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If you are planning to add an Ashok Leyland truck to your fleet in 2025, you might be wondering: “Is it better to buy or lease a commercial truck?” Choosing between purchasing and leasing depends on factors like upfront costs, long-term expenses, tax benefits, and how frequently you plan to upgrade your vehicle.
Before deciding, let’s break down what buying and leasing a truck actually mean.
When you buy a truck, you either pay the full amount upfront or finance it through a loan. Once the loan is repaid, you fully own the vehicle and can continue using it without monthly payments.
Leasing means you rent the truck for a fixed period (usually 3 to 5 years) while making monthly payments. At the end of the lease, you may have the option to buy the truck or return it and lease a new one.
Business owners often ask: “What are the advantages of buying a commercial truck?” Here are some key benefits:
Full Ownership – You own the truck once the loan is repaid.
No Usage Restrictions – Unlike leasing, there are no mileage limits or restrictions on modifications.
Better Long-Term Savings – Over time, buying is more cost-effective than leasing.
Asset for Your Business – The truck becomes a business asset that adds value.
Higher Initial Costs – Down payment and loan EMIs can be expensive.
Depreciation – The truck’s value decreases over time.
Maintenance Responsibility – You are responsible for all repairs and upkeep.
Many transporters search: “Is leasing a truck better for a small business?” Here’s why leasing could be a good option:
Lower Upfront Costs – No large down payment required.
Fixed Monthly Expenses – Predictable costs make budgeting easier.
Easy Upgrades – Lease new models every few years to keep up with technology.
Lower Maintenance Costs – Some leases include maintenance packages.
No Ownership Equity – You don’t own the truck at the end of the lease.
Usage Restrictions – Leases often have mileage limits and customization restrictions.
Long-Term Cost May Be Higher – Continuous leasing can be more expensive than buying.
To help you decide, let’s compare the estimated costs of buying and leasing an Ashok Leyland truck in 2025.
| Factor | Buying | Leasing |
|---|---|---|
| Initial Payment | ₹5-10 lakh (down payment) | ₹1-2 lakh (security deposit) |
| Monthly Cost | ₹40,000 - ₹70,000 (EMI) | ₹30,000 - ₹50,000 (lease payment) |
| Ownership | Yes, after loan repayment | No, must return or buy after lease ends |
| Maintenance Costs | Paid by owner | Often covered in lease |
| Upgrades | Requires selling old truck | Lease a new model every few years |
| Tax Benefits | Depreciation and interest deductions | Lease payments are tax-deductible |
Still wondering: “Should I buy or lease a truck for my transport business?” Here’s how to decide:
You plan to use the truck for more than 5 years.
You want to build assets for your business.
You prefer no mileage restrictions and full control over the vehicle.
You want lower upfront costs and predictable expenses.
You plan to upgrade your truck every few years.
You prefer less maintenance responsibility.
Both buying and leasing have their own advantages. If you want long-term savings and full ownership, buying is the better choice. However, if you prefer lower initial costs and frequent upgrades, leasing can be a great alternative. Evaluate your business needs, financial situation, and long-term plans before making a decision.
