Lease purchase mileage or percentage

Lease affords you the opportunity of keeping your credit line open because you have no income to debt ratio being reported. Where as a loan to buy a truck does. A lease is tax deductible on your truck payments. Loans you can only tax deduct the depreciation over 3yrs

 

Question, What if you lease purchase a truck from a lot instead of the company?
This industry has a habit of being small minded that's why truckers lose. Lease purchase just isnt about taxes write off etc. That 120,000-170,000 truck dont fall from the sky. They're taking a risk too. Resale value yeah it might get them 20% at auction. The point is most people think lease purchase is leaving credit lines open but the truth is I never leased purchased and I have excellent credit. I never seen a mass amount of people who work 4 weeks in a row to make 4500 a month. They look different soon after signing that lease purchase. Look at YouTube before and after. Most get screwed.

 

Of course lease purchase can work. Given that truck driving is an extremely high turnover business, it should be no surprise that doing a lease purchase program has a high failure rate too. I personally think that most people that didn't succeed as a lease operator would not have succeeded as a company driver either. Many truckers just love to hear themselves talk, and when they do talk they're usually complaining. If you doubt me, just listen to your CB sometime. So, don't expect a bunch of rosy positives about anything from truckers, especially lease programs. Not all companies are out to screw you, in fact most are not. Personally, I get sick and tired of hearing everyone say that companies just want to make money off of lease purchase programs. of course companies want to make money. That is why they are in business idiots. If the companies were not making money then they could not pay anybody like you and me. so, it is natural and beneficial for all parties for companies to make money. And if they happened to make a little money off of a lease purchase, then fine. The lease purchase program when done properly gives the driver another option than being a company driver if they don't have a down payment. Yes, they will pay more for that truck than it costs. but, you will pay more than a truck cost if you finance it also because you will be paying interest on the truck. Most reputable companies will not charge much more for the lease purchase than you would have paid for the truck plus interest through traditional financing. So, it is not all bad. As to your question, most prefer percentage, you stand to make more money that way. However, as mentioned earlier, there is a little more risk involved. Some companies, Roehl included, have stopped offering percentage pay to their lease operators. This enables the company to keep more profits on the lucrative loads while keeping the drivers pay steady. I don't particularly like it but that is a development that has been happening.

 

I did a lease purchase with ACT IN MO.Completed it drove the truck for 2 more yrs. Sold it bought brand new glider. Leaded it to a company. Im currently avg 2mi to truck after fuel. The lease purshase taught me how to manage a truck. If you fail at a lease you walkaway. You buy from a bank and fail you lose everything car house who knows maybe a divorce to

 

lol

 

You have gotten some good advice and I’ll give you one more piece; create a new thread and post it in a different forum. Either “questions for experienced drivers” or something like that. Ask only about the difference in pay systems and mention nothing about lease purchase (I believe your question was in fact trying to determine pros and cons between cpm and percentage pay?).
There are a ton of folks here that feel so strongly about lease purchase that they are like a bull seeing red; they just fixate on that and not come close to answering your actual question.
I see that this thread was pretty old, what did you end up doing?

 

Pretty simple question actually, could of been answered easily,but people are so negative and want to know every little detail,makes one think their catfishing. Mileage or percentage? That was the question. I'll say percentage. Percen

Now that's a proper answer to a simple question thanks dude