What is the cost of Purchasing A Semi Truck in 2022?
When it comes time to purchase your next commercial vehicle, there are many factors to consider. One key question you might have is about the cost of purchasing a semi-truck. After all, commercial vehicles aren’t cheap.
Depending on the make and model of your new truck, the cost of purchasing a semi will vary widely. Fortunately, with a little research, you can get a good idea of what to expect from your next purchase.
The good news is that we have already done that research for you, and in this article, we will go over everything you need to know in order to purchase your next new or used semi-truck.
In this guide, you will learn how much a semi-truck costs, the additional expenses involved with buying a semi, whether you should buy new or used, how much most semi-truck drivers earn, and much more.
How Much Does it Cost to Purchase a Semi Truck?
This is a tough question to answer, as it depends on a few factors. One factor is the make and model of your semi-truck. Next, it depends on the condition of the truck you choose. Some manufacturers list their models as “drivable,” while others state they are “as is” or “where is.”
That said, some good general guidelines can be helpful when purchasing a new semi. As a very basic rule-of-thumb, a high-end semi-truck, such as a Peterbilt or a Kenworth, should cost around $200,000+ if purchased new or around $175,000 used. A mid-range model such as a Freightliner, International, or Volvo truck will be cheaper and can often be found for around $150,000 new or $100,000 used.
However, you also need to consider the other expenses involved with buying a semi-truck. This includes such things as the purchase price of the truck, taxes, and the cost of using it. If you buy a used truck, you should also factor in the cost of repairs.
Other Costs When Purchasing a Semi Truck
When you purchase a new vehicle, you won’t have too many expenses. However, there are some unavoidable expenses associated with owning any semi-truck.
First and foremost, you will need to make sure you have enough fuel to run the truck. Some trucks require a lot of fuel to operate, while others only require a few gallons at a time. It’s a good idea to have a set amount of money for fuel while you’re on the road.
Of course, you will also need to have a license to operate the vehicle. Training and licensing vary in price, but generally speaking, if you don’t already have a license, you should budget around $10,000 for training and licensing. Make sure you also clear your calendar for the training and testing.
Next, you will need to insure the vehicle. Insurance for commercial highway trucks isn’t cheap. You’ll need to shop around and get a few different quotes before making your decision on an insurance policy for your semi. For an average truck driver with an average truck, you’re looking at between $2000 – $18,000 per year for insurance.
Finally, don’t forget about the taxes. When you purchase a truck, whether it’s new or used, you will need to pay tax. It’s important to keep in mind that the tax rate is not based on the purchase price but rather on the truck’s book value. So, remember to inquire about the taxes before finalizing your purchase.
Should You Purchase a New or Used Semi Truck?
The short answer to this question is that it really all depends on your budget. Used trucks will almost always be cheaper to buy upfront. However, new trucks are usually less expensive in the long run because they require fewer repairs and are typically covered under warranty.
Regardless of whether you decide to buy new or used, there are a few things to consider before making your purchase.
First, you should make sure the model you choose fits your company’s needs. This might mean that your next purchase is a bigger model. Or it might mean that you choose a different model.
Next, you need to make sure that your chosen truck is profitable. Remember, some models are more profitable than others. You should always do a lot of research on your truck’s profitability before you make a purchase.
To help you with that task, we have compiled a list of pros and cons associated with purchasing both new and used semi-trucks so that you can decide which option will be best for you, your business, and your budget.
The Pros and Cons of Buying New vs Used
Keep in mind that there may be additional benefits and drawbacks of buying both new and used semi trucks. However, this list details the biggest advantages and disadvantages of each option.
The Pros of Buying a New Semi Truck
- New trucks have the latest technology
- There is a large selection of new trucks to choose from
- New trucks come with a large warranty
- New trucks are often cheaper to operate than used trucks
- New trucks are more profitable than used trucks
The Cons of Buying a New Semi Truck
- New trucks cost more upfront
- The taxes will be higher with a new truck
- New trucks are more expensive to insure
The Pros of Buying a Used Semi Truck
- Used trucks are cheaper upfront
- Used trucks can be a good investment
- Used trucks have lower taxes
The Cons of Buying a Used Semi Truck
- Used trucks may need expensive repairs
- Used trucks are less fuel efficient
- Used trucks cost more to operate
As you can see, the best option is usually to buy a new semi truck rather than a used one. But, if you do your homework, shop around, and get lucky, you may be able to find a profitable used truck that doesn’t require many repairs for a good price.
