Want to avoid getting burned by a lease-purchase agreement?

Not everyone is in a position to do that, right?

There are a huge number of L/P arrangements out there, and people keep signing them. So they're all bad? Thousands of truckers have been duped and the continue to be duped daily? So companies trying to make money just keep pissing off the people with whom they contract? That strategy is somehow a path toward making money? And truckers who keep getting duped (more today, I'm sure) are all naive and making poor choices?

That's just silly. There are three main types of contractual arrangements out there, and different ones will be right for different people. Some people don't care about flexibility and don't want to worry about running a business. Some people want more flexibility at the cost of doing more business work. Some people want to take big risks to see if they can make it work entirely on their own. This can easily be win-win for both the company and the driver. That's not to say that there are no bad arrangements out there or that in hindsight drivers will never regret their decisions.

Rather that trash LP arrangements across the board, it seems to me that naysayers on this list would offer more value laying out the costs and benefits and the trade offs so that each driver is in a better position to make a choice. Part of making a decision will involve evaluating likely revenues and likely expenses, and knowing more about these factors is helpful to everyone.

 

Sorry, if you aren't in a position to get traditional financing, you have no business getting a truck, lease purchase, buy here pay here, rental, or any other scheme for bad credit no money down no effort bs.

 

Some people have the resources to finance or buy a truck but choose a true walk away lease for their first venture in running a truck on their own, I did it because of didn't want to get stuck with a truck payment if I wasn't successful. I'm sure that makes no sense to you though.

 

You're absolutely right. It makes no sense to me to get into business with the attitude that failure is an option. When I bought my first truck, nothing was going to keep me from being successful.

 

Well I'm a realist. I have already owned a real business with numerous employees that I started with nothing, so I knew how things are not always in your control. I still own the assets from that business and wasn't going to risk them on this venture

 

It's called RISK. Random outcomes. The world is full of them. Some people don't like risk, some people aren't bothered by it. Having both options --- complete ownership with the risk, and a lease with less risk --- allows people to choose according to their risk preferences.

Companies don't offer these things because they make every driver worse off. They do it because it works for some.

By your logic, either renting a house or buying one would be the best for everyone. It's not. If you take a job that might not last, you don't want the short run cost of having to sell a house right away. Every situation is different. Everyone has different risk tolerances. That's why three types of arrangements (company, lease, O/O with authority) exist.

Happy trucking.

 

Quit making so much sense. Your hurting my head.

 

It's almost funny how people will lie to themselves to justify the decision to lease purchase.

It isn't even a lease vs purchase arguement. If it was they would be talking about paccar financial or penske leasing. But they aren't cause those legitimate ways to get a truck require a down payment and decent credit history.

 

Please view my signature

 

Sorry, I don't see signatures when viewing the forum on my phone. Not sure why that is, but never cared enough to try and figure it out.