Is lease/purchase ever a good idea?

What are the payments, weekly expenses, and terms of contract? Is it a purchase at the end?

 

I was in a walk away lease and recently walked away in order to pursue another business venture with one of my kids. I enjoyed it and made decent money with semblance of independence, although not entirely. I had no interest in owning the truck, thus the lease arrangement fit me well. After all expenses except personal income taxes, it was easy to clear 100k a year.

 

You are gonna get a lot of people slamming "Fleece Purchase", but I am in one and I would advise EXTREME caution. At least 5 years OTR practicing; running the truck as if you were paying for everything and keeping a ton of records so you learn about what makes for profit and loss (think FUEL, FUEL and FUEL); fixed and variable expenses, taxes, buying your own healthcare insurance (you foot the whole bill for the premium - there is no "employer contribution" plus the insurance, lease payments and to really get discouraging: You pay to take time at home. By that I mean you still got bills to pay for the truck, but you are home not making any money to pay them so you may very well wind up in the hole for the week and that money in the hole comes off the top of your next settlement; So you gotta save up for hometime. Plus; just to totally kill the joy, this ain't no home often gig. To make it you got to roll every hour you got, and stay out there shakin' the freight long as you can stand it and have a stash for the negative settlement to go home. WHY would anyone want to do this? That person need's counseling!!

I wouldn't trade it for all the tea in China!! I love it!! I am a true Independent Contractor; President/CEO/CFO/Treasurer/ Chief Cook and Bottle Washer/ Light Bulb Changer/ Janitor and Driver for my Company: Consolidated Motor Carrier Services, LLC. Make it or break it; it's ALL on ME and I get to do it MY way and the feeling of independence, freedom is EXACTLY what our forefathers had in mind when they risked THEIR entire lives and fortunes on this Great American Experiment and decided to take on the mightiest Army and Armada in the known WORLD! Wanna talk about Crazy Dreamers!!!

It's a LOT more work and you only make a little more money at first and you MUST have a lot more discipline than most and you have to stay out a lot longer than a company driver does to do it. Every decision is risk/reward/ go - no go. It's life like no other. I love it. The feeling is unsurpassed.

I do recommend at least 5 years practice as company driver; pretending like the money comes out your pockets and test what works and doesn't. That way when you make the inevitable mistakes, the money doesn't come outta your own pocket AND you get time to research the GOOD, BAD and UUUUGGLLLEEEE of the whole lease/ lease purchase crowd. THEN make the leap if it so suits you. First year is too soon IMO. THEN you have to go with a quality outfit - or you'll still wind up tits up.

Hang on to your Dream and practice first. You got this Driver. You just have to practice first before you make the leap. Once you do (if you do - it really ISN'T for everyone); You'll be as prepared as you can be and the feeling will be quite similar to a Father's feeling of pride and joy when his children are born and he actually gets to be there in the delivery room and help catch them. Of course the OMG, I have a HUGE responsibility here! Um, but (smile), yeah (fear) . . . ALL of it. It's like being a new Dad all over again. People gonna say Aminal is nuts; but it's true. Launching a BUISNESS is VERY much like having a Baby and make NO MISTAKE: Becoming an Independent of ANY type - is Launching a Business. You JUST went into business for yourself . . . you get all the good and bad that goes with being an Independent Business Owner.

Absolutely nothing in all the green grass of Home wrong with being a company driver, but in 17 years chewing asphalt and concrete I feel like I never truly LIVED the dream til I did it. Now, it's choreographed CHAOS for sure, but I love it; cause I'M the Choreographer. Oh course . . . . if the Show's a BUST . . . that's on . . . ME; Not the dancers: I chose them!! Feel me? This is TOTALLY an: It's ALL on YOUR shoulders deal. Lot to be said for staying a Company Driver. Food for thought. That's all.

Best of luck there Hand and don't mind the naysayers. A moment of pause if it's relevant, but mostly you can glean the ones that set themselves up for failure.

Be Safe WHICHEVER road you choose to travel.

 

Could not say it better than the previous two posters.

It does work for the right person with a good understanding and correct mindset / attitude.

 

Ya it can work? But do the math, weekly pay times number of years paying, plus ballon at the end, year of truck, and what the actual cost if purchased from a dealer, most lease deals, your paying waaaay more than the truck is worth, still better to buy from a dealer

 

Only lease onto a company that lets you pick your freight off a load board. Think Landstar or Schneider. Your success should depend on you and your planning, NOT on a company planner and dispatcher who aren't responsible for the financial obligations you are. If you are going to do it, do it all!

 

DO ZA MAATH . . . View attachment 79194 WVEEHERE IZ YU MIZZIN' DOLLA ?


View attachment 79202 ZAAAYY GOOOOTT IIITT!! UND ZEN SUUM!!


ZATTS OOKKAAY! OPRAH GOTZ YU BAAK!! View attachment 79205

SOOOO . . . DANZ . . . O NO DANZ??

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Up tooo . . .YOUUUU ! ! !

Just don't be THIS guy!

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You can do ALL the math you want; you MUST do the MATH!!

NEVER FORGETHE DANCE, THOUGH > > > It's why you cam in the FIRST place;


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Isn't it ? ? ?

 

It depends on what you want to accomplish. Some people never want "truck ownership". Much like some people (especially those in business) prefer to lease a vehicle and get the entire tax advantage that you do not get by purchasing the vehicle.

It all depends on what your individual goals are and which business model you choose to use. Both methods are very good for trucking, just like the difference between flavors of ice cream, everyone has their individual flavor but that doesn't mean that everyone else should like the same.

I completed a walk away lease and I am now in the process of signing the paperwork on buying a used truck to sign on with Landstar. The former prepared me for the latter in a very good way.

 

Two web sources that really explain several of the differences. Again I am not picking a side - just think everyone needs to realize that each has its own individual positives and negatives.

http://smallbusiness.chron.com/better-lease-buy-truck-business-taxes-4151.html

http://www.pensketruckleasing.com/faqs/lease-or-own-fleet.html