Updated November 07, 2026
Quick answer
On a $150,000 tandem at an illustrative 8% over 60 months, a loan runs about $3,041 a month and a TRAC lease about $2,327-$2,633, depending on the residual. The catch: on a TRAC lease you generally stand behind that residual when the term ends. Axiant Partners, a business-loan broker in Boca Raton, compares dump truck lenders and lessors. Typical rates run 6-15%, so these are examples, not quotes.
How Dump Truck Leases Usually Work
When a hauler says “lease” it usually means a TRAC lease, or terminal rental adjustment clause. It sets a residual up front, and only the rest is paid down during the term. At the end, the truck is typically sold or bought. If it sells for less than the residual, you cover the difference; if it sells for more, the surplus generally comes back to you. Our TRAC lease guide covers the structure in general, with residuals of about 20-40% of cost.
| Equipment loan | TRAC lease | FMV lease | |
|---|---|---|---|
| Monthly payment | Highest | Lower | Often lowest, when offered |
| Who carries resale risk | You | You, through the residual | Mostly the lessor |
| Balance at end | None | The residual | None, if you return it |
| Hours and wear | Your problem at resale | Hits your residual | Return standards apply |
| Best fit | Keep it for its life | Replace every few years | Light use, rarely available |
Many lessors are cautious about a true walk-away lease on a truck that spends its life on rough ground, which is why TRAC is the usual offer.
Worked Example: The Math on a $150,000 Tandem
Illustrative, not a quote. A $150,000 tandem, inside the $120,000-$180,000 we list for tandems on our dump truck financing page, with nothing down, 8% and 60 months.
| Structure | Monthly | Paid over 60 months | Owed at the end | Total |
|---|---|---|---|---|
| Loan | About $3,041 | About $182,490 | $0 | About $182,490 |
| TRAC, 20% residual | About $2,633 | About $157,990 | $30,000 | About $187,990 |
| TRAC, 35% residual | About $2,327 | About $139,620 | $52,500 | About $192,120 |
A bigger residual saves more each month and costs more overall. The higher payment on the loan buys ownership with nothing left to settle. Compare the result to what a truck might be worth: we note that vocational chassis often hold 50-70% of value after five years, which would put $75,000-$105,000 against those residuals if yours holds up, and a well-kept truck would leave a surplus. Poorly kept ones are the risk.
Why Vocational Wear Changes the Risk
A dump truck isn't a highway tractor, and its resale value depends on things a mileage reading can't show:
- Engine hours. These trucks idle on site, so hours often say more than the odometer.
- Body and hoist. Abrasive loads wear floors, sidewalls and hydraulics, which buyers check.
- Frame and suspension. Overloading and off-road use show up here at inspection.
- Axle configuration. Bridge laws and local demand affect who can buy a given truck.
On a TRAC lease all of that lands on you at the end, so a low residual is the safer choice if your work is hard on trucks. Keep service records in one place. They support the sale whichever structure you pick.
Excise Tax and Road Tax
Two federal taxes matter on larger trucks, so ask how each offer treats them.
| Tax | What it is | What to ask |
|---|---|---|
| Federal excise tax | 12% on the first retail sale of truck chassis and bodies over 33,000 lb GVW | Is it in the price being financed or leased? |
| Heavy vehicle use tax | Form 2290 for vehicles with a taxable gross weight of 55,000 lb or more | Who files and pays during the lease? |
On a new $150,000 truck the excise tax can be a large line, so it has to appear in the quote you compare. See 26 U.S.C. 4051 and IRS Form 2290. Lease and loan payments are deducted differently, and a lease with a nominal buyout may be treated as a purchase, so ask your CPA before you choose for tax reasons alone. UCC 1-203 sets out the legal test for a true lease.
Matching the Structure to Your Work
- Seasonal hauling. A lower TRAC payment helps in winter, but the residual is still due. Ask about seasonal payment schedules on either structure.
- A long site-work contract. If the job lasts three years and the truck stays busy after that, a loan builds equity you can use later, including by borrowing against a dump truck you own.
- Growing fleet. A lease may keep payments down while you add units, but each residual is a future bill, so track them together.
- New company. Expect more down or a cosigner on either one. Start with used dump truck financing if a new unit is out of reach.
Keep operating costs separate: use working capital for fuel and payroll, and the equipment structure for the truck.
Questions to Ask Before You Sign
- Is the residual a guarantee? Ask what you owe if the truck sells below it.
- Who sets the sale price? Find out how the end-of-term value is determined.
- What are the end options? Buy, sell, refinance or roll into another truck.
- What's in the amount financed? Excise tax, body, hoist and any upfit.
- What happens if you exit early? Get the early-termination formula in writing.
- What's the total? Add every payment, the residual and fees.
Then get matched and compare a loan and a lease on the same truck. For related work see construction business financing. Credit and terms vary by lender, and most start around 600 credit with 0-20% down.
Frequently Asked Questions
Is it better to lease or buy a dump truck?
Buy if you'll keep it for most of its life, since a loan ends with no balance. A TRAC lease lowers the payment if you replace trucks every few years, but you generally stand behind the residual. In our $150,000 example, a 20% residual costs about $5,500 more overall than the loan.
How much is a dump truck lease per month?
In one illustration, a $150,000 tandem at 8% over 60 months is about $2,633 with a 20% residual and about $2,327 with a 35% residual. Those are examples, not quotes.
What is a TRAC lease on a dump truck?
It's a lease with a preset residual at the end. If the truck sells for less, you generally pay the difference. If it sells for more, the surplus generally goes to you.
Can I just return a leased dump truck?
On a TRAC lease, not without settling the residual. A true fair market value lease allows a return, subject to wear standards, but those are less common on trucks used this hard.
Does the 12% excise tax apply to a dump truck?
It applies to the first retail sale of truck chassis and bodies suited to a gross vehicle weight over 33,000 lb, which covers many tandems and tri-axles. Ask whether it's already in the price.
Can a new company lease a dump truck?
Sometimes, but usually with more down, a cosigner or strong personal credit. Used trucks and smaller units can be easier to place.
Sources & Further Reading
- 26 U.S.C. 4051: Imposition of tax on heavy trucks — The 12% federal excise tax on the first retail sale of truck chassis and bodies over 33,000 lb gross vehicle weight.
- IRS: About Form 2290 — The heavy highway vehicle use tax on vehicles with a taxable gross weight of 55,000 lb or more.
- UCC 1-203: Lease distinguished from security interest — How the law separates a true lease from a financing, including nominal purchase options.
Figures above describe ranges commonly seen across lenders and reflect published guidance as of the date on this page. Confirm current terms with the cited source or your lender before acting.