Reasons Not to Lease?

Rent to own then.

 

fender thats one of the two reasons im going to lease from malone. 1 i run my own life.. succeeed or fail is on me. 2. I can learn to be an o/o without sellign everything i have and praying to god it works. As far as i can see im renting a truck from a company to go out and dip my toe in the o/o world until i can buy my own truck (and run north carolina locals 5 days a week)

 

Rent to own? Now that's trailer park!!!

There's a huge multimillion dollar corporation in transportation that I'm sure you'll recognize that doesn't own one single piece of metal used in it's business. United Airlines - the world's largest airline leases every single airplane they use. Works for them.

Try reading this little article...

http://www.sba.gov/community/blogs/...ents/equipment-leasing-weighing-pros-and-cons

 

ironpony most of these guys can barely figure out their cable bills. Much less understand business or economics.

A universal truth : people who are afraid to do something hate those who dare to do it. If they cant get away with open hatred they resort to absolute worship.

 

I worked in the mid to late 90's for an outfit... Webster Trucking... they also ran BH Trucking and Brattleboro Haulage... anyone who's run the New England area would've seen them at one time or another... They hauled for C + S Grocers exclusively... well after 25 years they lost the contract to JB.. they became pretty #### big over the years with warehouses all over... I saw a post on a jb thread here with a link to a Brattleboro, Vt newspaper... after they closed shop according to the paper their list of assets was in the ball park of $5000 for office equipment... all their trucks were leased through Penske... and a side note... I'll bet Penske is having a fire sale if you're looking for a tractor...
Oh... BTW... They were also self insured for their medical... ie. they collected all the money and paid out the medical costs... No middleman like BCBS...

 

You may want to share your source of info with the other stock holders

United airlines lost 10's of millions of dollars a year for almost 10 years running, until it had to merge with a competitor airlines, at which time the United top management was replaced. Don't tell me that is your model of a successful operation?

Of course the Airline that took over United has filed bankruptcy at least twice.

But this posting is about leasing. Since GE is a large aircraft lease company and may own more aircraft than any airlines, but they don't sell tickets for any flights and look at all the money they make.

Leasing is a fine business model so long as the return is greater than the cost and the risk is low. Leasing equipment from the source of income is high risk.

 

Cy ran since you want to talk smack about things you dont understand:

First all the airlines filed losses for years during the airline wars.

Secondly i worked for a company that ONLY leases trucks from pensky. It uses a brokerage/payroll service that technically theyre leased on to. They ONLY used leased penske trucks. when i left they had 45 or so local drivers (home every night) and between 5 and 10 otr drivers at any given time.

They donated the money for one of the local church's to build it's new conference etc center. It's a multimillion dollar building.

 

I talked to a trans am recruiter even he said to stay away from the lease program.

 

No doubt. You have to look at each different situation, and judge for yourself. What are you contractually liable for? Is the freight availability sufficient to support ALL of the costs including your salary? Are the financial hazards mitigated enough in the long term to make it a viable business?

If you can't answer at least these questions satisfactorily (and many more) then it's best to walk away - and that's probably true for many individuals. The failure rate for leasee's in their first year is mute testimony to this fact. What may work for one individual can be poison for another.

 

Doesn't matter what it is. In a lease purchase program, a purchase price is agreed upon,and if all terms are met in the allotted time the operator takes title and possession of the vehicle. We're not talking about leasing equipment one will never own.