Input on this Potential O/O Deal

i'd drive that star car

Just my luck.

 

Well here I go my two cents worth. A lease agreement is only worth the paper it's written on and the names signed to it. One question I have is are these actually trucks that they have purchased or are they leasing. Seems to me if they aren't actually purchasing the trucks and they are leased then you have no recourse if the worst case scenario comes into play.

I'm still waiting to see the actual Tax returns this as along with the rest I find it really hard to swallow $200 k AFTER expenses.

 

negative negative....

 

I believe that some companies lease the trucks and then turn around and lease to the driver for a little more. This provides them a no cash outlay for the program. This is just a business thought. I have never really looked into it. But I remember a friend leased a truck from a smaller company and close to the end of the lease they bought the truck back at a premium. He also found out that the company had never paid any of the lease payments.

 

Did you have a lawer look over your agreement to be sure there was no way for them to weazel out of handing over the truck when you paid for it?

 

I read it, have YOU seen any documentation that shows them as the bona fide legal owners, like the registration? Who's the lien holder? Is the lien holder aware of this deal? How are you going to know that they made all the payments? Did your lawyer and CPA look over the agreement? I have to agree with some of the others any deal that sounds too good normally is. No company is in business to give away money, equipment or clients.

I can tell you that every lease agreement that we had wasn't to protect the lease operator, we were fair, but frankly almost any companies will tell you that some, not all Owner Operators are some of the most difficult to deal with from a companies stand point. Most are hard working great people and are only trying to grow and provide for their families, just a few bad apples that spoil the deal for the rest as is in any profession.

With only five trucks they don't have the buying power that the Mega Fleets have so they are paying a premium price on equipment.

What's the pay out going to be at the end of the lease? A balloon payment based on the balance or current market value?

How are the tax deductions going to work and is that in the contract? Unless you have total control over the truck you'll be considered a driver, if you have total control then you'll be a 1099 contractor and responsible for all your taxes, SS etc. What about workers comp? Health insurance?

I'd still want to see a bona fide tax return if I were you.

Hey I'm all for you and hope it works I just have red flashing lights going off and would hate to see you have some of the very problems that you've pointed out to others that have posted about lease purchase deals.
Kepp us posted I know there are others besides me that are interested in seeing how this works for you. Good Luck and be safe!

 

So it's working out for you? You're making enough money to justify all the expenses?

Glad to hear it. We want to try O/O some day but have a lot more to learn first!!