Factory WarrantiesOct 25th, 2013 | By Editorial Staff | Category: Jack Schrock's Blog
Please take note of the Over-The-Road truck lines, which seem to be running new equipment that looks good and runs good (most of the time). To do that, many opt for three-year, full-maintenance leases that take the misery out of engine failures and major repairs during the lease term. Then they turn them in for a new replacement and start all over again with another new power unit on a full-maintenance lease.
The late Donnie Cruse and I once visited the GE fleet maintenance headquarters in Minneapolis for the purpose of offering some field service in remote areas for their full-maintenance leases. Much to our surprise, GE had the entire country covered, even those isolated areas in the Southwest and Midwest. A certified mechanic answers the phones 24/7 and discusses the drivers’ complaints. Once understood, he finds nearby service providers that are pre-qualified to handle the problem. Believe me, this is not a commercial for General Electric but I can say that whatever GE does, they usually do very well — including full-maintenance truck leases.
In addition to the benefits of operating new, reliable equipment, there is also the consideration of tax benefits derived from such short-term leases as opposed to purchases and depreciated ownership. However, that is a matter best handled by your CPA or financial advisor.
If you’re running up excessive mileage, short-term full-maintenance leases could be something to consider.