When you finance a service truck or cargo van, the monthly payment is the number everyone focuses on. But the payment is only part of what the truck costs you. Contractors who budget for the full cost of keeping a work vehicle on the road can plan their cash flow and know what they can afford. Those who don’t get caught off guard by the bills that come after delivery.
1. The payment and the structure behind it
Start with the financing itself. A loan with a $1 buyout, a fair-market-value lease and an equipment finance agreement can all have different monthly payments, down payments and end-of-term options. The right one depends on how long you’ll keep the truck and how you want it on your books. See how service truck financing and cargo van financing work, or compare options for contractor financing.
2. Upfitting
A bare chassis doesn’t do the job. Service bodies, shelving, ladder racks, toolboxes, cranes and lift gates can add a lot to the cost of a work truck or van. Find out whether the upfit can be included in the financing, so you don’t pay for it out of working capital.
3. Commercial auto insurance
Commercial policies cost more than personal auto, and the price depends on the vehicle, its use, its drivers and your claims history. Get a quote before you sign for the truck, not after. Check the deductibles for comprehensive coverage too, since that’s usually what pays for glass, theft and weather damage.
4. Fuel
For many contractors, fuel is the largest running cost after the payment. Estimate it from the miles your crews actually drive per week and the truck’s real-world fuel economy loaded, not the window sticker.
5. Tires, brakes and scheduled maintenance
Heavier trucks carrying tools and materials go through tires and brakes faster than passenger vehicles. Build oil changes, inspections and routine service into your budget per truck, per month, so a full set of tires doesn’t hit all at once.
6. Windshields and glass
Work trucks spend their days on freeways, in construction zones and on job sites, so rock chips and cracked windshields are a normal cost of doing business. A cracked windshield in the driver’s view is a safety issue, and on newer trucks and vans with windshield-mounted cameras, a replacement usually also needs ADAS calibration. Fixing chips early is cheaper than replacing the glass later. For contractor fleets in California and Texas, Reyes Glass Group’s mobile fleet auto glass service replaces windshields and side glass at your yard or job site, so the truck doesn’t lose a day at a shop.
7. Registration, permits and downtime
Annual registration and any permits or tolls your routes need belong in the budget. So does downtime: the days a truck is in the shop are days it isn’t earning. Having a plan, like a spare vehicle or mobile service providers, keeps one breakdown from stopping a crew.
Putting it together
Add the payment, upfit, insurance, fuel, maintenance, glass and registration for one month, and compare it to the revenue that truck will bring in. If the numbers work, financing lets you add the vehicle without draining the cash you need for payroll and materials.
Liberty Capital Group finances service trucks, cargo vans and commercial trucks for contractors, including new and used vehicles. Get a quote online, or call us at 888-511-6223. All financing is subject to credit approval.