The Perfect Lease Purchase Contract!

dgarricksr · Dec 16, 2013

And i'm just curious as well. i'm currently a dedicated driver home nightly. Have always wanted to own my own truck and drove otr a few years before going local. Never found a deal that looked good on paper. Asking more for advice then trying to say this is a good deal as I'm not sure it is and if anyone knows better or has more accurate information i'm all ears.

SheepDog · Dec 16, 2013

dgarricksr said: ↑

Ok what details are you looking for? payment is 979 which includes physical damage and apu. the rest comes out to about 1,250 a week ie QUALCOMM permits plates insurance. 100% fsc. 70% of load revenue. average revenue is 4,500 a week. fleet mpg is about 7.5 and some are averaging almost 8.
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Do yo see the #1, #2 & #3 post above? See how they are laid out in "detail"? Thanks for reminding me, I forgot to put my revenue in my example.

SheepDog · Dec 16, 2013

In my example post the revenue is 75% or better, company gets rest for authority, and whatever... This amount should be associated with what the company does for you. Don't forget, in a L/P deal, you get paid every week. In a real O/O situation, you get paid when the broker/customer pays you, between 30/45 days. Company should cover cargo Ins. as well.

popcorn169 · Dec 16, 2013

You have started a very interesting thread. I enjoy reading well informed threads about lease's but it always turns to a pizzing contest with some of the people. I like the info about l/p you get paid every week compared to o/o who get paid when broker decides. Also about the details and what they entail. I myself have been tossing it around in my mind for about a year and I am leaning towards JCT if I ever decide. Keep up the great info.

SheepDog · Dec 16, 2013

If I was a MOD, I would delete anything that is not within the parameters of this thread, like pizzing match's...lol

Thanks again popcorn and if you can get the details on JCT's L/P, feel free to post it here. I am not the one that is going to tell you whether you should or should not do it, I just want everyone to be able to come here and see the differences, before they call the company they are thinking about.

popcorn169 · Dec 16, 2013

By pizzing match I mean people getting on here saying it is a bad don't do it cause I said so. I hope you did not take that part the wrong way.

As for the JCT lease it is

.90 cents per mile, all dispatched miles
.02 cents per mile safety bonus, paid quarterly
Paid base plates and permits
Road use and fuel taxes paid
EZ Pass, Pike Pass and Pre-Pass
Toll and scale reimbursement
Nationwide discount fuel network
Fuel Surcharge updated weekly based on DOE national average
Large fleet buying power
at end of lease it is a 1 dollar buy out.

Have talked to several of their drivers and they love it.

SheepDog said: ↑

If I was a MOD, I would delete anything that is not within the parameters of this thread, like pizzing match's...lo

Thanks again popcorn and if you can get the details on JCT's L/P, feel free to post it here. I am not the one that is going to tell you whether you should or should not do it, I just want everyone to be able to come here and see the differences, before they call the company they are thinking about.
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popcorn169 · Dec 16, 2013

Also a large portion is drop and hook and length of haul is over 1000 miles a lot of times.

MysticHZ · Dec 16, 2013

bigdad7 said: ↑

I didnt say dont do it i just said a program where someoneelse is responsible for the maint is bad juju ....and i am doing a lease purchase but if your going to take the risk you need to be able to manage it never would i want to pay a fleet to manage maint......
Your question is valid what is an optimal Situation it is one where you have control over revenue and manage the equip.....and imo anything less than 10k a month after fuel makes it not worth the risk....1300 a week not even close because where are you left when you have a performance issue that is costing you fuel but they wont fix it because it still runs your 1300 just became 800 thats bad juju
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This ... your biggest expense is fuel ... the secret to saving fuel, is a well maintained truck ... the secret to a well maintained truck, is a shop you can trust.

This means you have to have complete control over who works on your truck, when and where. And you have to have complete control and access to any maintenance funds.

SheepDog · Dec 17, 2013

Trust me, I know that fuel is the biggest expense and, just a mile per gallon could save you 12,000 a year in fuel. So yeah, fuel is important,,,but again, we are talking about The Perfect Lease Purchase program.... I have never heard of a L/P program that allows you to be 100% responsible for the trucks maintenance. Hey, if it is out there than post the details on this thread, please. The only way a L/P operator can control fuel costs is "speed" and where they buy fuel.

pattyj · Dec 17, 2013

Ive never leased but whats a baloon that you mentioned?What program are they talking about to make better decisions for the driver?Are you forced to take the program and for what price?Are they going to casterate your trk like they do company trks?What is the companies deffination of small improvements?How much of a discount are they talken on tires parts ect?So if you see a load on the load board,do you make the call whether you should accept it or not?or do you have to go thru your company first?

SheepDog said: ↑

I tried to start this in another thread but, it didn't take off. I think because it was in an already established thread.

So here it goes,
I would like to hear everyone's opinion about this. We all know that "no lease purchase is good", or "don't do it, you will fail" but, that is just too vague and as long as there are companies that offer this type of deal, there are going to be drivers that take it. I have been reading over all the threads regarding lease purchase and I just haven't found what I am shooting for. Sure, there are bits and pieces everywhere but, let's try this and see if it is more to the liking. I would like all those that make the above comments, to just give solid advice on what THEY believe would make them say; "okay, if it was set up this way, I would consider it".

I am looking for options like, down payment or no down payment. Balloon or no balloon, and how much for both. Dispatch, load board or both.

Here is my example;
1. Trucks in the 2006-2010 age range with no more than 550,000 miles.
2. A maintenance program that covers the truck bumper to bumper, for the 1st part of the lease.
3. A small down payment, say around $2500 or less
4. A small balloon, or no balloon. If a balloon than it can be financed until paid off.
5. No Forced Dispatch
6. No Forced Routeing
7. A fuel card
8. Program to HELP driver make BETTER decisions
9. Program to Help driver with paperwork, like ATBS
10. Maybe a program, or a discount on a program, that helps the driver transition to an O/O
11. Allow the driver to put in, or have put in, an inverter.
12. Allow a driver to make changes to the truck, to improve fuel mileage,,,small improvements of course, nothing that will void the warranty.
13. More than one avenue to get loads, like a load board and dispatcher.
14. A walk-away lease
15. Help with plates, Ins., IFTA, Permits and so on..
16. Discount on tires, fuel and overall parts.
17. A lease term no more than 3 years but, 2 would be better.

Wrap all this around a company that actually has some Integrity and sounds pretty good to me. Of course there is some tweaking but, this is my idea.

Let's make this educational for the driver that doesn't listen to nay sayers, and is going to do it because he/she chooses to.

Thanks..
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