Reasons Not to Lease?

Why not just go down to the local Mc Donalds and tell the owner you will make his payments for him if he hires you? Throw in that you dont need any benefits like health dental vision or retirement and only need a 25% chance to make a few pennies more than a regular employee with a full benefit package? You would be home every night and nobody could tell from looking at you that you are a moron driving a leased Mc Donalds restaurant.

 

LOL not even the restraunt. Fleasing a truck is like leasing your side of the grill at McDonalds.

 

My last job of 11 years delivering Saab Auto Parts to dealerships throughout NE. I was a company driver... another driver did the lease thing... The company leased the trucks from Penske and in turn gave the driver the same price... That came out of his check... we had fuel cards... that would come out of his check minus FSC that was based on some national avg. His check was a couple of hundred dollars more that mine, take home... That was after my taxes and medical payment taken out... I had 5 paid sick days.... him none... I had 2 weeks paid vacation... him none... the employer had to pay the same amount as me to Soc. Sec. ... He had to pay both parts... They were always pestering me to go "O/O' ... I would always decline... I was hired as a company driver and that was how I was staying... he saw what he thought were big dollar signs... he wanted the title "O/O"... I saw his paychecks... I know how it worked in this particular instance... plus he had to buy his own truck ins... no thank you very much...

 

Well you never know. That might work out pretty well in your situation. Sure hope it does. The best of luck and stay safe.

 

Now there's a reason not to lease, lease-purchase, or buy a truck...

 

please please ,if you have not been driving at least 2 years dont even think about leasing a truck or becoming a o/o. doing a lease purchase is basically being a sharecropper!! the reason these companies want you to be an independant contractor is to put all the burden on you ,taxes ,fuel ,ect! you can be sure they will take there money out before you see a dime! like using drugs,JUST SAY NO!!!

 

To add another point if you lease you'll generally overpay for the truck. From the two lease agreements I've seen the drivers ended up paying a 15-20% annual interest rate.

If you can't get a better rate than that from a bank then you don't have the money management skills to run a business.

 

I get mad that these companies are trying to get people new to the buisness to buy a piece of expensive equiptment that they dont even know basic operation of. one question i ask people when they say they want to buy atruck is "how many spark plugs does the average diesel engine have" if you cant answer that question for gods sake dont go signing for a $100,000 piece of equiptment!!!

 

Uhhhh... Is that a trick question....

 

no its a common sense question to someone who is going to buy an expensive piece of equiptment! you had better learn how to do some work on your truck and know how it operates or you will go broke quick!