Lease Purchase

heck, after 4 months, I had saved up $4000 as a company driver.

That lease SCREAMS run away from.

If you can't manage your credit well enough to get financing even at Lone Mountain, I'd say forgo being a business owner until you can figure out your credit record. All you'll do is make a bad record WORSE.

 

I think whether or not a lease is right depends on the person. For a person who is going to live in the truck it's a great deal it would be like paying rent and utilities on the crappiest little apartment imaginable that you get a tax break to live in. Also your food and "appliances" would be tax deductible.

For those with families to care for a lease can only lead to something unfortunate.

 

I would run away unless you want to work for free. Keep driving company and saving your money for a bigger down payment for your own truck if O/O is what you want to do.

 

not to upset you or anything but your thoughts on why he cant get a loan because of bad credit and what not do not really matter these days.....I have seen guys with perfect credit get turned down by many banks and loan companies on a rig and others with crap get a loan....banks and loan companies don't like dealing with trucking as much. to them and in fact it is a high risk loan regardless of credit history. you buy a truck today at 40 grand and next week its worth 20 grand next year 10 grand yet older trucks are rising in vaule but banks don't want to go in on something old for fear you can not keep it working....as to the lease failure rate....a lot of that is scamed by the companies. a very profitable scam at that. they lease you the truck run you good for 6 months than slow you to a craw intill you default on the lease they take the truck back and lease it to the next person in line. 1 truck pays for itself 10 times over the original price....the more succesfull lease purchase programs are from outside lease companies with no ties to the company you lease onto with.

 

that is why you never get a truck from the same place you get your loads....

And never get your loads from the same place you get your loads.


The two just do NOT mix together.

 

Now to the OP....

First info on what kinda of truck you would be getting would possible change some minds, however given the info as of now. I would say heck no.
payments are alittle high for a lease.
the insurance is double what I pay.
Plates are way high...my plates just came in. 1523 plus 521 highway use tax....
maintance account could be ok depending on the terms of use. I have heard of these companies requiring their shops do the work not a shop of your choosing. this way they can charge you twice as much in labor and parts and leave you owing them more money still.

so all in all I would say no. Keep looking around. save up some cash maybe even find a cheap truck nurse it through a year or so and keep saving all you can to buy what you want...best of luck in your goals though
1500 each year escrow is out of control. I could see 1500 escrow account but each year. sounds like a theif in you pocket to me

 

when I spoke of traditional financing I was not speaking about banks, they won't touch a commercial truck unless you have a hundred grand in equity in your home, and even then usually not. I thought it was a given I was speaking about traditional truck finance companies, daimlerchrysler and paccar being the biggest. most used dealers also have a list of 2nd tier options when the big guys turn you down. I stand by my statement that if you can't get a loan for a truck through a traditional truck finance company, there is a reason why. these companies only make money when they approve loans, therefore, they have a very high incentive to lend money on trucks and only say no when there is greater than acceptable risk.

 

To the OP< The information is lacking for what they offer for revenue and miles but with the expenses due you reported in the first post that sounds very high.

If you have your heart set on doing this I would shop around for something better since by my basic math you would be broke even with good paying loads.

 

With plates, it depends on the state. Wisconsin has a higher rate than many other states. Your HHVUT (2290) is $550 per year. The insurance seems a bit high.

It really would help to know the year on the truck and what kind of revenue you are looking at.

You have to take your fuel costs into account as well. IFTA should run about $50 per quarter or so, anything over the amount that is actually due better come back to you.

Trukenbuzz, your $600 a week even seems a bit high, and the 67% looks a bit low.