Consider Leasing or Financing Your Semi Truck
One thing to remember about purchasing a semi-truck is that it will cost a lot of money. However, you can often lease the truck or finance the purchase. These options allow you to get a new or used semi truck without paying the full amount upfront.
Of course, if you have the money to purchase your new truck outright, then that is probably the best option. But new trucks are expensive, and most people don’t have a few hundred thousand in cash on-hand to purchase a semi.
Leasing and financing are great alternative options that can help you get the truck you need today and spread the cost out over the course of several years.
The Benefits of Semi Truck Leasing
For those who don’t want to take on the financial risk of financing a truck, leasing a semi-truck can be a good alternative. With a lease, you have the security of knowing your costs of purchasing a semi truck. At the same time, you don’t own the truck and don’t have to worry about driving it off the lot. Should the need arise to buy a truck, you can simply end the lease and walk away.
There are also a number of other benefits to leasing a semi-truck. First, the lease payments usually include maintenance and fuel. This means you’re getting a truck with fewer out-of-pocket expenses. In addition, since you’re leasing the truck and not buying it outright, you don’t have to pay any taxes on the purchase price. This can help you save thousands of dollars over the lifetime of the truck.
The Benefits of Semi Truck Financing
The downside of leasing a truck is that you don’t own the asset. If you choose to finance your truck, you do own the truck, but you pay for the purchase over time. Typically, you will pay a small percentage of the value of the truck each month until it’s paid off, at which point you are free to sell the truck or do whatever you want with it. There are a number of advantages to financing a truck over owning it. First, you don’t have to worry about maintenance and fuel expenses. This can help save you money in the long run. Plus, financing a truck can help you save a considerable amount of money on taxes. Most truck drivers choose to finance their semi-trucks, but leasing can sometimes be a great option.
Being a Truck Driver is a Good Career
Truck driving is a good career if you are looking for a job that pays well and is flexible. Truck driving can be rewarding in terms of both money and experience. A lot of drivers are self-employed, so they can work when they want to.
While there are some disadvantages to being a truck driver, such as long hours and difficult weather conditions, it’s worth considering if you want to earn a consistent income while being your own boss and travelling across the country or continent.
How Much Can Truck Drivers Earn?
The salary of a semi-truck driver will vary depending on the type of trucking you choose to do, your experience, and the company you work for. Depending on these factors, the salary for a semi-truck driver can be upwards of $100,000 dollars per year, or even more for owner-operators.
Of course, this is assuming a long work week. It’s also important to note that you won’t see these wages right away. New truck drivers will start off with a lower salary while they are still in training, and it could take several years before they have the experience required to earn the highest rates in the industry.
That said, it’s not unreasonable to expect that you will be making a six-figure income after only a few years, as long as you are willing to put in the work and the long hours behind the wheel.
Common Expenses of Truck Drivers
Keep in mind that there are some expenses associated with truck driving, such as insurance and maintenance. You’ll also have to factor in the cost of fuel, as well as new tires and any repairs that may be needed from time to time.
In addition to these expenses, you’ll also be responsible for your vehicle payments. Depending on the type of truck you choose to drive, this can amount to thousands of dollars every month. However, the vast majority of truck drivers are able to pay for these expenses and still make a good amount of profit.
Truck driving is a good career that allows people to work flexible hours and earn a great amount of money. However, in order to get started, you will need a truck. Semi-trucks are expensive. So, what are the cost of purchasing a semi truck? Depending on the age, make, and model, you could be looking at $200,000 or more for a new semi. This is why it makes sense to either finance or lease your truck.
If you decide that you want to finance a semi-truck, then Equipment Finance Canada can help. Equipment Finance Canada works with people who need to acquire industrial equipment, such as semi trucks, and offers great financing options with low-interest rates. So, if you want to get into a brand new or gently used semi today, then be sure to contact Equipment Finance Canada.