I know what you all say about LP programs, but...

Discussion in 'Ask An Owner Operator' started by Eskimo6804, Jun 2, 2008.

  1. Eskimo6804

    Eskimo6804 Heavy Load Member

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    I know what the consensus is amongst most of the veteran members of this forum in regards to Lease Purchase programs. You all say not to lease a truck from the person who tenders you your loads. What would you think of a lease purchase in which the leasing company has no ties to the carrier?

    I am considering starting a leasing company to lease my used trucks since the trade in market is so depressed. It would be small down payment and no credit check. You could lease it to any carrier you wish as long as the carrier agrees to withhold my lease payment and maintenance escrow through payroll deduction and the carrier must pay me(the leasing company). I wouldn't be doing this as a profit center but rather a way to hedge against the low trade in prices that I am taking a bath on now.

    A vague example of the numbers are as follows; 2006 KW T600, 86 inch studio sleeper with o/o specs and between 300,000-400,000 miles. Payments of $1650 per month for 36 months and a $1 buyout at the end of the lease. $.07 per mile into a maintenance/tire escrow(100% refundable).

    This is VERY much only in the preliminary stages and I'm looking for your general thoughts about it.
     
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  3. MedicineMan

    MedicineMan Road Train Member

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    We leased quite a few trucks. probably half of them were leased. Never had to have payments withheld though. Would a company even do that?
     
  4. Eskimo6804

    Eskimo6804 Heavy Load Member

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    First off, the reason for that requirement is that it allows me to offer the lease to just about anyone without regard to their credit.(kind of a CYA for me) Yes, I have talked to five companies(2 small companies, 2 medium sized companies, and one very large company) and four out of the five said yes, that would not be a problem.(by the way, the one that said no was a small company)
     
  5. Working Class Patriot

    Working Class Patriot Road Train Member

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    Third party leasing is probably the best way to lease equipment. You benefit as the lessor and the lessee benefits from not having to lease on with a a carrier who would restrict the manner of their operations. I see a win-win situation.:thumbleft:
     
  6. MedicineMan

    MedicineMan Road Train Member

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    ya I know the reason. just didn't know if companies would do it. I can se the small companies having an issue before the big ones. I think it would work.
     
  7. Eskimo6804

    Eskimo6804 Heavy Load Member

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    Thats the way I see it too, but my opinion is obviously biased as I am an involved party. The thing that I have to do, I think, is educate the lessor as best I can so that I can be sure that they will make money and thus be able to make the payments. The one thing I don't want to get into is the truck Repo. business. I just want to move my used trucks at an equitable price. I am not so naive to think that I would never have to repo a truck, but the less I have to do that, the better off I will be.
     
  8. MedicineMan

    MedicineMan Road Train Member

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    I'll repo for ya. wouldn't be the first time someones taken pot shots at me
     
  9. Working Class Patriot

    Working Class Patriot Road Train Member

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    There you go MM.
    Put a hook and a winch on your rig and you're in:biggrin_25523:
     
  10. MedicineMan

    MedicineMan Road Train Member

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    Nah, that takes too long. just polish up on the ol lockpick skills :biggrin_25524:
     
  11. Eskimo6804

    Eskimo6804 Heavy Load Member

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    Hey Ron, what kind of wagon are you pulling now? Just wondering how the rates are looking on outbounds from SoCal for you.
     
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