Purchasing your lease truck...

Discussion in 'Swift' started by Lady K, Apr 20, 2014.

  1. Lady K

    Lady K Road Train Member

    Question... Has any one here purchased their leased truck? Who did you go through for financing? If an outside bank, did you have any difficulties with the title?

    We started out with Hubby's name on the lease. Which was fine because we were doing it as sole proprietor. Then trying to get healthcare we decided the best thing for us was to form an LLC. Went to put the name of the LLC on the lease, but would have had to sign a new contract. By this time a new pay plan was in place and would have meant a pay cut, so we kept Hubby's name on the lease.

    Now we are in the process to purchase our truck. Well our LLC is... However the name of our LLC isn't on the contract. Also the contract has Central Ref. on it, not Swift or the name of the company that now carries our lease IEL. (Which we found out leases our truck from Daimler... So we 'sub-lease').. What a tangled web!!

    So how easy/hard was it for you? Did you finance through IEL to purchase your truck, or an independent source? Did you have any problems with the title? How long did the process take?

    Thanks in advance for any info...
     
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  3. s4l

    s4l Bobtail Member

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    Jan 13, 2014
    Fort Worth, TX
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    Subbed! I'm curious to see how this works out!
     
  4. Lady K

    Lady K Road Train Member

    LOL... So are we :D
     
  5. VaGump

    VaGump Light Load Member

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    Nov 13, 2013
    pennsylvania
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    Hi. I lease my truck through swift. Since IEL/swift now has your contract (which is of course still valid and legal) you can call them at the swift headquarters in phoenix. IEL is just a third party shell company founded by swift for tax reasons and 'third party' leasing. It has five employees and they are in an office on the swift yard. Swifts hqs is very very nice. Look at your contract, it should have the residual payoff amount listed somewhere in it. You can call IEL and find out if they finance the residual. If not, gather all your profit and loss statements from accoutant, all loaded, mt, miles since had the truck, all maintenance records, everything you have to show what cost of operation is versus income to show the bank, plus all your personal expenses, bills, other debt,, for debt to income ratio. Then take to bank and start loan application. I would suggest financing about 8-10 grand more than what you need for residual payoff. They pay off Daimler and now own the truck while you pay it back,,,,, thing is, if the trucktook a major crap on you, drive shaft, etc....while still under central/swift, iel can work with you financially to get through it. The bank......not so much. So unless you got the cheddar already set aside, you will want reserve money to get fixed quick and back rolling in case truck takes a header. In my opinion, since you are now operoperating under swifts authority anyways, if you renew contract or buy it out, you might want to consider pulling for swift instead of central. Lighter freight...better mpg, and access to way more loads than what centralcan give. Hope this helps.
     
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  6. SteveH85396

    SteveH85396 Road Train Member

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    Apr 1, 2011
    Waddell, AZ
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    Swift/IEL will not finance the buyout.
     
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  7. inkeper

    inkeper Road Train Member

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    Texas
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    Injun just finished signing her buyout contract through Swift. She will own the truck outright at end of the term, plus, is getting an additional 250 K mile warranty through Swift. The only condition was that she had to take the truck to Phoenix for a mechanical inspection to qualify for the extended coverage. She claims that several of the L/O within her division are buying their trucks the same way. Others have simply traded their leased rigs in for a newer lease truck.
     
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  8. blsqueak

    blsqueak Road Train Member

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    Dec 27, 2009
    buckeye lake, oh
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    I remember when I signed my contract, I was told that Swift/IEL themselves will not finance the buyout, but that they would do everything that they could to get me financing at the end. Still at the end, trade it in for newer. Then again, as fast as stuff changes, who knows today what tomorrow will bring
     
  9. MysticHZ

    MysticHZ Road Train Member

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    Apples and oranges ... IEL will not finance an early buyout of the lease contract, though you are free to do so through your own financing ... IEL will finance an end of lease purchase on the residual.

    And I'm really not so sure that it is really IEL financing. I know when I was in discussion about purchasing my truck Navistar had their fingers in it. I suspect that, like the lease, IEL is the agent with Navistar - or Daimler or PACCAR - and they are purchasing the truck and passing it through.
     
  10. Klingon

    Klingon Heavy Load Member

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    Nov 30, 2010
    Sacramento, CA
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    Central didn't have a value in the contract, just "fair market value" .

    Financing wasnt a problem.
    After we FINALLY got some one to call us back from IEL the paper went through and got approved in two days.
    Now the bank is has concerns on how the Truck's Title is going to be.
    That why we are looking for some else that has leased and then financed the lease buy out out side of IEL. We want to see how their title is set up.
     
  11. Klingon

    Klingon Heavy Load Member

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    Nov 30, 2010
    Sacramento, CA
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    IEL told me they would.
     
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