Lease purchase for a very small company

Do the math. Run the company truck for a month,just like you are leasing. See if it's worth it.
Make sure you have a good amount set aside for when the truck breaks down.
I dropped 7k last week for parts to do a inframe. I do my own work,otherwise your looking at another 3500-4000 in labor,and that's not dealer rates. Dealer your looking 5k plus.

 

You'll make money . Don't go with those pct companies . Like SNI. Or LS. Those guys will lie about their rates without posting dead head or quarterly averages or post random quotes where they got 70 percent of a 3 dollar a mile 300 mile run two months ago . 3k miles a week *1.10= 3100, fuel is about .30 if you fuel at the best local places, fixed payment of 500 a week plus insurance and WC , about 700 total or 3k miles /700= .23 cpm, .10 cpm for maintenance , total cost without catastrophe = .63 cpm. Still clearing .47 cpm .

 

It doesn't sound like long term it will work being home 3 days a wk and w/ends. Somehow , not only do you have to make the truck payment but also need to build a maintenance acct. You get beyond that warrant period , and out of pocket costs go way up. The question remains to be seen over 2 or 3 yrs if you can manage to feed the maintenance acct. , keep timely payments and manage a savings too. One thing that has been a long time problem with LP , is that many have paid into better than 80% of the cost of a new truck only to fall victim of scams that use economic times as a crutch for the slow freight , and low rates. The end result is they lose the truck after paying 70k into it. I personally been on the brink of buying my own for 4 or 5 yrs now , but absolutely will not do LP. , a bank loan from my bank is the only way I'll go. I just do not trust the holder of the title to my truck to be my bread and butter too. To me it's giving a stranger the right to be the one who controls your financial well being. However , I can see working for a company as a company driver 3 or 4 yrs , and based on your relationship with them going the LP. They're not a stranger in that regard , they know you and you know them.

 

What the hell do you mean its not bad. 47 cpm is company driver wages.

 

Those are company wages, but if you buy a truck traditionally then you have the same payments and expenses he does and unless you stumble into a gravy train job then you will average no better. Percent pay sounds good and if you happen to be leased to someone with consistent good paying freight then it is ok if you pick your own loads, but most times it isn't much if any better than mileage pay.