Trucking and transportation companies: Here’s helpful data for setting appropriate rates for your related-party leasing company.
This article was originally published on February 7, 2019. It was updated to reflect the rates for the remainder of 2019.
Many trucking and transportation companies hold their equipment in a separate leasing company and charge rent to the operating entity. This may be done for liability protection, financial planning, and cash flow management, among other reasons.
Download the Wisconsin fair market value lease rates.
The leasing company’s ownership structure is often similar to, if not the same as, the operating company’s, so the leasing company would be considered a related party. It is important to operate the leasing company at arm’s length to maintain the liability benefits of having the equipment in a separate entity and protect the businesses in the case of an audit.
Part of operating a leasing company at arm’s length means charging a fair market value rent. If you lease tractors and trailers, here are baseline data you can use as a guide in setting rent rates through December 2019.
Tractor lease (four-year class life)
| Weekly rent rate (5-day week) |
Monthly rent rate | ||||
|---|---|---|---|---|---|
| Age | Day cab | Sleeper | Day cab | Sleeper | |
| 1 year | - | $920 | $1,030 | $3,970 | $4,460 |
| 2 years | 1 | $920 | $1,030 | $3,970 | $4,460 |
| 3 years | 2 | $740 | $820 | $3,180 | $3,570 |
| 4 years | 3 | $590 | $660 | $2,540 | $2,860 |
| 5 years | 4 | $300 | $330 | $1,270 | $1,430 |
| 6 years + | 5 | $150 | $170 | $640 | $720 |
Trailer lease (six-year class life)
| Weekly rent rate (5-day week) |
Monthly rent rate | ||||||
|---|---|---|---|---|---|---|---|
| Age | Dry van | Reefer | Flatbed | Dry van | Reefer | Flatbed | |
| 1 year | - | $230 | $530 | $230 | $1,000 | $2,230 | $1,000 |
| 2 years | 1 | $210 | $480 | $210 | $900 | $2,070 | $900 |
| 3 years | 2 | $150 | $340 | $150 | $630 | $1,450 | $630 |
| 4 years | 3 | $150 | $340 | $150 | $630 | $1,450 | $630 |
| 5 years | 4 | $140 | $310 | $140 | $570 | $1,310 | $570 |
| 6 years | 5 | $130 | $280 | $130 | $510 | $1,180 | $510 |
| 7 years + | 6 | $70 | $140 | $70 | $260 | $590 | $260 |
Tanker trailer lease (six-year class life)
| Weekly rent rate (5-day week) |
Monthly rent rate | ||||||
|---|---|---|---|---|---|---|---|
| Age | Sanitary | Petro | Dry bulk | Sanitary | Petro | Dry bulk | |
| 1 year | - | $340 | $370 | $300 | $1,470 | $1,580 | $1,300 |
| 2 years | 1 | $310 | $330 | $270 | $1,320 | $1,420 | $1,170 |
| 3 years | 2 | $220 | $230 | $190 | $920 | $990 | $820 |
| 4 years | 3 | $220 | $230 | $190 | $920 | $990 | $820 |
| 5 years | 4 | $200 | $210 | $170 | $830 | $890 | $740 |
| 6 years | 5 | $180 | $190 | $150 | $750 | $800 | $670 |
| 7 years + | 6 | $90 | $100 | $80 | $380 | $400 | $340 |
The above rates for tractors and trailers were calculated based on a combination of information obtained by third-party equipment lessors dealing in tractor and trailer leasing throughout the state of Wisconsin. Due to a small market for tanker leasing, rates were determined based on a comparison of cost between new base-model sanitary, petro, and dry bulk tankers versus dry van trailers. Both estimates and assumptions regarding the life and decline in value of the equipment were used in the calculation of the rates; thus, rates may vary in comparison to rates obtained from other third-party lessors. These rates are intended to provide a baseline for calculating the FMV of weekly and monthly lease rates.
How we can help
Every company’s situation and equipment are a little different, so your rent may fluctuate from these rates based on your particular needs. CLA’s transportation and logistics professionals can help you best apply these rates in your business.
Download the Rates