Should You Rent, Lease or Buy a Box Truck?

If you can, buy. Put at least $10,000 down, finance the rest, and own your truck. If you're not ready to buy, renting for 3 to 6 months is a smart way to test the business first. I don't recommend leasing for most new carriers.

I'm Paul Clark. I've helped new box truck owners get started for over 10 years, and this is one of the first questions they ask me. Here's how I think about each option.

Buying: my first choice

Buying costs you the least over time. Here's how to do it:

• Put down at least $10,000. That's what my truck sales partner needs to get most new carriers financed, approved and handed the keys, new or used.
• Put down more if you can. A bigger down payment means a smaller monthly payment.
• Pay cash if you can. Owning your truck with zero debt is the best position to be in.

What will the truck cost? It depends on the year, make, model, miles and condition. I've seen box trucks sell for $15,000, $40,000 and $80,000, new and used. A dock-high box truck with a liftgate gives you the most load options. Here's which truck I'd buy if you're new, and how to get approved for truck financing.

Renting: a smart way to test the business

Yes, you can haul freight under your own authority in a rental box truck. I've worked with carriers who did very well this way.

The plan I like: get your business set up, rent a truck for 3 months (or even 6), and see your results. If you like the business, turn around and finance a truck to buy.

Just know that renting is a bigger expense every week, and it eats into what you keep.

Where to rent, in the order I recommend:

1. Enterprise Truck Rental
2. Penske
3. Ryder

Enterprise and Penske both have really good maintenance programs, and I hear great things about their service.

Two things to ask before you rent:

• Mileage charges. Every rental company charges for miles, and the rate varies. Ask each one, and do the math against the loads you plan to run.
• Insurance. This is where new carriers get tripped up. The wrong agent can give you the wrong coverage or the wrong price for a rental truck. Talk to my insurance partner before you sign anything (contact info below).

Leasing: why I usually skip it

I'm not a big fan of leasing, and I don't steer new carriers that way. If you're looking at a lease anyway, read the contract closely and ask:

• Is it a lease-to-own or a straight lease? With a straight lease, you hand the truck back at the end and own nothing.
• Is there a balloon payment? Some leases end with a big final payment if you want to keep the truck.
• Are there mileage limits? Going over can cost you extra at the end.
• Who pays for maintenance and repairs?
• What does it cost to get out early?

If you have $10,000, my advice is simple: put it down, finance, and buy the truck.

The “yellow truck” rule

There's an old joke in the industry: stay away from used yellow trucks. I've never known if there's real truth behind it. The idea is that a truck painted for a rental fleet may have had hundreds of different drivers and a hard life.

Plenty of former rental trucks are well maintained, so don't take the color too seriously. Take the lesson seriously: before you buy any used truck, ask for the maintenance records and have a mechanic inspect it.

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Here's more on box truck insurance for a new authority. New to all of this? Start with How To Make Money With A Box Truck.

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