Best lease purchase opinions

it does say he has 7 years, but i wouldnt suggest a lease ether, But?, If the OP is set on doing a lease, make sure you get all the info you can before you sign, What's the ballon?, Payments amount?, ect, ect, ect, And READ the contrct!, Dont take there word for what it says, Have heard soooo many complaining about some charges they are being charged, Then say?, they didnt tell me about that, But I'll gaurantee it's in the contract

 

It is never a good idea to start any business without some money. If you have been driving for 7 years and don't have a fair amount of money saved, then this may not be the time to start a business. If you had saved $100 each week for those 7 years you would have enough money to pay cash for a truck and have money in your pocket to get a good start. There are a number of companies around that will lease you a truck. I have a friend who has many more years experience than you and he decided that this is something he wanted to do. He pretty much lost everything he had after a medical problem. Things have been difficult for him and he felt that this would be a good way to get back into the game. He was wrong. He hasn't had a paycheck in about a month. He took off a week and got some short runs that didn't pay that much. This next settlement should be decent. Some weeks he does well and others he doesn't. He could make more as a company driver than he is doing in a lease. His is a common story. You get impatient and think that you absolutely must have your own truck right now!! Your credit is trashed and you have not saved any money so you somehow think that if you go deeper into debt that things will be better. It hasn't worked for our government and won't work as individuals.

There are few who really make it as a lease operator. Some lease a truck and never own it, such as with Prime. There are some carriers, such as CRST Malone and Dart who will give you the title once you complete your lease. Most carriers who do lease purchase run Freightliner or Volvo and some may use International. Few will do a lease with Paccar products, such as Peterbilt or Kenworth. There are leasing companies who will lease purchase a truck if you have a decent down payment. If you can lease from an independent leasing company then you can move the truck if things don't work out with your current carrier. If you lease from your carrier and want to leave the company then you lose anything that you will need to leave the truck and will lose anything you have paid on the equipment. Leasing from an independent leasing company will usually result in lower payments that direct with the carrier. My friend pays $600/week for his lease payments. That is a lot of money. He will never own the truck even if he pays all the payments as agreed.

There really are no shortcuts when it comes to becoming an owner operator. To be successful you need to take it one step at a time until you attain your goals. There is nothing wrong with being ambitious or wanting to better oneself. We all strive to do better. But, if you want to really be successful as an owner operator do yourself a favor and take a little longer and put a business plan together. Make a plan to clean up your credit and save your money. Save something out of each check. It will surprise you how quickly your money will grow. You could save enough in a couple of years to pay cash for a decent truck.

 

You will stand a much greater chance of being successful if you saved your money and just bought a truck rather than doing a lease. When you start a business you throw your bread upon the water and hope for the best. There is never gain without risk. The greater the potential gain the greater the risk. When you have your own money at risk you will always push harder in order to make your business a success. You can get into a truck for less than you might realize, even if you finance it. You could buy a truck with as little as $2,000-5,000, depending on the price of the truck and your credit.

 

Yeah I had no idea about that, I figured with my credit and all I'm gonna need like $10-20k down. Even with a $40-50k used truck.

I went to a peterbilt dealer today and that's pretty much what he told me. My credit is around 650. I've been paying on my car for two years without a missed payment. I plan on selling my car if I end up buying a truck though to save money. I use it twice a month and would be better off buying a beater car to use when I'm home.


Also, why wouldn't many companies lease purchase paccar products? I was just wondering. I know a few companies fo the Aero Pete 386 but I wouldn't be interested in anything other than a 389 or w9



Ethan

 

Just because someone has no credit does not mean they mismanaged their finances, actually it can be the contrary. My fiancee has no credit. She owns her home, has no credit cards, has a good paying job and buys most everything with cash. Since she has no credit cards, no store credit accounts, no mortgage payments or loans, she has no credit. Even with a $10k down payment she could not get financed for a $40k vehicle with $97k/year income. It's about as bad as having no credit. So don't jump to conclusions when someone says they have no credit.

With that being said you can go to this thread and see my experience with crst malone L/P. As a synopsis they are flatbed, L/P and O/O only. No qualcom, no elog. No down payment. You find your own loads. You are not financed through CRST but through a finance company. They have a maintenance program. The lease is walk away, at any time you can turn in your keys and walk away (though you still have to pay for your securement equipment if you haven't paid that off). It is no cakewalk. It is work. But your future is in your hands, success or failure is up to you.

