Is truck leasing profitable?

What is truck leasing?

Truck leasing is a form of financing which allows entrepreneurs to use vehicles without having to purchase them immediately. In practice, leasing involves signing a contract with a leasing company, which buys a selected vehicle and gives it to the lessee for use in exchange for fixed, regular instalments. At the end of the contract, it is possible to buy back the vehicle on negotiated terms or return it.

Popular types of leases

• Operating lease – the most common choice in the transportation industry, since lease instalments are fully deductible, and VAT is accounted for with each instalment. At the end of the contract, it is possible to buy back the vehicle.
• Finance lease – resembles a loan, as the vehicle is immediately included in the lessee’s assets. VAT is paid in full upfront, which may be less advantageous for transportation companies.

Truck leasing is often compared to other forms of financing, such as loans or long-term rentals. Each of these solutions has its pros and cons, which we will discuss in detail later in this article.

How much does it cost to lease a truck in 2025?

The cost of leasing a truck depends on several key factors, such as the value of the vehicle, the length of the contract, the amount of the initial payment and the type of lease. To illustrate the cost, below is a sample calculation for a truck with a net value of PLN 300,000.

1. Initial fee:
   It generally ranges from 10% to 20% of the vehicle value. Assuming 10%, the initial fee will amount to net PLN 30,000.

2. Monthly instalments:
   • With a 5-year operating lease, the instalment is on average 2.5-3% of the value of the vehicle. At PLN 300,000, this means an instalment of about PLN 7,500-9,000 net per month.
   • Finance leases often have lower monthly payments, but require VAT to be paid up front.
3. Additional costs:
   • Insurance: full AC/OC insurance is mandatory in leasing, which for a truck can range from PLN 8,000 to PLN15,000 per year.
   • Handling fees: depend on the leasing company, averaging between PLN 500 and PLN 2,000 each time.
4. Buyout option:
   • At the end of the lease agreement, the buyout of the vehicle is usually 1-20% of the initial value. For the example above, this could be anywhere from PLN 3,000 to PLN 60,000 net, depending on the terms of the agreement.

Example of a 5-year operating lease

• Vehicle value: PLN 300,000 net
• Initial fee: PLN 30,000 net
• Monthly instalments (average): PLN 8,000 net × 60 months = PLN 480,000 net.
• Buyout cost: PLN 15,000 net (5% of the vehicle value)

Total lease cost: PLN 525 000 net

Although leasing involves additional costs, benefits such as VAT deductibility and not having to make a large initial investment make it a viable solution for many transportation companies.

Leasing and VAT deductions

Truck leasing is a particularly tax-advantageous solution, as it allows VAT to be deducted from both lease instalments and the initial payment. What does this look like in practice?

Entrepreneurs can account for VAT on each lease instalment and on the initial payment, which reduces the financial burden during the term of the contract. If the car is used exclusively for business purposes, VAT can be deducted in full. For vehicles used for both business and private use, 50% VAT is deductible. Moreover, operating expenses, such as fuel, repairs and insurance, can also be deducted, with proper documentation.

Buying a truck out of a lease

A truck can be bought out of a lease at the end of the contract, allowing a business to purchase a used vehicle for a contractually agreed amount. The cost of a buyout in an operating lease usually ranges from 1% to 20% of the vehicle’s initial value and depends on the terms of the contract. The decision to buy out should be preceded by an analysis of the vehicle’s technical condition, its market value and future fleet needs. In many cases, a buyout is cost-effective, especially if the vehicle still meets the company’s requirements.

Lease or loan for a truck  –  which one should you choose?

Truck leasing is a better option for companies that want to avoid high upfront costs and take advantage of tax benefits such as VAT deductions on instalments. A loan, on the other hand, will work well for companies that prefer full ownership of the vehicle and can afford a larger commitment of capital from the start.

Leasing is more flexible as regards terms and procedures, making it more attractive to younger companies or those with limited creditworthiness. Conversely, a loan, may be more advantageous for companies with a strong financial position that plan to use a vehicle for the long term without the restrictions of a lease agreement. The choice depends on a company’s individual capabilities and financial strategy.

Pros and cons of a truck lease

• Lower initial costs.
• VAT deductibility.
• Flexibility in financing.
• Easier to obtain.
• Possible to buy back the vehicle.
• No full ownership until the vehicle is bought out.
• Annual mileage limit imposed by contract.
• Risk of additional costs.

Deciding on a lease requires an analysis of the company’s needs, its financial capabilities and the expected intensity of vehicle use. Leasing can be very beneficial, but it is not an ideal solution in every situation.

Truck leasing in a nutshell

Truck leasing is a flexible and advantageous solution for trucking companies that want to grow their fleet without committing a lot of initial capital. With VAT deductibility and simple procedures, leasing is often a better alternative to a loan or rental. However, before making a decision, it is worth carefully analysing the costs, terms of the contract and the needs of the company to choose the most favourable option. Ultimately, leasing can be a cost-effective tool to support the development of a transport company, as long as you do not overestimate your capabilities at the beginning.