The truth about C.R. England.

# Morella - Sounds like it's working out OK for you and your husband, but none of your posts on the issue address the cost of money for the lease vs buying a truck outright. Companies offer these deals, and make good money on them, because there are a lot of drivers who either don't understand the real costs, or really, really want to own that truck and can't get anyone else to lend them the money.

The company is not doing you any kind of favor in any way, shape or form. It's a business deal, and they're making good money on it, more than you are, because that's the way their lawyers and accountants set it up. And the day they can't get what they want out of the deal is the day that it comes to and end, and another kind of deal comes out of the woodwork.

 

Of course they are going to make money on it. Just because they make money on the deal, doesnt mean they arent doing you a favor to. If you lease and make more money than you would as a company driver, then it IS doing you a favor. You think theyre going to lease you a truck for $0.00 profit? I hope you dont run a business yourself, cause without profit you will not last long.

 

The point is, lease-to-own costs you significantly more than getting your own financing through a dealer or a bank. If you buy into it, you're leaving money on the table...a lot of it. It's a very one-sided deal, and you're on the wrong side of it.

But, if it makes you happy, and you think they're doing you a favor, have at it! That's the objective of the whole multi-million dollar advertising and marketing campaign to sell this thing, to make you think it's a good deal! And it's working brilliantly, the lambs are marching to the slaughter!

I had a momentary lapse of reason in thinking I could explain it any better than the hundreds who've done so before. I'm starting to get it...there are a lot of people who are bound and determined to do what they're gonna do, and the facts have nothing to do with their decisions.

The folks who came up with this whole scheme sure have it figured out, I'll give them that.

 

I actually agree with alot of what you say here. Yes, if you can get your own financing, then you would be better off doing that. And yes, Leasing is not for everyone. Alot of people that lease will fail, but not all leases are equal, and not all people that sign a lease are equal. I probably would not recommend leasing to most people, but it can be a viable business model for some people.

As someone said before. Its for people that can NOT get their own financing. And if someone has bad credit, their is a good chance they would not be able to run a lease business profitably. But bad things do happen to good people. And in some cases, a Lease may just be the leg back up to get them back on their feet.

Ultimately it is up to the individual to read the contract and decide if they can or cant do this.

 

Agreed on all of that.

 

I am not going to open up a can of worms about leasing or not. This is just sometning to think about.

If you have bad credit, and have to do a L/P plan in order to buy a truck, and you lease from a company that has a balloon payment at the end, where are you going to borrow the money to make the balloon if your credit is bad?

Also I have seen figures here stating the total cost of the truck counting the balloon payment. What is missing is the amount of interest that will have to be paid on the balloon. This would have to be added in also.

If a person decides to lease, wouldn't a plan with an extremely low buyout be better. 35-40K buyouts almost guarantee the truck will be returned, only to be leased out again to someone else..

 

Are you saying Lease is a better tax advantage? Or purchase?

 

New truck/trailer financing costs are about 8% with good credit.

 

Facts are always helpful in the discussion, if people would only learn to pay attention to them.

 

I don't know exactly how the lease agreement is structured from a tax perspective. However, one thing I do know is that these outfits are largely run by accountants and lawyers. One of their main strategies is always to minimize their tax liabilities. They do this by claiming as many tax deductions as possible for themselves, while laying off as much taxable income as possible onto other parties. I can guess which side of the equation leasees fall into. This is one of the reasons they just love the lease-to-own business!

If you want to have maximum control over your financial situation, including income, liabilities, and taxes, you need to own that truck, not lease it.