Whether to lease or buy a truck comes down to five things: who carries the resale risk, who pays for maintenance, how many miles the truck will run, what each option does to your taxes and balance sheet, and how much flexibility you need. The structures also differ, since a loan, a TRAC lease and a full-service lease each split those costs differently. This page compares them, lists the questions to ask before you sign and gives a formula for comparing total cost over the same term. Schedule a call to track total cost per truck whether you lease or buy.
LEASE VS BUY · LOAN, TRAC LEASE AND FULL-SERVICE LEASE
The Cheapest Monthly Payment Is Not Always the Cheapest Truck
How the three structures split cost and risk, the questions that expose hidden fees and how to compare total cost fairly.
WHO CARRIES THE RISK
LoanYou, fully
TRAC leaseYou on resale
Full-service leaseLessor, with limits
Terms vary. Read the contract.
Loan vs TRAC Lease vs Full-Service Lease: How Each Structure Splits Cost and Risk
A loan buys the truck, a TRAC lease rents it with a purchase option, and a full-service lease bundles maintenance into the payment
The comparison follows an Overdrive buyer's guide updated in October 2026, a First Citizens Bank guide and an older Work Truck article. The Overdrive guide says its terms reflect experienced buyers with good credit and gives no dollar figures in its text. A closed-end lease, where the lessor sets the residual, is a fourth option that trades a higher cost for predictability.
| Factor | Loan (buy) | TRAC lease | Full-service lease |
|---|
| Who owns the truck | You, once financed | Lessor, with a purchase option at the end | Lessor, no buyout |
| Maintenance | You | Usually you; check warranty pass-through | Largely covered, but scope varies |
| Residual value risk | You | You, since the fleet sets the residual | Lessor, with mileage and alteration limits |
| Tax treatment | Depreciation, possibly Section 179 and bonus | Depends on the buy option | Payments generally deducted as expense |
| Monthly payment | Higher than lease | Lower than a loan | Includes maintenance, so higher than TRAC |
| Flexibility | Sell any time, equity builds | Can sell early; settle against residual | Least flexible |
Lenders and lessors wrote most of these guides. A bank, a leasing firm and a trade publication each describe the options differently, and none is independent. Ask an accountant to model your own situation.
Where Truck Procurement and Maintenance Sit in Your Fleet Cost per Mile
Truck and trailer procurement plus repair costs make up a large share of cost per mile, so the lease or buy choice matters
The American Transportation Research Institute reported truck and trailer procurement at about $0.40 a mile for 2025, split into $0.28 for the truck and $0.12 for the trailer, with repair and maintenance at about $0.22. A full-service lease bundles the maintenance line into the payment, while a loan or TRAC lease leaves it with you.
SELECTED OPERATING COSTS PER MILE, 2025. ATRI, AS REPORTED BY FLEETOWNER
Repair and maintenance
$0.22
Leasing some trucks and owning others? Schedule a call and we will put every unit's cost in one record.
Compare cost per mile across leased and owned trucks.
When Leasing Fits Your Fleet and When Buying or Financing Is the Better Fit
Short replacement cycles favor leasing, while long service life and the ability to use depreciation can favor buying
Leasing tends to fit when
Flexible terms and payment timing matter
Replacement cycles are short
You want maintenance and remarketing handled
You want lower monthly payments
You want to keep debt off the balance sheet, where the lease allows
Buying or a loan may fit when
The truck will run many years and miles
You can use depreciation and Section 179
You want to customize the truck
Regulations require you to hold title
You want to build equity
Work Truck's guide, written in 2012 by two leasing executives, adds that leasing may not suit low-mileage use, hazmat work or mostly off-highway operations. The tax points here come from a bank and a trade article, so confirm with an accountant.
Contract Questions to Ask Before You Sign a Truck Lease or Finance Agreement
Hidden lease costs sit in mileage limits, wear-and-tear terms, maintenance exclusions and default terms
The Work Truck article cites closed-end light-duty leases with 12,000 to 15,000 miles a year and overage of 15 to 25 cents a mile. Those are 2012 figures for light vehicles, not heavy trucks, which usually run far more miles, so read your own contract before assuming any limit.
How to Compare Total Cost of Ownership for Lease vs Buy on the Same Term
Put every option on the same term and include maintenance, insurance and resale value in each
OWN
Payments + maintenance + insurance - resale value
Include financing cost and any down payment.
TRAC LEASE
Payments + maintenance + insurance +/- residual settlement
You receive any surplus or pay any shortfall at sale.
FULL SERVICE
Payments + excluded items + overage and wear charges
Maintenance is bundled, but exclusions come back as bills.
1
Estimate miles
Annual miles per truck decide which structure fits
→
2
Price maintenance
Include it in either choice
→
3
Set the residual
Be realistic about resale value
→
4
Check tax
With an accountant
→
5
Compare total cost
Over the same term
Compare Leased and Owned Trucks on One Cost per Mile: Track Maintenance and Total Cost per Vehicle in FleetRabbit
FleetRabbit keeps PM schedules, inspections, work orders and costs for every vehicle in one record, whether you lease or own it, so you can compare maintenance cost per mile and see which structure is working. Free for up to 3 vehicles, then $5 per vehicle per month.
Leased and owned in one list
Cost per vehicle
Service history for turn-in
Free for 3 vehicles
Lease vs Buy for Fleet Trucks FAQs: TRAC, Full-Service, Tax and Resale Risk
Short answers on structures, residual risk, deductions and what to check in the contract
Is it cheaper to lease or buy a truck?
It depends on miles, maintenance, residual value, taxes and how long you keep it. Compare total cost over the same term, with maintenance and resale included in both.
What is a TRAC lease?
An open-end lease where the fleet sets the residual value. At sale you receive any surplus above it or pay any shortfall, and there is usually a purchase option.
What does a full-service lease include?
Maintenance bundled into the payment, with no buyout at the end. Scope varies, and items like tires, brakes and glass may be excluded.
Can I deduct lease payments?
Operating lease payments can generally be deducted as a business expense, while capital leases and purchases allow depreciation, possibly including Section 179. Confirm with an accountant.
Who carries resale risk?
You do under a loan and a TRAC lease. Under a closed-end or full-service lease the lessor carries more of it, with mileage and alteration limits.
What should I check in the contract?
Mileage limits and overage charges, wear and tear definition, maintenance exclusions, default terms, fees and insurance requirements.
What does FleetRabbit cost?
FleetRabbit is free for up to three vehicles and $5 per vehicle per month after that.
Track 3 vehicles free.
Decide Lease or Buy on Total Cost, Then Track It Truck by Truck
Compare the structures on the same term, read the exclusions and keep one cost record per truck so you can see which decision paid off.
Free tier for up to 3 vehicles · No credit card required · Records stored per vehicle
October 17, 2026By Sam Parker
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