Lease Purchase with a small company

You mentioned something here that has me thinking you need to abandon this idea asap. You have no credit and no money for a decent down payment so this is your only option, this is how LP plans are always done, they target anxious people with very little ability to go get a truck on their own.

The reason outside financing groups and dealers do that is because they need to know their going to get their money with a degree of certainty, in other words they need you to succeed because the don't want you to default on the loan. They don't want to have to come get the truck back because what is a bank going to do with an alost million mile truck that nobody wants, and a dealer doesn't want it back for the same reason.

The company is willing to do this and doesn't care about your credit or current financial status and that isn't at least something to consider in your mind, agian as many of us can attest to this is LP 101. When the company does this you need to realize that they don't have any concern for your success because they don't care of you fail and if you do they just take the truck back and keep whatever money you paid them and lease it to somone else, and if their luck they'll get some of the repairs done on your dime befor they take it back. I just don't like the idea that you will be making payments on a high milage truck that isn't worth what your going to pay for it to the people that also control your income, way to much power in their hands, and if they know your doing it as an only option then they really have you over a barrel.

The more i read the more i would rather encourage you to wait until you have more financial options and do something then with a dealer, then you can keep your truck dealings seperated from your bussiness dealings. Hey then you will have more options as well like you can go work for who you want and your not stuck with this company if doesn't go like you thought, and you can even maybe get the truck you want instead whatever these people have sitting around. Just some more things to consider.

 

Well said....

 

My son bought his first truck, an International cabover, for $8,000.00 cash. He was 25 IIRC.... paid cash.

He's been thru A LOT of trucks since then... many projects, fix-er upper's and one very nice 379 glider. Recently he told me the smartest thing he could have done was to keep that old Farmall and have put all that $$$ he made into the bank....

He's now driving a '97 pete 377.. a $6,000 truck he bought two years ago.

 

The exact same thing happen to me when i got my authority in 2010. I made my first truck payment before i pull my first load. I replaced batteries and starter, all in the same month.

 

Listen to these guys they know what they are talking about I to had dreams of owning my own truck through lease purchase and lost everything I owned in the process not because of poor management but they controlled the miles and made only enough to pay them with nothing left over for me. I gave the truck back went back to being a company driver saved my money and baught a good used truck see the signature block. Its bought and paid for no payments. I still am driving for my company as a company driver until I am satisfied that everything I need to have done to the truck is taken care of I even got some spare tires for it. They are not trying to discourage you just want you to take everything in to consideration in hopes you wont make a costly mistake like some of us had. The information they have given me have been invaluable and have event taught me alot and have also saved me a bunch of time and money to boot trust me don't get in a hurry I know your young but most people of your age had a mentor like a father uncle grandpa or good friend that helped them get through the shark infested waters and they most likely started with an older model truck they paid a reasonable price for spent some wrench time on it to to alot of the repairs padded their maint account then broke out on their own. That's the smart way to go about it. It took me a while to go this route because I guess im hard headed but finally learned my lesson just my 02company cents.

 

let me put my two cents in also... A lease purchase is just that... You lease it then you have the balloon payment on the end to purchase it.. The only way you will ever be a true O/O is to buy your truck..get your own authority and roll down the road. Of my 40 yrs in this business 38 of them have been as an O/O. I have done well but i drove for 2 yrs saving my money so i could buy my first truck. Yeah i hated it and the pay wayyyyy back then was cheap but i saved and saved. Lease Purchase is just another way of you paying the payment (which is way over inflated) for something you dont own... I have read on here some posts of these lease purchase guys are only making $70 grand before taxes and after the companies take their cut... Not much more than a good company driver who can get up there in the 60 grand range and does not have the overhead. Lease purchase gives drivers the false hope they are owner operators and they truly are not. make the wise choice. drive for a company save your money then buy a truck and if you want lease it to a company or get your own authority either way its your truck and if you dont like the company your leased to you can take your truck and go some place else. not trying to discourge you just as others are not trying to just trying to show you its not all painted roses as companies want you to believe...RW