Can you buy out a company lease?

Discussion in 'Ask An Owner Operator' started by Boo-Radley, Dec 24, 2011.

  1. Dec 24, 2011 #1
    Boo-Radley

    Boo-Radley Bobtail Member

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    portland, or
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    It seems to me that the thing that really hurts drivers on a company lease is the big monthly payment. With weekly payment of $500 or more, your monthly payment will be huge.

    Is it possible to run the company lease for a year or so, refinance, and buy out the lease. That way you could get the payment reduced by 50% or more.

    Will any companies let a driver do that?
     
    Boo-Radley, Dec 24, 2011
    Boo-Radley, Dec 24, 2011
    #1
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  3. Dec 24, 2011 #2
    Big John

    Big John Road Train Member

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    If they could do that why lease the truck in the first place.
     
    Big John, Dec 24, 2011
    Big John, Dec 24, 2011
    #2
    keepitsimple Thanks this.
  4. Dec 24, 2011 #3
    cpttuttle

    cpttuttle Medium Load Member

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    that would be in the contract to wether there is a early payoff penalty
     
    cpttuttle, Dec 24, 2011
    cpttuttle, Dec 24, 2011
    #3
  5. Dec 24, 2011 #4
    Boo-Radley

    Boo-Radley Bobtail Member

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    Dec 15, 2011
    portland, or
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    The early pay-off penalty is what I'm wondering about.

    Are these standard company leases a "take it or leave it" deal, or can one negotiate better terms?
     
    Boo-Radley, Dec 24, 2011
    Boo-Radley, Dec 24, 2011
    #4
  7. Dec 24, 2011 #5
    SHC

    SHC Spoiled Rotten Brat O/O

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    Westville, IN
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    You can buy-out ANY lease. Only problem is that you have to pay the total sum of ALL payments to buy it out. There is no discount for early payoff like with a loan, if your lease is for $700 a week, and it is for 156 weeks, you pay the total for EVERY week just as if you were to run it the entire 156 weeks. There is NO benifit to paying off the lease early and you pay the SAME amount no matter what.

    So go to a bank, get a loan, and pay for it w/o the 26% intrest rate and crazy payments. If your creidt is not good enough and you don't have the cash available to buy it, then you are in no position to be buying a truck in my opnion becuase you have no back-up funds or a good business plan to succeed.
     
    SHC, Dec 24, 2011
    SHC, Dec 24, 2011
    #5
    scatruck and otherhalftw Thank this.
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