Lease without Purchase?

Have a look at JCT. They have a lease program where you only play $120 a week plus so much per mile on a brand new truck. This will be a big deal when you want time off because you won't go nearly so far in the hole. The lease is set up so that you buy the truck for $1 after 5 years but you don't have to. Many drivers there trade in every few years to keep themselves in a new truck.

Have a look at the favorite companies section of this forum. The "Running with JCT" will be an info filled read. Sharp has posted some detailed numbers to have a look at.

Riverside also has a variable lease program like JCT's.

Central has a L/O program that perfectly matches your original idea. Rent a new truck with no intention to buy.

 

This whole going in the hole thing is nonsense ... there's no such thing, if you're running your business right. It's just cash flow, your salary is an expense and it should never be such that you need all your cash flow to meet payroll.

To put in perspective and keeping with the season. You know why it's called "Black Friday". Retailers are in the "hole" for the first 11 months of the year, it's the Christmas shopping season when they finally break even and make a profit.

A single proprietorship trucking business is the same. Some weeks you make more revenue than others, some weeks you make none. The revenue from the flush weeks need to cover your expenses - including your payroll - of the lean weeks.

When you do your business plan, you need to know your payroll requirements - your salary. Then your lease business needs to throw off enough cash to meet your payroll, operating expenses, build a cash reserve and make a profit.

This is key reason so many fail at leasing, they look at their statement as a paycheck. Not as the accounts receivable that it actually is.

 

ATS (Anderson) has a 12 month straight lease. Eagle Logistics (celadon) walk away lease on new truck

 

Yeah and get paid a whoppin .84 cpm to haul reefer!!! That is about one of the worse LP deals out here, probably tied with CR england.

 

I think a lot of company's that lease will not require you to purchase the truck. The bad thing is that you still are responsible for the truck and maintenance during the lease. You will probably still have to have a maintance account / escrow account and have to pay your own taxes and insurance.

There are in my opinion some good companies when it comes to lease: ACT, ATC, SNI Choice, Prime and of course in doing good at Roadrunner.

Have you thought about looking at any company's that pay 10-99 on a % or mileage?

Well hope you find that company that best fits your needs..

 

Save your money and buy a pre 2003 truck

 

I believe leasing a truck ends up just like oilfield jobs for most people. They immediately finance new vehicles, house, and spend the money like it's always going to be there. To later find out they're in whole and money stops.
Leasing shouldn't be looked at as a way to make more but as way to own a truck. That's the whole point in the program. If you already have a family, house, and lots of bills leasing won't work for you. I only suggest leasing to people who are either single or have no kids with little to no debt at home. So that way the majority of the money you do make can be put back in savings. That way by the end of your lease you can one either one pay off the truck or put a good down payment on another. It also helps majorly to have that money Incase of truck problems.
My expenses at home are $1600 and my road expenses (food & cigarettes) is $400 a month. I put everything else in the bank and ride on it. Don't the big $$ entice you to spend. Keep your debt down and buy out right as much as possible.

 

Would you happen to have an old ad reqarding the walk away lease from Eagle? Or do you know where I might find one?

 

Celedon went out of business last year, primarily because of their lease program.