lease purchase or bank purchase?

I suggest you go through a bank. If you find you don't like TA you can always move to another carrier. And your right, .25 is hard to live on.
I looked into TA lease purchase and to me the truck prices were high. And don't they charge a over mileage fee?

 

What do you mean, 0.25 CPM? How do you get driver's wages if you buy a truck. Sounds like you are buying a job, not a truck. To top it off it's a bad paying job. The rip-off fleece purchases are paying at least 1.30 CPM with FSC and that isn't good.

 

I like to do business with my local Credit Union. They are a little more open to business moves like buying a truck. I have my business accounts, personal accounts, and Health Savings Account at the Credit Union, so I can walk in anytime and have a sit down with someone. And the rates are better than most other financial places. However you go about it, getting outside financing is better overall than most any lease purchase. Even the OEM financing arms of the dealerships offer better deal than almost any lease purchase deal. You can negotiate a price in buying elsewhere. Not always the case, but seems most carriers do the lease purchase thing as a way to supplement their income and really have no regard for the person. And buying somewhere else allows a person to take the truck elsewhere if the present carrier isn't working out. There is even the ability to lease to buy a truck from third party outfits like Lone Mountain Truck Leasing (haven't dealt with them). You will still not be obligated to the carrier.

 

Pay cash, things are much easier w/o a truck payment.....just saying.

 

It isn't a good idea to buy or lease a truck unless you have a decent amount of money saved to help pay for a major breakdown or to pay your expenses for several months should something happen.

Most of the lease purchase deals that I have checked with carriers doesn't work well for the drivers. You pay higher than retail for the truck and there are a number of expenses associated with the lease that can really mount up. Many that I have looked at would have the operator paying out as much as $800/week or more. If you are sick or take time off those payments still go on. That is where many get into trouble.

There are legitimate leasing companies and lenders who will loan money for class 8 equipment as long as you have driving experience and a good down payment. If you can't come up with a decent down payment or have money saved then you are not ready to become an owner operator. You should NEVER start any business without sufficient working capital. I am amazed at how many are willing to get involved in a lease program with a carrier who have absolutely NO money. It takes a lot of money to keep trucks moving. There are some who start on a shoestring and get lucky. Most don't.

 

If you choose a lease/purchase program, make sure you can walk away with no obligations if things go sour.

If you're financed through a bank they will make you pay it off one way or the other, even if you can't- or don't- drive anymore.

 

When you lease or buy a truck you are going into business. Being in business requires taking risk. Unless you are prepared to take a risk then you don't need to go into business.

 

Sure, if you have that type of cash in the bank, but for the rest of us, We gotta do what we gotta do.

 

It isn't a matter of doing what you "gotta do" but what you WANT to do. No one has to get involved in a lease purchase with a carrier. No one is forced to buy a truck, whether you lease, finance, or purchase it outright. No one has to become an owner operator. You can earn a very good living and never own a truck. Most people will never own a truck. Not everyone should own a truck. While paying cash is the best way to buy a truck, most will not have the discipline to wait and save until they can afford to pay cash. You can save enough to pay cash. All it takes is a willingness to commit to save a minimum amount of money out of every paycheck. If you cannot save as a company driver then I don't see how you expect to make it as an owner operator. We all must live within out means. Some will make less as a lease operator or owner operator than they would as a company driver. Most people who want their own truck never seem to consider the down side of ownership. What if the economy goes down again? The payments and bills go on, regardless of whether the economy is good or bad. There is absolutely no reason anyone should commit to paying $500-800/week to lease a truck. You may be promised 3,000 miles per week. What if you only get half that amount each week? Could you make the numbers work? It is not uncommon for drivers to get 1,500-2,200 miles per week during the slow time of the year. If you are leasing a truck and don't have any money saved, would you still be able to make your weekly payments and still pay the bills at home? As a company driver you would still be making money even with 1,500 miles in a week. A lease operator may be going in the hole with each week. It is always best to look at the down side of any financial commitment.