lets talk real info on l/p

So you've dome some homework on the l/p program and during that time you have to had read many hate postings on it,so what makes you wanna try it?

 

Stories are stories ... good and bad. You need to do your on PnL models and make your check list of tangibles and intangibles ... then do your own due diligence directly with the data gathered from the companies ... once you have it narrowed down then you can cross reference here for personal experience ... other than that you're just stabbing in the dark.

 

Here's the thing:

Like most small businesses, new trucking startups flame out at a very high rate. In restaurants, I understand the 5-year success rate of a new business is in the 15-18% range. I personally spent almost 20 years in the IT industry and new tech startups blaze up and flame out even faster than that.

Unlike most other small businesses, it is very easy to get yourself into the solo trucking business. Lots of places are eager to sell you a $10-25k truck if you want to buy something cheap and try your luck with keeping it running long enough to save up enough to purchase something better. Similarly, lots of companies are eager to let you in on the lease-purchase side of things with a new(er) truck.

Because it is so easy to get into the ownership side of this industry there are a correspondingly large number of individuals who have tried it for whatever reason, failed for whatever reason, then for whatever reason believe that things were stacked against them, no one can possibly succeed at it, yada yada yada. Sites like this are filled with those that didn't succeed who then turn around and argue bitterly that you can't make it work, everything is stacked against you, dogs are lying with cats and so on.

In my opinion, the type of person who fails at a lease-purchase program are the same that would likely fail at a tech startup or corner cafe. People don't do their due diligence, don't treat their operation like a business, don't have a for-real business plan, etc. I know this doesn't fit in well with the beliefs of many of those who are sure they were trampled over by some unscrupulous entity or other.

I started a lease-purchase in 2008, finished the lease in 2012 and finished the purchase side in 2013 to get my truck title. I'm writing this in that same truck right now as a matter of fact. My success wasn't an accident -- I predicted my net earnings after all truck expenses for the four years within a few percent of the actual number before I pulled a single load. All of this happened in the midst of the worst recession in the US in our lifetimes.

Unlike the others, I chronicled my experience in the form of a blog with over 1,000 posts and a spreadsheet showing my actual numbers from every week's settlement for the entire duration of the lease. The forum guidelines here prevent me from "advertising" the web link so I'll PM it to you and you're welcome to browse it if you like.

Good luck,

Jim

 

The four biggest challenges you will have are the four over which you have most control: the weight of your right foot; the amount of time you spend on hometime; how much you put away for taxes, Social Security and the like; and how many fancy toys you buy.

Get those under control and you'll be a step ahead of others.

 

One of the biggest myths about leasing ... taxes are essentially a non-issue ... it's very unlikely that one would pay even a 5% effective rate on the net after fixed and operating costs.

 

The one thing you never hear is a driver that says, the lease was alright I did not manage my money correctly.

 

It is not a myth. The tax rate you pay at the end of the tax year isn't the issue. The issue is estimating gross income and making quarterly tax payments. Miss a few of those or make inaccurate estimates and your friends at the IRS and your state tax agencies will be all up in your life; I know from experience.

Having expert, trusted advisors is critical to success in any business.

 

Leases are contracts written by lawyers. They are always going to be written to the writer's benefit and within the law. Reading and understanding the elements of the contract is critical to your success. That's another reason to have experienced, competent advisors.