The key words here are "Due Diligence". Make sure you understand each and every word of the contract before you sign on the dotted line for a lease purchase and make sure the company you are gonna be in bed with for the next 4 or 5 years is a company that will still be in business and genuinely looks out for its drivers. If you have your house and finances in order then a lease purchase might be successful. I say might because they usually fail from being associated with a crappy company. Those that succeed are usually with companies that have a good name in the business. Positive things about a lease purchase: Walk away lease, if the economy goes belly up you can give the truck back. Injuries, if you get injured and can no longer drive a truck or will be out of the truck for an extended period of time you can give the truck back. You change vocations and no longer can stand to be a truck driver you can give the truck back. None of this will hurt your credit. Negative things about a lease purchase: You can't take the truck with you to another company if you decide to leave (unless you can pay off the truck or finance it out), If the company goes belly up you will probably lose your equity in the truck (unless you can pay off the truck or finance it out). I look at a lease purchase as sort of like an insurance policy. If something catastrophic happens you are going to lose that truck; if its under a lease purchase you can walk away and it won't damage your credit, if you have it financed thru some institution they don't care about your situation and just want their money or truck and if the truck goes back you take a pretty huge credit hit. Just my 2 cents and I'm sure others might have a different opinion.
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Discussion in 'Lease Purchase Trucking Forum' started by NJtoNCtoPA, Oct 27, 2014.
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BoutMyMoney86 Thanks this.
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Last edited: Oct 30, 2014
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Can it be done? Yes. I did it.
Was it easy? No way. Everything is stacked against you. Fees, company store syndrome, high payments, paper thin margins... need I go on?
It sounds as though your hubby is going to do this despite anything we experienced folks say. So how about instead of positive feedback you get some sound advice?
Take a crash course in the financials of running a truck. Fuel, repairs, downtime, break even miles, ROI, gross and net profit, CPM to operate, transportation per diem taxation rules, lease write off allowances, self employment taxes, locating a transportation savvy accountant, etc. Get smart quick. Your family will be depending on it.
But I did it, you say? Yep. I did. I was also a small business financial planner for a Fortune 50 company prior to becoming a lease operator. I kept my books with an iron fist and beat on my leasing company for six months over $2. Oh yes, I did. Every thin nickel counted. As the ten of the twelve other drivers who leased at the same time we did learned within the year - when they had to turn in their leased trucks for lack of income.
Look, I wish you well. But people aren't blowing smoke when they say there are better ways to becoming an O/O. We're trying to help. Save some money, buy a used truck at 1/3 the payment. The margins will be all but assured at that point, depreciation will work in your favor and you might not be spending 15% of your fiscal year in the shop for EGR issues. And you might not get tangled in the class action lawsuits that are being filed against carriers because of the illegality of certain clauses in the leasing contracts as they stand.
I sincerely hope it works out for you, I really do. Seriously. Get smart on it before you crank that engine for the first time. Thats the best advice I can give you.
My positive feedback about my experience? We bailed before we lost the house, but not before a 300,000 mile inframe sucked 40k out of my bank account.
God bless.lcfd15 and blairandgretchen Thank this. -
Last edited by a moderator: Oct 30, 2014
blairandgretchen Thanks this. -
OP still only has the one post. I don't think she's reading the feedback she asked for. Pity.
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you gotta start a new thread after you sign the lease and keep us updated .
i followed some who are positive and anti dissenters and after a while they disappear.
i have found jarheads schneider choice thread very interesting.
i have to search schneider choice on the lease forum to get it -
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