Ok, bad title but can't think of how to describe what we are looking at without saying "It's like a LP but without all the bad stuff."
After a lot of thought I wanted to throw this out and get some feedback.
First, this is not an LP. It is a straight finance deal. At the end you own the truck. You can make additional payments to reduce amount owed. Pay it off early. No pre-payment penalties.
Next, we will have trucks picked out that have had inspections and are properly repaired. Yeah, they are used trucks and stuff will happen but we want to know that someone with integrity and knowledge is looking at them. Trucks will be in the $35-$45K range. Under 600k miles. Nothing fancy.
Will will include a $1,000 maintenance credit. We want people to succeed. And getting hit with a big bill in the first couple months can be a killer.
We will require a reserve fund. Yes it is one area that has been an issue with the LP field but remember, this is not a "I can turn it in anytime deal". This is a big risk on our parts and we don't have a bunch of recruits waiting to sign on the line. We don't buy this truck until you are signing up.
You will be required to be leased to us. But we are not a mileage pay with high overhead and low rates. Our guys are making good money. Plus, remember. No pre-payment penalty.
There will be a vetting process. Having a CDL and willing to sign is not the requirement. We want business people that want to own a truck and run it like a business. We will provide training on a lot of this but want to see that someone has some understanding of the expenses of running a trucking business.
OK, I'm tired. I am sure I am missing plenty. So blast away. Tell me why it won't work. How someone would be crazy to do this. But then please also include what needs to be tweaked to make it work and a program you would recommend.
Not trying to design this by committee but would love feedback.
The Anti-Lease Purchase Program
Discussion in 'Ask An Owner Operator' started by BigBadBill, Apr 10, 2012.
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Roadmedic, scottied67, rollin coal and 4 others Thank this.
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I can vouch that Bill means what he says , on this deal . His staff is great to talk to and very helpful and go out of their way to be accommodating .
They do want to see you succeed !!!
Signed
US MarineSHC and BigBadBill Thank this. -
Sounds like a good deal.
I admire that you guys are going to run the applicant thru the ringer and make sure they are what will work best for your company. Not many places look out for the buyer/driver's best interests. -
Hmmm... instead of a set monthly payment, can you deduct a cents-per-mile payment? That way your fixed costs won't build up as it would with daily payments..
Or, on a 28 day cycle, so equipment owners could take off the last few days of any month ending with more than 28 days without having to play "catch up"?
And could you throw in a coupon for a good Oriental Massage? -
SHC and Mommas_money_maker Thank this.
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I don't know if I'll get in trouble for saying this ... Lol
I'm soon to be the first TRUCK BUYER in Bills Program . By the end of this week ( fingers crossed ) .
He is sincere about getting these trucks and it is a PURHASE ... It's not a WALK AWAY DEAL its the REAL DEAL and they mean business and the finciancing is SOUND -
I like the idea I just hope you don't end upgetting burned on it. True the vetting process needs to be better but honestly even good people with good intentions can fail.
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So, are you buying the trucks and selling them to drivers with you doing the financing ? Or, is the financing between the finance company and the driver ? In other words, are you a "go-between" or what ? P.S. Yes, it'll work if you keep all trucks working, hire premium drivers, haul premium freight, and all the planets line up perfectly. Your question should actually be, can you forge ahead and weather any setbacks that come along ? Because there will be setbacks, the difference between success/failure is preparedness/knowledge/experience with a little luck thrown in.
BigBadBill Thanks this. -
That said, it sounds like you guys are growing with some good people which is very good. But maintain slow to steady. Balloon type growth typically leads to burst.rollin coal and BigBadBill Thank this.
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