Dry Van Trailer Leasing FAQs: What Fleet Owners Must Know

What is Dry Van Trailer Leasing?

Dry van trailer leasing allows fleet owners to use trailers for a specified period without the upfront investment of purchasing. Instead of buying trailers outright, you pay monthly fees to access the equipment your fleet needs.

This arrangement provides immediate access to trailers while preserving capital for other business investments. Leasing companies maintain ownership of the equipment and often handle maintenance, repairs, and administrative tasks that would otherwise fall on your shoulders.

The leasing model has gained traction among fleet owners who value predictable monthly expenses over large capital expenditures. It's particularly attractive for businesses experiencing seasonal fluctuations or those looking to test new routes without committing to permanent fleet expansion.

Essential Dry Van Trailer Leasing Questions Answered

What Exactly is a Dry Van Trailer?

A dry van trailer is an enclosed freight trailer designed to transport goods that don't require temperature control. These trailers typically measure 53 feet in length and can carry up to 81,000 pounds of gross vehicle weight.

Dry vans shield cargo from harsh weather while offering a variety of options for a wide range of freight types. They're the workhorses of the trucking industry, handling everything from consumer goods to industrial supplies across regional and long-haul routes.

What Types of Lease Agreements Are Available?

Fleet trailer leasing offers several structures to match different operational needs:

Full-service leases include maintenance, repairs, and often roadside assistance. The leasing company handles all upkeep responsibilities, making this option attractive for fleets that prefer predictable monthly costs without surprise repair bills.

Net Leases require you to handle maintenance and repairs while paying lower monthly fees. This option is well-suited for fleets with established maintenance capabilities and established relationships with service providers.

Terminal Rental Adjustment Clause (TRAC) Leases offer potential tax advantages by allowing you to claim depreciation benefits. The lease includes a clause that adjusts the final payment based on the trailer's residual value.

Short-term rentals provide flexibility for seasonal needs or temporary capacity increases. These arrangements typically last from a few weeks to several months.

What Are Typical Lease Terms and Duration?

Dry van trailer leasing terms typically range from 12 to 84 months, with 36- to 60-month agreements being the most common. Longer loan terms usually result in lower monthly payments, but they also entail a longer commitment.

Monthly payments depend on several factors, including trailer specifications, lease duration, down payment amount, and your credit profile. Full-service leases typically command higher monthly fees than net leases, as they often include maintenance coverage.

Most agreements include mileage allowances ranging from 100,000 to 125,000 miles annually. Some leases offer unlimited mileage, although these typically come with higher monthly costs.

How Are Maintenance Responsibilities Handled?

Maintenance arrangements vary significantly between lease types. Full-service leases typically cover:

• Routine maintenance and inspections

• Tire replacement and repairs

• Brake system maintenance

• Electrical system repairs

• DOT compliance inspections

Net leases place maintenance responsibilities on the lessee. You'll handle routine upkeep, repairs, and compliance requirements while benefiting from lower monthly payments.

Some leasing companies offer hybrid arrangements where they cover major repairs while you handle routine maintenance. This approach strikes a balance between cost control and protection against unexpected major expenses.

Are There Mileage Restrictions to Consider?

Most dry van trailer leasing agreements include annual mileage allowances. Exceeding these limits typically results in per-mile charges ranging from $0.10 to $0.25 per mile.

However, many fleet owners find that mileage restrictions are less constraining than initially expected. Trailers often accumulate fewer miles than power units, especially in regional operations or dedicated routes.

Some leasing companies offer unlimited mileage programs for fleets with high-utilization operations. These programs eliminate mileage concerns but usually command premium pricing.

What Insurance Requirements Apply?

Leasing companies require comprehensive insurance coverage to protect their assets and ensure their financial stability. Standard requirements typically include:

Liability Coverage of $1 million or more, depending on cargo types and routes. This protects against damages to third parties in the event of an accident.

Physical Damage Coverage, including collision and comprehensive protection. This coverage handles repair or replacement costs if trailers are damaged or destroyed.

Cargo Insurance may be required, depending on the type of freight you haul. High-value cargo often necessitates additional coverage beyond standard policies.

Gap insurance is sometimes recommended to cover the difference between insurance payouts and remaining lease obligations if the trailer is totaled.

Key Benefits of Choosing Dry Van Trailer Leasing

Preserve Capital for Core Operations

Leasing eliminates the substantial upfront investment required for purchasing a trailer. Instead of tying up $30,000 to $50,000 per trailer, you can deploy that capital toward revenue-generating activities, such as driver recruitment, technology upgrades, or route expansion.

Capital preservation becomes particularly valuable during growth phases when cash flow management is critical. Many successful fleets use leasing to maintain financial flexibility while building their operations.

Making the Right Choice for Your Fleet

Dry van trailer leasing offers compelling advantages for fleet owners seeking flexibility, capital preservation, and predictable expenses. The key lies in selecting the proper lease structure and partner for your specific operational needs.

Consider your maintenance capabilities, financial objectives, and growth plans when evaluating lease options to ensure a suitable fit. Full-service leases are well-suited for fleets seeking comprehensive coverage, while net leases are ideal for operations with robust maintenance programs.

Ready to explore how dry van trailer leasing can benefit your fleet? Contact trailer leasing specialists to discuss your specific requirements and receive customized proposals that align with your operational goals. The right leasing partnership can transform your fleet's efficiency and profitability.