Lease to own means the same thing as rent to own. Lease to own means renting something, and your rent payments go towards buying the thing you were renting. If you pay enough rent that it matches the selling price, you have bought the thing you were renting.
Being on a Lease Purchase program at a trucking company sounds like it is leasing to own the truck because the word Purchase is in the name Lease Purchase. To purchase something means to buy something. But maybe the term Lease Purchase is a misnomer. Maybe the trucking companies that call their leasing program Lease Purchase for some other reason, and Lease Purchase is not lease to own.
On the Lease Purchase program at US Xpress, does one's lease payments on the truck go toward buying the truck so that once one has paid enough lease payments to match the price of the truck, one has bought the truck?
On the Lease Purchase program at most other megacarriers who have a program called Lease Purchase, does one's lease payments on the truck go toward buying the truck so that once one has paid enough lease payments to match the price of the truck, one has bought the truck?
-
New Lease Purchase Jobs $0 Down and other incentives Click Here to see offersDismiss Notice
The only stupid question is the one not asked....
Discussion in 'Lease Purchase Trucking Forum' started by expedite_it, Sep 24, 2020.
-
-
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
-
Its typically lease with the option to buy. In other words, you can lease the truck until they are ready to sell it. At which point you can buy it for the selling price, or not. If not, they sell it to someone else. Depending on your lease contract, some or all of your payments may go toward purchase, but i doubt you are putting up $150k+ in payments on a lease at a mega.
expedite_it Thanks this. -
One important factor is, if there's a balloon payment at the end of the lease.
John Christner Trucking, the balloon payment is $1.00 (one dollar) and the truck is yours.
Many companies, the balloon payment is the market value of the truck.expedite_it Thanks this. -
Bean Jr. Thanks this.
-
If the balloon payment is a buck, that's really the opposite of a balloon payment, but I know what you mean.
If the balloon payment is the market value of the truck, then how is it lease to own? I mean, heck, if the balloon payment is the market value of the truck, then your lease payments are not really paying off the price of the truck.
If your balloon payment is the market value of the truck, "Lease Purchase" is a misnomer.Bean Jr. Thanks this. -
expedite_it Thanks this.
-
I remember one driver that did the lease/purchase and at the end of the contract he had to pay $45K to get the truck.
The dollar buyout is the best deal I've seen.Bean Jr. Thanks this.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.