Canadian lease purchase. what do you think about this one?

https://www.youtube.com/channel/UCFccdyzvTB3CU5UxR2a73Rw BigRigTalk, on that page there are like three videos without searching on the lease.
https://www.youtube.com/channel/UCXmJuS8GhVBFkq51ppCTt3g Molly and Me.
Good Luck

 

Let me throw some numbers at you. First, let us look at the costs you have given us. Your miles will vary from week to week, but i would say that 2,500 miles per week is a fair average for the year. You stated you will pay a lease payment of $0.25/mile and $0.05/mile for maintenance. That is $0.30/mile that comes right off the top. Assuming the $2,500/miles wk, you will pay your company (2,500 x $0.30/mi = $750/wk average) just for the truck payment and maintenance contribution. I don't know the type of truck or estimated fuel mileage, but I will give you the benefit of a doubt and use 6 mpg as the basis for my estimate. I usually use 5 mpg for my own calculations. Fuel is down below $4/gallon in most areas of the U.S. I don't know how much fuel is running in Canada. Fuel should cost you ($4/gallon /6 mpg = $0.67/mile for fuel). Add the fuel to your truck costs and your basic costs will run ($0.67 + $0.30 = $0.97 mile). So, let's see where we are now, using your revenue numbers. $1.02 + $0.35 (fsc) = $1.37 gross revenue. I did not consider your costs of deadheading. I would expect about 10% deadhead miles or more. OK, taking just the basic costs to run the truck ($1.35 - 0.97 = $0.38/mile gross profit. But, we are not through with the costs. Your fsc will vary from week to week, so it is difficult to country on something that is so variable. In addition to the costs listed, you will need to pay for PM's (Expect about $300-350). I change my oil every 15,000 miles. Some don't change until they have passed the 25,000 mile mark. I figure about $0.025/mile for pm's. I count on tires costing about $0.05/mile. Unless your carrier pays for base plates and permits, you will need to add those costs, as well. And, don't forget about insurance and taxes. Those are also costs. Just adding the cost for pm's and tires, your costs to this point is ($0.97 + 0.075 = $1.05 cost (rounded up) Taking your gross revenue and deducting the costs so far, ($1.37 - 1.05 = $0.32/mile). I don't know what you will need to spend on insurance, but in the U.S., lease operators and owner operators need to pay for workers comp or an occupational accident policy. The OOC policy should run about $150/month ($0.015/mi). I have been paying about $2,200 for my base plates ($0.022/mi) . Then there is collision insurance on the truck unless that cost is included in your lease payment. In the U.S., collision is based upon the value of the equipment. The rate usually runs from 2 1/2-5% of the stated value. Most seem to average around 3 1/2-4%.

When you consider the costs, it may be difficult to get by on what you will be making. If it were me, I could make more driving a company truck than doing this lease. If it were me, I would save my money until I had a good down payment or could afford to pay cash. Then find a carrier that will pay you enough to run your business. With these costs and the revenue you mentioned, you will do good to break even and that is before paying yourself. Unless you can make more leasing or owning the truck than you can driving a company truck, you would be much better off with the company job.

 

You'll basically be earning company driver wages and trying to save up $70,000 in 3 years. Read your contract very carefully. There may be a stipulation that if you don't have the cash at the time to buy out the residual, the company may take the truck back in which case you ran your butt off for 3 years for company driver pay and probably no benefits that most company drivers enjoy. A worse case scenario would be the truck broke down a lot during that 3 years and you made even less than your contemporaries dues to paying so many repairs.