Thread http://www.thetruckersreport.com/tr...st/184571-crst-malone-l-p-from-beginning.html

 

The down payment will depend on your credit, experience in the industry and whether you have previously financed a truck among other factors. You can lease purchase a truck from a leasing company such as Lone Mountain with the down payment that I noted in my post. The down payment that I noted would also be for an outright purchase on a truck in the $20-25,000 range. Paccar has a lease program, but I don't know the requirements. There are a couple of reasons why most carriers who do leases don't buy Paccar. Cost is one factor. Paccar products tend to cost more and when you are talking about a 389 Peterbilt or W9 Kenworth they will cost more to operate since the fuel mileage is not as good as with other brands, such as Freightliner, Volvo or International. There are a couple of carriers that lease Paccar, but I don't recall the names.

I have never understood why people will commit to paying up to $800/week for a truck that they may never actually own, when they could save their money and with a good down payment finance a truck with a monthly payment of less than $1,000. Starting out many inexperienced drivers buy more truck than they can afford. That is one thing that gets them into trouble when business slows. Whatever your payment, you will be obligated to make those payments regardless of what is going on with the economy. If you like Paccar, I have seen older 379 units for $25,000. Financing can be more challenging with older trucks. Lenders prefer financing newer equipment. With a 650 credit score I would say that you are marginal as far as being able to find traditional financing. You will need a good down payment. You should expect to need a down payment of about 10-30% of the purchase price when buying outright. Leasing from a carrier may sound like a good idea, but you won't make more than if you stayed a company driver by the time you pay everything. At one time I leased trucks to Malone. I checked on their lease purchase program when I was considering adding more trucks. If I were to look at leasing a truck from a carrier I would check with them. It seems to be more equitable than many others that I have checked. I have never lease purchased a truck. I never saw the advantage of doing a lease purchase over being a company driver. I have either paid cash or financed through traditional lending institutions. I have owned trucks for many years. If you are disciplined you can save and pay cash for your truck. That is what I did. I saved and paid cash for my first truck and trailer. It can be done. You will need to make a strong commitment to your dream. Paying cash will take the pressure off of having to run to make your payments. Your credit will not be a factor when paying cash. It is a great feeling to actually own the equipment you are driving. When you lease a truck from a carrier you are limited as to the type of truck you can rent. That is all a walk away lease is. It is renting a truck to make a living. There is a poster that is doing a lease purchase with Swift. I believe she stated that she clears about $900/week after everything is paid. She is happy with her deal. You can earn as much being a company driver.

Swift, Covenant, Schneider, US Xpress, Dart, CRST Malone and Prime are a few who will do a lease purchase. I think that Prime only leases their trucks. I don't believe you can actually own their trucks. Frankly, I think that leasing a truck from a carrier is a bad business decision. But, if you are determined to move forward with a lease purchase, then you have a few names where you can start.

 

Thank you so much for the info. I have been looking for the answer I need to make up my mind and yours was spot on.

When I went to the Pete dealer I asked about paclease program and was told you have to be in business for 5+ years before you can even apply.

But for my first truck I'm leaning more toward a freightshaker with a Detroit for the fact if being cheaper to operate and maintain plus availability of parts.

Ethan

 

You are very welcome.

I wasn't sure about their requirements. That is good to know. I checked into Paclease several years ago and felt the interest rates were higher than I could get elsewhere. Still, it is another option if you meet the minimum requirements.

I think that is a very wise decision. What you drive is less important than making your business successful. Once you start making money you can put revenue aside and buy the truck you want later. If you work your business right you could work your way up to a paid for new truck. I have known people who bought a truck and traded every couple of years until they had the truck that they wanted.

 

I'm willing to admit my biggest problem, or problems are-

My Ego, lack of patience, and just plain old stubbornness

My dad tells me I'm just like him when that last problem shows haha

I've always seen a truck as one with a "Hood". I'm slowly opening my eyes to what i Need rather than what i want. I want a new truck with a Pre-Emissions engine, but I need something decent on fuel and low on price that will get my business off the ground and moving. The biggest problem I face with my ego is I'm insecure about having any truck other than a "hood" because I personally don't like them.

My impatience comes in because I want the truck of my dreams rather than going through one or two other trucks, and saving money, before buying my "Hood".


I'm just very stubborn haha, I am leaning toward compromising for a hood/aero truck.

 

I have gotten some really good deals on equipment by being patient. I NEVER get in a hurry when I am looking for equipment. When you do get in a hurry you can over look things that can cost you money such as paying too much for your equipment or not see problems. I have interviewed many drivers who were once owner operators. They bought more truck than they could afford and lost their shirt. Most bought hoods. They let their wants overcome their needs. There is nothing wrong with a Freightliner. They have pulled many millions of tons of freight for some of the largest fleets in the nation. It has been proven to be reliable and fairly economical to operate. They can be purchased for much less than the hoods and make as much or more money.