Truck Leasing Key Terms

Get into the driver's seat by learning truck leasing key terms

If you're in a business that operates a fleet of trucks, chances are you'll be looking into truck leasing. Before you contact a leasing company, you'll benefit from learning truck leasing key terms. From full service truck leasing to a tax exempt municipal lease, you'll be able to find exactly the kind of lease that best fits your business needs.

 

Full service lease

A full service lease is a great option for commercial truck leasing. A full service lease not only provides the trucks, but preventive maintenance, repairs, replacement trucks if necessary, display of company logos, and more.
Try: Idealease gives a full explanation of the features of a full service lease.

Skip lease

If you're leasing trucks for a seasonal or recreational business, you might want to explore a skip lease. A skip lease is an option that allows you to arrange time periods when payments will not be made.
Try: Find a brief description of a skip lease at eLease.

Fleet leasing

Fleet leasing pertains to a leasing option that specifically addresses business leasing. If you need to lease a fleet of trucks for your business, fleet leasing will help you address your needs as well as save you money.
Try: Entrepreneur provides a thorough explanation of fleet leasing, including its benefits and pitfalls.

Open-end and closed-end leases

The two most common types of commercial truck leasing programs are open-end or closed-end truck leases. Open-ended leases provide full use of leased trucks, with a pay-out at the end of the lease. Closed-end leases offer a buy-out option.
Try: Triple-AAA Financial Service and Investment Agencies gives an explanation of both open-end and closed-end truck leases.

Operating lease

Many companies offer businesses an operating lease. An operating lease allows a business to write off lease payments as an operating expense, resulting in a tax break.
Try: CT Financing gives a detailed definition of operating lease.

Municipal lease

Many leasing companies offer a municipal lease, also known as a tax exempt lease, for cities, counties, state agencies and school districts. Low interest rates and special payment terms are just some of the benefits of a municipal lease program.
Try: First Municipal Leasing Corporation describes a municipal lease.

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