsibilities, you will be taking on a lot more risk and responsibility as an owner-operator. Owner-operators are often on their own without the support of a trucking carrier. 

As a lease driver, you have the backing of your company. You can call your company for warranty work or road assistance. They’ll give you freight options to choose from. 

Should you fall behind on your lease payment due to breakdowns, health, family, or other issues, you may be granted some leeway by your leasing company. If you have to terminate your lease in an emergency situation, it shouldn't impact your credit score.

Lease Pro: Drive Newer Trucks

If you do a short-term truck lease, you can get into a new truck every year. A lot of drivers enjoy this flexibility. Being in a new truck all the time, there's less risk that you'll have to pay for major repairs -- especially because the truck is probably still under warranty. It'll also come loaded with more safety features and will have better fuel efficiency. 

Plus, a lot of companies offer a lease completion bonus if you carry out the lease.

You may not like the original truck you leased, so taking advantage of a short-term lease allows you to get into something else once the lease is up. Be sure you look into the equipment offered at the company you're working with. If they only lease older equipment or models you don't like, you may not be very happy. 

Lease Con: Less Freedom

When you lease a truck, you're at the mercy of the leasing company. You have to closely follow the lease agreement and follow rules and regulations. You might be under mileage restrictions or have to follow company rules that you don't agree with. Companies also usually require you to put a set amount of money into a maintenance account regularly. While this is a good idea, you might not like how it's carried out.

As part of your lease, you may need to have repairs done at a specific shop. If you own your truck, that isn’t something you have to worry about. The age of their equipment may be a major deciding factor for you.

You may also earn less if you're leasing with a trucking company because they'll take a percentage of your earnings. 

Lease Con: No Truck Modifications

If you want to modify your truck, owning is probably the best option for you. Because you don’t own the truck as a lessee, you’ll need to return your truck back to the carrier or leasing company in good condition. You'll pay for any repairs required to get the truck ready for a new driver to take over the lease. 

If you leave your truck in poor working order with holes drilled into the dash and garbage left everywhere, you can expect to see your reserve accounts take a major hit. 

Buying a Semi-Truck

Consider these pros and cons when deciding if you should buy a semi-truck. 

Buying Pro: Earn More

Typically, an owner-operator makes more money than a lease driver because they can earn a higher percent-of-load rate or per-mile rate. If you operate under your own authority, you take home 100 percent of the revenue from each load you haul.

If your truck is already paid off, the money that a lessee is spending on their truck payment each week is money that you will be saving. Your fixed expenses may be much lower than theirs.

However, keep in mind that there are also numerous expenses you will need to pay as an owner-operator that a lease driver may not have to worry about. While you can write off your business expenses on your taxes each year, you’ll need to run regularly to make enough money to cover your expenses and to make a living.

Buying Pro: Make Truck Modifications

When you own your truck, you can make as many modifications as you'd like.  Do you want to paint your tractor? Go ahead! Do you want to add chrome rims? Do it! Do you want to add LED strip lights to the outside of your vehicle? LIGHT IT UP! 

Keep in mind that if you want to make modifications — especially to your engine — you will still need to meet regulations, so keep it legal. 

Buying Pro: More Freedom

For some drivers, the major responsibility that comes with being an owner-operator is desirable. As a driver leasing a truck, you’re putting money into a truck that you don’t own. Those weekly payments aren’t going toward the balance on a loan like they are when you buy a truck. You're building equity and paving your own path when you buy a truck.

You're responsible for finding freight and making your schedule; you only have yourself to answer to. It’s a lot of responsibility to take on and a lot of drivers love that.

Buying Con: High Upfront Costs

As an owner-operator, you will either need to buy your truck outright — which requires a huge chunk of cash — or you’ll need to pursue financing. Financing usually requires substantial money down and a good credit score. Without both of these things, buying a truck simply may not be an option for you at this point in your career. Leasing may be a great first step on your path to becoming an owner-operator.

If for some reason the loan on the truck goes into default because you can no longer make payments — maybe a breakdown set you back or you aren’t making enough money to cover the loan — your credit score can take a dive.

Buying Con: High Maintenance Costs

Owner-operators are 100 percent responsible for the maintenance and financial obligations related to owning a truck. If no money is available to pay for repairs, as the owner-operator you will need to find the funds on your own. Lease drivers have to pay for maintenance costs too, but they usually have more options and support from their company.

If you’ve purchased a newer truck, you may not have to do a lot of repairs. Any repairs that pop up may be covered by your warranty in the first couple of years. However, if the cost of a brand-new tractor is too expensive, you may need to purchase an older tractor that is no longer under warranty. The older the truck and the more miles under its hood, the more likely it will need regular repairs.

I’ve seen it happen countless times: an owner-operator doesn’t have the money to fix their truck so they’re left with no truck. 

While a lessee may have rental options when they’re broken down, it’s a lot more difficult to find a rental truck as an owner-operator. You might not be able to find a rental option while you’re down, and on the off chance that you do find one, the costs are usually astronomical.

Should I Buy or Lease a Semi-Truck?

The decision to buy or lease a semi-truck is entirely dependent on your lifestyle and your financial standing. 

You should lease if: 

• You don’t have a lot of cash in the bank
• You feel like you still have a lot to learn about the trucking industry
• You don’t have a lot of truck driving experience
• You want to choose your freight but still have the support of a carrier to provide freight options

You should buy a truck if: 

• You have a great credit score
• You have the funds to purchase a semi-truck
• You have extensive knowledge of the trucking industry
• You desire to be your own boss 

Lease With ATS

In the end, deciding whether to lease or buy a semi-truck depends on your financial situation and personal goals. Leasing offers flexibility with fewer upfront costs and less risk, but may limit your independence and potential earnings. On the other hand, buying gives you full control, but comes with higher financial obligations and responsibility.

Take the time to weigh the pros and cons carefully to ensure that whichever route you choose aligns with both your career goals and financial readiness.

Are you still left wondering what’s next? The more information you have, the more prepared you will feel to make a smart decision with your long-term career options in mind. Carefully research lease and trucking companies to see who will meet your needs. 

Here at ATS, we have high-paying career opportunities for both lease drivers and owner-operators.

Take a deeper dive into the lease program offered at ATS or take our quiz to find out if leasing is right for you.