I am Going To Lease A Truck. Tell me Who To Go With.

Boy, now we are posting in BOLD hoping to get your point across. Chompi, although your intentions are honorable, your mind is closed. Not saying that 80% of people fail at leasing (also called running a business) but that is the average that the Small Business Administration says is for any small business. Some people just suck at the self discipline that it takes to make a business work.

For Everyone: The FMCSA and the California CARB has pretty much painted the picture that long nosed Pete's and other Non-aerodynamic trucks will be "encouraged" off the road over the next few years. As of now, if you don't have a waiver you cannot go to California with a truck that is not "Smartway" compliant. Anyone in the trucking business or getting into the trucking business should be adjusting their 5 year business plan to transition into a smartway compliant truck if they don't already have one. YES, that means DEF and the new SCR engines that "can't breathe" but still can get 7MPG easy.

For a guy just arriving back on the scene, this guy will probably not qualify for a loan for $120,000 for a truck. If he does, he will be paying 9%-19% interest, blowing up the cost of the truck to exceed $160,000.

THERE ARE GOOD LEASE COMPANIES OUT THERE. Few and far between, but I have met, and some have posted, that have completed leases on newer and older trucks. Ask for a copy of the lease for attorney review. If they don't want to give you a copy, they are probably hiding something. Do your homework: make a list of obligations that the lease will bestow upon you, as well as the obligations that the lease company will incurr for you. See if it fits your operating model layed out in your business plan.

If you can buy a brand new smartway compliant truck for around $120,000-130,000 with the ability to write off the full cost each year of the lease, then buy it for $1, then it is possible to get into your own O/O situation with a newer model truck within 4 years.

Of course, if you want to take Chompi's advice, go become a company driver and drive their truck. Nothing wrong with being a company driver.

 

I am here to tell you that you CAN make a living and do what you want to do. I am doing exactly that, as a new driver. I am Lease-purchasing a 12' cascadia through Success Leasing with Prime Inc. I had to put $11,500 down ($1500 was for the APU) and on a 3 1/2 year lease I am paying $117,000 for my truck with a $1 baloon payment at the end. They give me miles, but I am payed percentage. As Kevin Rutheford says, I have paid some stupid taxes over the last year, but am looking at a good year this year. Not all leases are bad, and not all drivers know how to run a business. Having cash put away is a great thing, but you will have to start off as a student and go through the training program with your 5 year absence. I would gladly train you, but I am not available until March.

 

Good Luck PICNIC !

 

I think Poker hound isn't smart. I can tell because it is usually the guy that likes to insult others that has a hidden craving to feel smart, because in the long run, he is not smart. Hey, he's gotta feel good about himself somehow. As far as not driving four years goes....did you keep your CDL? If so, you can get on with a company somewhere. Might have to ride with a trainer for a month but this whole idea of having to go back to a driving school is hogwash.

 

What Mark says makes sense. I've been trucking for fifteen years. I've picked many a brain from o/o's and leasers. My conclusion is that owning a truck and then leasing on with a company is a better bet. On the other hand, if you have the right connections, getting your own loads is better money.