Lease Purchase - good deal or not?

Discussion in 'Ask An Owner Operator' started by RedBeard, Sep 1, 2007.

  1. RedBeard

    RedBeard Medium Load Member

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    Jan 12, 2006
    Marianna, FL
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    The company I drive for has just started a lease purchase program. Here's the details as I have them so far:

    Truck: 2004 Freightliner Columbia mid-roof or International 9400i mid-roof with 435hp Detroit (FL) or 435hp Cummins ISX (Int) engine, straight-10 Eaton-Fuller trans, 2.79 (FL) or 2.64 (Int) rear. 380k-420k miles. The gear ratio on the Internationals is such that they turn about 1500rpm at 65mph, probably a touch higher RPM on the Freightliners.

    They install new starter, alternator, batteries, mattress, virgin tires, brakes, and change all fluids and filters, turn the trucks up to 70mph, then sell them to the finance company.

    Down payment of $3750, weekly fixed expenses are a little over $400. Driver gets the code to turn the truck up or down as far as he wants, set the jakes to work in all gears if wanted, etc. The lease term is 30 months, with a $6000 buy-out at the end.

    Pay is $0.90/mile loaded and empty, plus fuel surcharge (currently $0.25/mile).

    I currently average about 2700 miles a week as a company driver, and make $0.36/mile.

    Does the lease purchase program make sense to you guys?
     
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  3. javelinjeff

    javelinjeff Medium Load Member

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    Aug 30, 2007
    victorville,ca
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    my truck costs me about 74 CPM to operate & own. this includes payments,fuel,insurance,reg & permits,taxes(fuel),2290,basic maintenance,etc. since i have my own authority i also included the cargo and non-owned trailer ins as well. this is on a 40k truck.some of those leases include plates,cargo ins,permits & fuel taxes.the income is not all that much higher than co. drivers but a good accountant can do wonders with your tax write-offs.your profits begin when your payments end-the basic rule in buying trucks.expect co. driver incomes untill it is paid for!
     
  4. Roadmedic

    Roadmedic Road Train Member

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    Apr 4, 2007
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    .74 operating cost does not leave much for the driver wages.
     
  5. octruck

    octruck Bobtail Member

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    Sep 1, 2007
    atlantic city, nj
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    Which company? I'm looking for a program which has Internationals.
     
  6. javelinjeff

    javelinjeff Medium Load Member

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    Aug 30, 2007
    victorville,ca
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    that was based on approx 2500 miles per week average,thats why that $1.15 per mile just ain't enough!! i average about $1.24 a mile on my contract as a sub-hauler and trust me-it ain't enough!!
     
  7. RedBeard

    RedBeard Medium Load Member

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    Jan 12, 2006
    Marianna, FL
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    It's USA Truck. I don't think I'm going to go with it, at the very least for quite a while. I'd like to get the last of my debt paid off and some money saved up for a rainy day before I try the owner-operator route.

    Besides, I just finished the training to become a trainer, which should net me quite a bit more than I'm making now, and probably more than I could hope to make as a lease-purchase driver. Yes, I am aware that I've only been driving for a year and a half. Yes, I'd be far more comfortable with training new drivers if I had a few more years behind the wheel. That being said, I could really use the money, and I think (and hope!) that I can do an acceptable job of turning out safe, professional drivers. In any case, I'm going to do exactly what anybody in any job should do - the best job I can!
     
  8. octruck

    octruck Bobtail Member

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    Sep 1, 2007
    atlantic city, nj
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  9. buck and a half

    buck and a half Mr. Miles & Miles with Many Smiles

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    Aug 11, 2006
    madison,me
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    Too many risks to try that. You be a trainer [if you can stand it],I trained raw recruits straight from ireland years ago.I too ,like the freedom too much to share my life and cab with anyone but my wife or family. I have friends that are struggling to make it at 1.32 a mile and their plates are paid for,too many expenses pop up,then you must pay the irs.,and ssi if you want to stay out of trouble.Much better off getting paid as a company driver,on payday,you get to keep it all. Good luck.
     
  10. RedBeard

    RedBeard Medium Load Member

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    Jan 12, 2006
    Marianna, FL
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    That's correct. The requirements are 1 year total OTR experience and 6 months with USA Truck as a company driver.
     
  11. dbreed

    dbreed Bobtail Member

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    Apr 2, 2007
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    Lease/Purchase is a suckers deal.
    The worst is an L/P form the lease carrier.

    Have you ever heard of pimps and ######?
     
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