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Benefits of Buying ISP Trucks vs. Leasing

As any business owner, ISP contractors are focused on the ins and outs of the daily operation of their routes, so this article is focused on the top benefits of buying ISP trucks vs. leasing, so you can make an informed business decision. If the business side of your ISP business of managing inventory flow, employee management, and truck maintenance and efficiency, isn’t enough, at least leave the truck buying to MAG! We support hundreds and hundreds of Independent Service contractors and have for over ten years. Check our some benefits below.

Before we dig into the benefits of buying ISP Trucks vs. Leasing trucks, let’s understand the top 5 tips for getting started as an independent contractor, for those of you still in the research stage of beginning your own business as an ISP contractor.

Tip #1: Understand the expectations of an ISP Contractor. What are you responsible for – financially, logistically, employee-related, benefits, etc? Create a business plan to assist with bringing clarity to starting your ISP contractor business.

Tip #2: Form a Corporation. The main Delivery Companies only partner with businesses who have legally registered as corporations in their respective states of operation. For addition information on this, you can visit your state’s website and search for “Article of Corporation.”

Tip #3: Research and Find Delivery Route Opportunities.  One of the best websites that offers information on routes for sale is this Contracting Opportunities Site. There are several other sites that offer routes for sale, and can be found through a quick google search. However, be sure you perform the research needed to ensure the sites are reputable. Another great way to find out about new routes is word of mouth from other contractors, the main terminals and your local small business agency.

Tip #4: Secure funding.  As any business is established, the initial upfront costs of starting a business can be daunting. Be sure you have a finance company/lender/bank lined up and ready to work with you. MAG Trucks cannot speak on behalf of other ISP Truck dealers, but MAG offers finance options competitive with other lenders, and will get the process done in-house quickly. You are able to jump start the approval by completing a credit application on the MAG website.
RELATED: Article on Financing ISP Step Vans

Tip #5: Purchase ISP  Step Vans. Not all step vans are created equal. Not all dealers provide the same customer service, warranty, or pricing. MAG Trucks offers over 100 new ISP Trucks and over 50 used ISP Trucks on our lot, ready to be delivered within 7-14 days. Our process is intended to be simple, quick, and straight-forward. RELATED: Article on Guide to Buying an ISP Truck

 

Top Benefits of Buying ISP Trucks vs. Leasing

After securing a Delivery route and your business is established, it’s time to begin the process of evaluating the benefits of buying ISP trucks vs. leasing.  This brings up the question… What’s a Monthly Payment for an ISP Truck? Some contractors continually shell out over $700 A WEEK for lease/rental payments to other dealers for a quick solution to reduce the downtime. Very few contractors can fiscally sustain profitability by paying nearly $3K each MONTH for leased step vans. As very few dealers in the United States offer step vans for purchase, which are ISP ready, upfitted, and ready to be delivered quickly. We can only speak on behalf of MAG Trucks and our ten years of experience, but our process is aimed to make your truck buying experience easy and quick.  Once MAG partnered with the contractors on devising a success, affordable, and sustainable payment to OWN, the Contractors immediately saw the benefits, most notably financially. MAG is one of the few dealers that offers finance options with quick and easy solutions. The below are situations to demonstrate the payments on both a New Truck and Used Truck Purchase; with as little as $0 down (approved credit) to a 20% down payment. Let’s explore the advantages to owning vs. leasing, and get you started on reaping the benefits of your business. The below illustrates the payment structure for buying delivery trucks. This is based on approved credit and an example interest rate.

refurbishment process

What's a Monthly Payment for a FedEx Truck?

 

 

 

 

New Truck  – 20% Down-payment

Sales price     $55,000
20% Down    -$11,000
Loan =           $44,000

[Term – 60 months; Rate – 5.99%]

Payment for a brand new ISP truck: $850.44 / month

New Truck  – 0% Down-payment

Sales price     $55,000
0% Down                $0
Loan =            $55,000
[Term – 60 months; Rate – 5.99%]

Payment for a brand new ISP truck: $1,063.05/ month


 

 

 

Used Truck – 20% Down-payment

Sales price    $38,000
20% Down –    $7,600
Loan –            $30,400

[Term – 60 months; Rate – 5.99%]

Payment for a used ISP truck (20% down): $587.58 / month

Used Truck – 0% Down-payment

Sales price    $38,000
0% Down        $       0
Loan –            $38,000

[Term – 60 months; Rate – 5.99%]

Payment for a used ISP truck (0% down): $734.47 / month


Based on our basic configurations of new and used options, both with 0% and 20% down, from a business standpoint, it’s advantageous to purchase a truck vs. leasing or rent. The tax advantages, business advantages, and cost savings makes this an informative decision. Are you ready to pick our your step van? Give us a call – 816-820-0567