As many people already know, buying any type of vehicle is not cheap. But buying a tractor, or trailer, or both is even more expensive. Not only is buying costly, but purchasing a commercial trailer is usually unnecessary as well. In most cases, people use commercial trailers to transport heavy items from one place to another. Yet, most businesses are not 100% sure which trailer is best suited for their needs. Keep reading to learn more about tractor trailer leasing, requirements for tractor trailer leasing, types of tractor trailers, and more.
What is tractor trailer leasing?
To start, leasing a trailer is not the same as buying a trailer. Oftentimes, leasing a tractor trailer is a better business move than buying one. To be specific, tractor trailer leasing is when you go to a finance company or equipment supplier and contract to use the trailer at a specified rate for a specific period of time, usually 12 months or more. Leasing should not be confused with renting a tractor trailer, as renting is for a short period of time, typically by the day, week, or month. Leasing for 12 months or more significantly reduces the rate you will pay to use the trailer versus renting, thus saving your business big bucks. As to the documentation of a lease or rental contract, they are both written contractual agreements made between you and the equipment supplier or finance company.
What are the types of tractor trailers?
In general, tractor trailer leasing companies have a wide range of options to choose from, which vary in type and size. Depending on your needs, a leasing company or dealer will provide you with the tractor trailer that is best for you. So, it is important for you to know the specifications of your load types to get the most out of your lease. Once you know your specifications, it is also important to know all your options. For instance, here are the most common tractor trailers configurations:
Dry Van Trailers
If you want to complete a shipment of boxed, pallet-based, or loose commodities, dry van trailers are the solution. For example, items like non-perishable food, clothing, and household goods are transported in dry van trailers. Further, common worldwide corporations like Target, Walmart, and Procter & Gamble use dry van trailers to transport their goods. Usually, they are 53 feet with a maximum weight range of 42,000 to 45,000 Ibs. Plus, they are the most common type of trailer on the road.
Standard Flatbed Trailers
Like the dry van trailer, flatbed trailers are also very common types of tractor trailers. Standing 5 feet off the ground with loads up to 8 feet, 6 inches high, the 48-foot flatbed trailer is the most commonly used size. However, there are many other sizes available, like 24, 40, 45, 48, and 53 feet. Also, flatbed trailers are quite versatile as there is no container to house the contents. Further, flatbed trailers are great for oversize loads, such as: lumber, construction equipment, steel, and other open-air commodities. Plus, the open back and sides make it easy to load items with an overhead crane or forklift. Finally, to secure loads on a flatbed trailer, you must use straps, chains, and various tarping solutions.
Refrigerated Trailers (Reefers)
Next, refrigerated trailers (also known as reefers), have insulated walls and temperature control refrigeration units attached. This makes it perfect for transporting perishable goods. For instance, this type of trailer transports ice cream, fruit, pharmaceuticals, and more. Also, refrigerated trailers can carry 42,000 to 45,000 pounds. Further, the maximum height of a reefer ranges from 8 feet to 8 feet, 2 inches. And the maximum width is 8 feet, 2 inches. Thus, refrigerated trailers are similar to dry van trailers as they cannot haul any load that is larger than the length of their deck.
Along with the other types of tractor trailer leasing options, drop-deck or step-deck trailers are also quite common. As a matter of fact, they are usually used as an alternative to flatbed trailers. This is because of the added height capacity combined with the simple flatbed trailer. For the specifications, this type of trailer can haul loads up to 10 feet, 2 inches in height. Plus, drop deck trailers are only 3 feet, 6 inches off the ground compared to flatbeds, which are usually 5 feet off the ground. Also, the 53-foot version of the drop deck trailer lengths are 10 feet for the upper deck and 43 feet for the lower deck.
Finally, the versatility and ability to haul heavy loads makes this type of trailer popular all over the world. As a result, drop deck trailers are ideal for hauling machinery as well as agricultural and building materials that fit beneath their 10-foot 2-inch ceiling.
