All for nothing

When you purchase a new vehicle and it comes with a warranty, the manufacture agrees to repair or replace whatever is listed in the warranty under the warranty stipulations. When the manufacture does not, due to whatever excuse on the manufacture. The manufacture could be liable. It only takes on average $70 at the local courthouse to file a lawsuit.

 

I’m just not sure how the OP didn’t have a considerable amount set aside in his business account to cover something like this. After two years you should have enough to cover a major breakdown/repair. Sounds to me like the failure is in business management, not just the DEF sensor.
I will say that I have firsthand knowledge of companies that will gladly put you in a loaner, move payments to the end of the term, and even finance your repairs if need be. They want you to succeed… they make more off of you running than they do off of your lease.

 

I will agree they want you to succeed, but mainly in the hope you will lease another truck.

Say a guy does $250,000 in revenue to the truck. That means Schneider's cut is about $100,000 gross. Out of that comes cargo insurance, trailer costs, sales staff, Ops staff, and IT infrastructure among other things. I would be surprised if each lease truck nets SNI $15,000 a year. My rough guess is about $7,000 a year.

A truck lease is (to the best of my knowledge) $1,150 a week for 150 weeks with a $5,000 deposit. The balloon payment at the end is at least $75,000. Assuming you make all payments and buy the truck at the end, in three years you've paid $250,000 for a truck that cost SFI less than $150,000. Or roughly $22,000 a year in profit.

I doubt Schneider would push their IC program like they do if they could not lease tractors to their "Independent Business Contract Operators".

 

In your example I completely agree. But I will say that you would have to be insane to sign up for that. There are companies out there that aren’t out to screw you.

 

Part of that weekly payment is going into a maintenance account. Anything in that account at the end of the lease can be put towards the balloon payment. It's also a shorter term payment plan than most lease purchases I've heard of, so of course the payments are higher. Not to say they aren't screwing their clients. Maybe they are. But unless you're writing a check for a new truck, there will be interest paid. The company you do business with will profit. If a person does manage to keep up on the payments and stash enough away for the balloon payment then he has a paid off truck still under warranty that's only had one driver in it. For some it may be worth it. For others, not so much. If they start out underfunded, then it may be "all for nothing"

 

This thread shows the business risk that most people getting into these deals don't consider. A company driver having this problem can either quit or hop into another company truck and be on his/her merry way. And that driver would most likely earn some layover/breakdown pay for their troubles. As a lease op, you're chained to that truck and the weekly payments so you better be prepared.

 

I looked into SFI in August and they wanted 3k down and 1400 a week for 3 years for a new freightliner. Forget what the balloon was.
You must put the walk a way money in the bank first , then a few months living expenses and keep building them.
My Dad always said learn to live on half of what you make and you will be fine.

 

Was the 1400 including the MMA? I talked to them around that time and they said the down-payment would be determined on a case by case basis and could be as low as 500 or as high as 12k depending on experience, business plan, etc. She didn't go into specific payment amounts but she did say that the expected wait for a new truck would be after the first of the year.

 

I think it was including maintenance.
I think they wanted me to match USA 1500 deposit.
If you want to own the truck after the lease three years is better. But with the cost of fuel and the uncertainty in the economy I said no.
Got a high paying home on weekends job instead.