I am investigating a Company called Starport Transportation. They advertise a Lease for $1000.00 if you live outside the Springfield, MO. area. $0 if with in 200 miles. No credit check. Although they offer several companies to work for you are not tied into those companies with the truck.
When asked they said the only criteria for a company is that they are willing to take the payment from your settlement and mail it directly to them.
The payments ARE high. 895/week includes bobtail and physical damage insurance 2290 federal tax and property taxes. But at the end of the lease you have the option of buying the truck for 1 buck. Leases range from 3 - 5 years depending on the amount of time the truck has previously been leased. New is 5 yrs and down from there.
They even offer APU's for $65 - $75/wk depending on the length of the lease.
Advantages I see are: a way to work myself out of the hole I created by bad investing in real estate two years ago. Residual value at the end of the lease. Newer truck so I know how it was maintaned during it's life. The ability to move the truck to another company if the present one does not preform as promised. Building credit while doing what I have always done anyway.
Disadvatages I see are: High payments that guarantee lower income through the lease term. Although the trucks come with a good warranty from the factory, a break down could put a person in the hole in a hurry. Time off will have to be scheduled according to the payments and the revenue. (I did say "work" out of the hole).
The point here is: At this time this is all I know about this company. I will be posting my experience with them in the future. If anyone else has info or experience with them I would be grateful for their views.
Starport Transportation (leaseing)
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At the end of the term I will have paid 182K for a brand new truck (less if it was slightly used). The truck will have 780k miles on it when the lease purchase is complete. it will be due for an overhaul at $14 - 20K. Only, I will be the only one that has driven it and maintaned it.
Average 12,371 mi.s per month at avrg $1.50/mi to the truck or 2855 mi/wk avrg. (miles taken from comany records for 50 trucks in service over a two yr period.) ( actual company records reflctd 1.56/mi ovr last three mo. previous 6 mo. avrg was 1.73) (mpg's per Co. recrds was 6.62 and cost was 2.14 w/co discnts)
- 4639.13 broker and trailer
- 4589.13 fuel 6.2mpg # 2.30/gal
- 213.37 tire fund/mo.
- 64.75 PM/mo
- 348.00 tolls/mo
- 1027.00 insurance/mo
- 183.00 Lics/mo
- 124.21 fuel tax/mo
- 307.00 off load chrges/mo
- 611.00 Maint./mo
- 100.00 Q. Comm
- 76.00 scaling loads
- 112.00 washing truck
- 107.00 motels/mo
- 64.00 Mics expnses
- 110.00 phone
- 3466.67 truck paymnt/mo 800/wk x 52 : 12mo.s Inclds hevy trk tax & proprty tax
- 16,151.67 expenses
Co. Driver = .34/mi x 12371/mo x 5yrs = 252,368.84
O/O # 2404.83/mo x 12 x 5yrs = -144,289.80
Loss of income = 108,079.04
residual value of truck = -40,000.00
total loss of incm over 5 yrs = 68,079.04
The questions actually should be: Does the end justify the means? What is the plan after the truck is paid off? how will the loss of income over 5 yrs be compensated for in the subsaquent years? Will the company I work for still match rates to cost in the event fuel goes through the roof again? Do I have a safety net in the event something catastrophic occures?(early engine trouble, Transmission problems, higher fuel cost Exct.) NO PLAN is insane. Even with a plan a guy has to be a bit crazy anyway.
The cost of ownership.... $68,079.00
The freedom of controling ones own future... pricless.simplyred1962 Thanks this.
Keep in mind that you based it on xxxxx miles per month.
What happens if the miles are cut way down because the economy is failing? The payment is still due, whether the truck is ran or not.
I suggest factoring in some bad weeks, because they do happen.
My personal circumstances will weather this type of week. ie. no children at home. no mortgage payment to make. Lost my vehicles when working for Crash and Roll England under a fleece truck and a failed construction venture I undertook.
I am thinking as well, (taking this advice seriously) bad weeks can be buffered by putting away for the future during weeks in excess of the figures I am using.
If I can manage to live off of 1000/mo income it will go a long way toward rainy days and little or no miles.
A tough ### undertaking? Yeah it is. Alott of prayer and hussle? yup. But as an old friend told me today... growing old ain't for sissies... LOL.
Thank you again for the heads up...
Something does not sound right about this thread. You have been in the trucking industry for 28yrs? and your asking a question as such about a outrageous lease amount. I have been in the industry for little over three years and I know better on a lease note with that amount. You could do better financing a used truck for a quarter of the amount your going to be leasing for.
R right rookie. This reaks of free advertising. Nobody could be smart enough to have run all those numbers be stupid enough t leave out a reserve or even Check current rates and freight volumes unless they were purposely skewing the results
By the way. The new emision motors run so hot they are not going anywhere near 800k before rebuilding
A little tip for ajyone reading this. If you can BARELY make it work on paper. It will never work in the real world
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