Double Drop/Lowboy Trailers
Finally, another common type of tractor trailer leasing option is the double drop or lowboy trailer. Compared to the other trailers, this one is very low to the ground. So, lowboy trailers can carry tall pieces of machinery. But the maximum height for a load on this trailer is 11 feet, 2 inches. Further, they have a weight limit of 40,000 pounds (about 18,143.68 kg) to 80,000 pounds (about 36,287.36 kg). However, the weight limit greatly depends on the number of axles. Still, this tractor trailer leasing option is ideal for hauling heavy loads. For example, a double drop trailer is commonly used to transport large equipment like industrial and farm equipment that needs to be moved to/from one job site to another.
|Type of Tractor Trailer||Description|
|Dry Van Trailers||
|Standard Flatbed Trailers||
|Refrigerated Trailers (Reefers)||
|Double Drop/Lowboy Trailers||
Although these are the most common tractor trailer leasing options, there are some other ones that are great for certain jobs. To be specific, these include hotshot trailers, Conestoga trailers, extendable drop-deck trailers, RGN trailers, and extendable RGN trailers.
How to tractor trailer leasing?
To do tractor trailer lease, all you need are a few things. First, you need a business plan. Second, you need a motor carrier number. truck insurance, and satisfactory credit history. Here is a simple list of what you need:
- Business plan
- Motor carrier number
- Truck insurance
- Satisfactory credit history
As you can see, tractor trailer lease does not require much. So, if you want to start your business without having to overspend, contact TEL360 today!
What are the benefits of tractor trailer leasing?
In general, there are a variety of benefits for tractor trailer leasing.
No Credit Check
Usually, if you want to lease something, you must prove that you have good credit through a credit check before a leasing company will sign a lease contract with you. So, if you have week credit, you can potentially still lease a tractor trailer. However, you will have to pay a much larger security deposit and more than likely a higher lease rate than someone with good credit.
Lower Down Payment
Although you may have to pay a larger down payment if you have week credit, the security deposit required is still usually far less than a down payment would be if you purchased a tractor trailer. Because of this, you can start your business sooner instead of having to save up and wait to process a loan. Also, you have the option to choose a company that does not require a security deposit. But you will need to have a good credit score.
Flexible Payment Plans
In addition to lower down payments, tractor trailer leasing companies typically offer flexible payment plans. Depending on the company you choose, private leasing companies have the option for you to start a payment plan. Then you can increase your payments over time.
Lease to Own
At time tractor lease agreements allow you to buy a truck at the end of the lease period. In most cases when a buyout is allowed, the buyout price (otherwise known as a purchase option) is stated in the contract. A trailer lease can also have this feature; however, it is not typically done.
Option to Upgrade
Finally, if you do lease a tractor trailer , you can upgrade the trailer after the lease term is finished.
TEL – Commercial Truck Leasing
TEL (Transport Enterprise Leasing) has been a top choice for selling trucks and trailers as well as remarking used equipment for carriers since 2004. In addition, since 2011 we have leased trucks and trailers to a variety of customer types as well as offering our customers a number of value-added support services. In the year 2013, TEL started offering new equipment leasing programs for fleets and lease purchase programs. TEL’s new and lightly used truck and trailer lease solutions are a way for fleets and owner operators to grow their businesses with minimal down time. This new and like new equipment along with access to repair and maintenance services at discounted prices, like the big fleets, results in more fleet owners and independent operators finding success through TEL.
With more and more people benefiting from our lease service concept through their own first-hand success, our customers return to us time and time again while referring TEL to their friends at a grass roots level. Due to the diversity and value added services TEL offers, we recently updated our web presence to TEL360.com to help our customers understand we are more than just a truck leasing and sales company.
Whether you want to start your own business as an owner operator or want to lease a fleet of trucks and/or trailers for your business, TEL360 has everything you need for success. TEL provides world-class support services and offers the new and lightly used best-value trucks and trailers at sustainable rates, which minimizes maintenance expense to the user. Thus, saving our customers money. Ultimately, we believe everyone deserves the chance to make their dreams come true. So, if you’re ready to start your business or add to yours today, give us a call to ensure your success. We’re here for you every step of the way!