Need a change

Just about any lease...can be a good one. But all leases are a nightmare.

The only lease that is truly a good one. Is done by a single person, with ZERO debt, and at least $15k in the bank to start.

Our company offers a lease. A nice one too. We have drivers jumping all over it.

But after doing the math. I figured it would take 4000 miles a week, to make the same as I do now. As a company driver, getting 2200 a week average...with weekends home.

Do ALL your homework before getting into a lease.

 

No, it wouldn't.

Most lease are done with high mileage trucks. 300K - 600k miles. Most leases are 3 years long.

The "simple" payment at my company, is $350 a week. That Mustang would be paid for in less than a year.

That "simple" payment, comes to $550 per week, after everything is brought into the picture. Insurance, pre pass, maintenance, QualCom, and much more.

The payment on the Mustang...never increases.

Everyone tells you to look at the "fixed" cost of operating a truck.

What you pay yourself per mile.....is a fixed cost.

Let's say you want to make .35 a mile, and fuel is $2.70 a gallon. And you're lucky enough to have a truck that gets 6.5 MPG every day without fail. Fuel is a fixed cost of .41 a mile, if you never idle the truck.

.76 a mile is gone from your earnings. The remaining goes toward your truck payment. Most companies will pay you about $1.20 a mile while leasing a truck. This includes the fuel surcharge at this time.

You're left with .44 a mile to make your truck payment with, and effect future repairs and maintenance.

2300 miles a week will make your payment. But it will not provide you with any money for that maintenance. No tires...No oil changes. And best of all...no benefits.

Most companies require an escrow account. usually .07 - .10 a mile. This comes out of your settlement check too.

Best picture. You now have .37 a mile to put toward that payment.

Without the escrow. You're ONE breakdown away, from losing your ###. And that's with THE best operating scenario.

And most, if not all these guys will tell you. The picture I just painted....was done while doing drugs. In other words...it ain't gonna happen.

 

I would say your better off saving some cash up and buying your own truck for about 20K. You can find some awesome deals for 20K and less and you should be able to run the truck for a year or even 2 without any major problems.

 

YES...

Just look at what you'll end up invested in that leased truck...its often more than the company paid for it new.

If anybody wants to pay $50,000 for a $20,000 truck, then a lease is the way to go.

 

Not to disparage the company's l/p program that they are so proud of (it's better than some from what I've seen) but I've heard multiple stories from multiple company drivers telling me that they are barely scraping by each week after making the truck note after converting over to the l/p program. Talked to one that I went through CDL school with and he says he's barely making 100 a week after the payment. That he was running fine as a co. driver but then after conversion they gave him a few good weeks of decent runs (about the same thing i was getting as a co. driver) and then nothing.

 

I cant help you with that one driver.