I would like to know if someone could weigh in with their opinion here:
A friend of a friend of mine has a smallish logistics company. He has OOs working for him, as well as a pretty interesting lease deal. He has 2011 (and some 2012s - I think) International ProStars and 387 Peterbilts with anywhere between 400-500,000 miles. His lease agreement is $0 down, payments of $350 for 36-48 months. I'm not yet sure what the determining factor is regarding number of months. At the end of the term you pay $1 and receive the title. He keeps the trucks moving and drivers get a percentage of the loads. He pays a fuel surcharge, I don't know any of the rest of the info yet, which is why I'm asking here. Any thoughts on any of this?
Individual lease with a small independent company
Discussion in 'Ask An Owner Operator' started by tbrown_sd, Oct 9, 2015.
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$350 a month? Or a week?
That's only $16,800 in 48 months at $350/mo.
If that's a week it's $67,200......more like it.
The other info is very vague as well. What are his average #s to the L/O ? -
If the prostars have maxxforce engines, don't do it. They are junk. The Petes might work but be sure to have everything on paper and run it past your accountant and lawyer before you sign anything. Sit down with the guy and some of his drivers to get an honest feel for the operation, and then trust your instincts. I certainly think it sounds doable if you are willing to give it the requisite time and effort. Good luck with your quest, sir.
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A lease is a lease is a lease. Been written about on the internet for 20 years now.
You want us to talk you into it or out of it? I'll do either since your (don't take it personal, I don't know you) success or failure sincerely disinterests me.
However I do derive some sick sort of pleasure seeing failure of others. Makes me think I'm better than I really am.Cottonmouth85 Thanks this. -
For $350/month you could just park that thing and live in it. Try finding an apartment for that kind of money.
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I disagree with the other poster that a lease is a lease is a lease. This sounds nothing like what I hear about from the big companies. No balloon payment and hanging a driver out to dry. -
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I have personally had very good experience with Cummins. If they have had good maintenance you should be okay, but also be aware that as miles add up there will be more fixing. The way you drive will also affect your costs. As I said before, if you are comfortable with it, have a realistic idea of what you plan to accomplish (not just dollar signs), go for it.
tbrown_sd Thanks this. -
I think the key question is, what kind of freight does he have to haul? If it's only broker loads off the load boards , it will be tough in the current market.
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sounds halfway decent, now is that 350/wk ? does that include tags/permits/ift/etc?
tbrown_sd Thanks this.
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