Purchasing a semi truck is one of the largest investments a business owner will make.
Make the right choice and watch your business soar. Make the wrong choice and watch money drain out of your bank account every month. Considering new trucks start around $200,000 and used trucks can be had for a small fraction of that price… Figuring out which option is best for your business isn’t always black and white.
The good news is:
Once you know what to look for any business owner can invest in a semi truck that fits their budget and keeps their trucks on the road.
In this article:
- Why The New vs. Used Debate Is So Important
- New Truck vs Used Truck: What You Really Pay
- Don’t Forget About Commercial Truck Leasing
- Making The Best Decision For Your Business
Why The New vs. Used Debate Is So Important
There’s a reason the cost of new vs. used trucks is debated so much.
The trucking industry is huge. Generating $906 billion in gross freight revenue in 2024 alone ATA. And with about 91.5% of all carriers owning fleets of 10 trucks or less, small businesses are reaping the majority of those profits.
Every penny matters.
If it’s your first truck or your fifth truck that’s joining an expanding fleet, your decision will impact monthly payments, maintenance costs and your bottom line. That’s why options like commercial truck leasing through a reputable semi truck dealer in Memphis have become so popular.
They allow business owners to weigh their options and pick what works best for their unique circumstances.
But wait… there’s more
Yes, there are benefits to leasing. But there isn’t a one-size-fits-all answer to this dilemma. New trucks vs used trucks both have their pros and cons.
The key is to understand how each option aligns with your businesses goals, cash flow needs and long-term plans.
New Truck vs Used Truck: What You Really Pay
The biggest difference between new and used trucks is obviously cost.
A brand new semi truck can cost anywhere from $120,000 to $200,000+ depending on make, engine options and additional features. Whereas you can typically find used semi trucks for somewhere between $45,000 and $100,000.
That’s a big chunk of change.
New Semi Trucks
If you buy new you’ll obviously benefit from the latest technology, full warranty and the reassurance of knowing no one has ever driven your truck off the lot.
The downside?
Depreciation. New trucks lose 20-30% of their value in the first year. That’s a big expense that you’ll never see again if you sell the truck after a few years. And for small fleets watching budget it can make a huge impact.
However, they do hold their residual value better over time and have cheaper maintenance costs and better MPG in the first few years. So if you plan on keeping your truck 5-7 years those savings could really add up.
Used Semi Trucks
This is where most small businesses will spend their time researching. Because face it… who doesn’t want to save money?
A good used truck with about 400,000 miles can be found for around $60,000. You can even find older trucks in the $40,000 range if you’re okay with high miles. That leaves more money in your budget for insurance, fuel and driver salaries.
Of course, there are tradeoffs…
- You’ll likely pay more in maintenance and repairs
- Don’t get factory warranty (suppose you do if you buy certified pre-owned)
- May not meet newer emissions standards
- And overall lifespan will be shorter
As with any used vehicle, you run the risk of truck malfunction. The key is buying from a reputable dealer that offers certified pre-owned trucks. When done correctly buying used can be a great way to stretch your dollar.
Don’t Forget About Commercial Truck Leasing
Believe it or not you don’t even have to buy your truck if you don’t want to.
Leasing trucks has gained major popularity over the last decade. And for good reason. Here’s what you need to know.
Instead of paying full price for a new or used semi truck, your business will make monthly payments to lease the vehicle from a lender. Once the agreed upon lease term is up you can usually buy, return or upgrade the truck.
Here are a few benefits of truck leasing:
- Lower initial investment and down payment
- Easy to budget for monthly payments
- Allows businesses to operate newer trucks
- Leases are tax deductible
If you’re looking to expand your fleet quickly leasing may be right for you. You can also lease a truck as a way to avoid the hassles of depreciation and resale value.
Making The Best Decision For Your Business
So how does an entrepreneur decide whether to buy new, used or lease?
Ask yourself a few questions…
How Much Money Do You Have?
This should always be your first question. How much money do you have to work with? Can you afford the down payment and monthly payments on a new truck? Do you have enough in the budget to cover unexpected repairs if you buy used?
Leasing may be a good middle ground if you’re struggling to nail down numbers.
Where Will You Be Trucking To?
How will the truck be used? If you plan on putting hundreds of thousands of miles on your truck every year then you might as well buy new and enjoy that MPG. If your routes are primarily local or regional you may be able to get away with a used truck.
How Much Are Maintenance Costs?
Annual maintenance on a semi truck can range from $15k-$25k depending on age and condition of the truck. A new truck will be on the lower end of that spectrum and older used trucks will be on the higher end. At the current moment the freight trucking industry brings in approximately $2.2 billion, by 2030 it’s expected to reach $3.4 billion. Take advantage of that profit by knowing your costs ahead of time.
Where Will Your Business Be In 5 Years?
Finally, what are your goals for the business in the next few years? If you plan on scaling quickly leasing trucks can allow you that flexibility. If you plan on owning your assets long-term buying new or used makes the most sense.
To Recap…
Purchasing new or used semi trucks is a big decision.
New trucks give you reliability and that brand new feeling but come with steep depreciation.
Used trucks save you money but may lead to costly repairs.
And leasing trucks helps your business stay flexible while keeping monthly costs low.
Only you can decide which option is best for your business.
At the end of the day, just make sure you’re making an informed decision. The right semi truck at the right price can help power your business for years to come.