Lease new vs buy old?

I came to the same conclusion a while back Oscar. Any given year since 2009 it was either good to me or not. What is that saying? "The truck pays you the first 600,000-700,000 miles then you will pay it!". I know in my own circumstance I could have just as easily put money down on brand new back in 2009 and come out about a wash payments versus keeping an older one going. That said, hindsight is always 20/20. I didn't know then what I know now about the business side of things as I was a rookie o/o who didn't even know if i'd last a year or not. If I was green, just becoming an owner operator for the first time, I would do exactly as I did and buy a used truck for cash. Looking to the future - with the benefit of hard earned experience and knowing what's out here, how much risk I can handle - I will never buy another used tractor.

 

There's a learning curve to becoming an o/o no matter how well prepared you think you are. Cash in the bank and lower overhead costs make the bumps hurt a little less.

 

I agree and disagree at the same time. IF a new O/O does enough research and arms themselves with every ounce of information that they can absorb, they can skip the things that you and I and many others have learned the hard way. In the end though, it all comes down to how much financial risk someone is willing to take.

 

I am not going to side with old truck vs new as they both have their good and bad, BUT, If you do decide to lease, make SURE you use realistic numbers.

IOW don't skimp on the mileage you think you will run in a year as it is the single largest determing factor of your payment cost.

After 20 years of owning everything I leased (short term) a tractor last year, we simple run too many miles to make it work.

Good luck either way.

 

The only trouble is you can only learn so much by reading and hearing what others were able to do. A potential operator doesn't know if he can get out here and make until they try it. For every 1 that can you've got 10 failures and naysayers who couldn't cut it. That payment can be an albatross for a guy that isn't sure what's out here, what he can make. Let's put it this way. If you're facing a $2,000+ monthly payment and you as a green o/o just bought that new truck and are facing recession/market correction 2015 (which, to hear guys who survived it sort of feels like correction 2008 -) you are going to feel the pressure to roll. I know someone in that exact position right now. And not having any idea what you can do out here, these brokers (if that is your biggest source of freight) will bowl you over in short order and have you working hard for peanuts. And you'll do it too out of fear. Honestly I could even see myself having some concerns about park versus roll in the here and now if I had that payment. I could deal with it and get by but it sure would have been easier in say 2012 or 2013 than it is here and now in 2015 with the economic situation we're all facing.

 

I bought my truck for 10 k I put a lot of work amazing truck no holes nothing just keep maintaining out about 7 k in maintained and jewelery . Truck is all custom now

 

Don't get me wrong, I'm not suggesting that a new O/O go out and buy a new truck with a big payment, I didn't do it, and would advise against it without knowing the person. But, if someone has a sound business mind, and refuses to take no for an answer it could be done with good results. Most people in this business or any other fail because they lack the ability to manage, not just money but themselves and others as well. And far to many people give up when things get tough, its always easy to just quit and make excuses than to find a solution and fight.

$2000 payment is no joking matter, for a new O/O or a seasoned one. And I don't think its fair to compare 2015 to 2008/2009. Things were a whole lot worse then, than they are now. The three years previous to this year sure spoiled a lot of us, this year really isn't that bad considering.

 

I will never buy a new truck. Waste of money. My advice is wait until the speed limiter rule comes out if you can. But if you can't wait, get something that was built before 1995.

 

rockstar

Depends on your personal/financial situation and what you intend to use the truck for. Also depends on what you can get for your money whether new or used.

The more miles you plan to run and the further from your home base you plan to get will favor new/newer.

If you are staying closer to home and/or running fewer miles I might lean toward used.

 

For a detailed discussion of the cost/benefit of a new glider vs an old truck, see doubleyellow's thread. There's plenty of math there to back up the opinions. I don't know how buying vs leasing will compare for OP, but the large payment concept is the same.

The TLDR: It's nearly a wash. Maintenance is expensive, so is interest.
The new truck might work better for a guy who's running like a scalded cat.
The old truck works for someone who wants more time off without a payment over his head.