In this economy, trucking companies are struggling. Revenue and earnings are down; capacity is too high; freight is hard to come by; and many trucks are sitting in the lot. With the way things are, it's hard for a carrier to justify buying new equipment. And some companies have started to get creative about where their equipment comes from.

Could leasing be a better option to get fleets through this tumultuous time?

According to Gene Scoggins, the president of NationaLease, more companies are looking at leasing, but not enough are going there yet. "Everybody's counting dollars," he says.

Scoggins, who was appointed to his position in January of this year, came on board during one of the worst economic periods in the industry's history. He says that while some companies are considering the leasing option as an alternative to purchasing, NationaLease is struggling with its members turning in more trucks because they're using them less and don't have the freight to fill them.

Leasing Pluses

However, leasing equipment can offer trucking companies several advantages over buying. For one thing, the financial savings involved with leasing is an attractive option, especially when everyone is trying to pinch pennies, Scoggins says. Many fleets buy when they're looking to the long-term benefits, but for the short term, leasing might be a more practical step to weathering the storm. For many, buying is just not feasible at the moment.

Leasing can also give fleets access to technological advances that they might not otherwise experience, Scoggins says. This is especially true with the upcoming 2010 federal emissions standards of the EPA. Come January, trucking companies will be required to cut emissions, which can be achieved through new engine technologies. For some, this will mean an additional $6,000 to $10,000 penalty to purchase these technologies.

Scoggins says small companies cannot afford to keep up with the new technology requirements and the diagnostic equipment that goes with it. However, these fleets can access the technology and meet the requirements by leasing the equipment at a fraction of the cost.

In addition, leasing companies such as NationaLease offer other services to make a fleet run more efficiently, such as emergency roadside service, substitute equipment when a vehicle breaks down, and drivers. NationaLease also provides contract maintenance, remarketing of used vehicles, integrated logistics and financing.

When considering whether to lease or own, Scoggins recommends sitting down with a leasing company and conducting a lease versus own analysis. He suggests looking at the individual fleet's financial situation, while comparing the finances of a lease option to a purchase option. "It's either a good deal or it's a not a good deal."