Kevin Rutherfrauds own personal tractor throws a rod.

hey got a question what do I need to know to make a lease perchase work for me

 

You shouldn't be buying new trucks unless you earn enough so you can afford to. A couple hundred a month is chump change.

 

Own the carrier that fleeces, err... I mean, leases... trucks to drivers.

 

Get out your calculator. Do some honest math. If the numbers don't add up to your liking, don't do it.

 

$200/month invested at a 5% rate of return for 20 years is $82,500 ($153,000 at 10%). Pretty soon, you're talking about real money...

 

If you're buying a truck over 20yrs you wouldn't need insurance, you could find the payment in nickels and dimes that have fallen down the back of the sofa.

 

But in 5 years aren't you going to be making that same new vs used argument & opting to pay the additional chump change to get new?

 

If you do then you will have equity in the old truck to use against the new one so the insurance will be less as the payment is lower.

Also it would take 20yrs to get the $82,500 and then only if your investment returned 5%. If you had a problem at any time during the first few years, you wouldn't have enough to cover the payment for very long, whereas these insurance policies (if you get a good one) will cover the payment for as long as you are unable to drive the truck.

Obviously if you don't claim then it is money you could've saved, but I see it as essential and part of the cost of being in business. If you can't afford an extra couple hundred bucks a month then you shouldn't be buying a new truck in the first place.

 

How do some of you stay in business? You need at least one years expenses in the bank. What would happen if you need a in frame? The thing is a truck in the shop earns no money plus cost of repairs. Have found the truck payment keep you turning more miles = more revenue in the bank.

 

I'm gonna get a premium occupational accident insurance policy then drive into the nearest bridge piling the next day. Nothing like an extended paid vacation.