So my LLC is finally at the point where we're doing enough local deliveries that I'm renting a u-haul 2-3 times a week. Boss (me) is tired of it. Thinking about financing a used box truck. Accountant says depreciate it, mechanic friend says run. Any of you actually bought a truck for your small biz? Worth it or regret?
Logistics
Should my LLC purchase a delivery truck?
Rented uhauls 2-3x a week for 6 months, did the math. Insurance + payment + maintenance was way more than the rental costs for me. Depends on how far you're driving though.
If you're gonna buy used, get a pre-DEF truck. The emissions stuff on newer newer diesels will eat you alive on repair bills. My 07 Fuso is ugly as sin but starts every time.
What's your delivery radius? If it's all under 50 miles and you're not hauling crazy heavy, a used cargo van might be cheaper to run than a box truck. Easier to park too.
Did exactly this 2 years ago. Bought a 2016 Isuzu NPR. Best decision for me but I was delivering construction materials and renting was killing my margins. The freedom of not scheduling around the rental place was bigger than the cost savings. But seriously, get a quote on commercial insurance BEFORE you buy. That number surprised me.
Radius is about 40 miles on avg, some days farther. Mostly furniture and fixtures, nothing super heavy. Insurance quote is my next step. Renting has just gotten old.
Furniture/fixtures at 40 miles = cargo van territory IMO. You can get a used Transit or Sprinter for half a box truck and they're way more maneuverable in residential areas.
Just pay cash for a beater van, and keep your cash flow. Financing a depreciating asset as a tiny LLC is how people end up selling a truck for less than they owe.
lol @ grumpy_hedgehog giving the boring adult answer. but yeah he's not not wrong. only finance if you actually need the box truck volume.
Also think about where you park it. My neighbor runs a small delivery thing, and got a nastygram from the HOA for having a box truck in his driveway. apparently 'commercial vehicle' rules are a thing.
Check if you can write off the full purchase price under Section 179 if you're buying used. My CPA set mine up that way. Changed the math a lot for me.