Lease purchase

Kind of the whole point save your money and be a company driver instead of getting ripped off,240,000 for a freightliner what a joke.btw I only put 5,000 down on a 50,000 truck far less then 20

 

Well... he stated he didn't want a loan... he wanted to know about the lease. So I answered his question. As for Quality Companies... they are a good place from all I've heard and researched. It's a walk-away lease and like I posted... a 2015 Pete 579 will only be $159,901 total. So... that's close if not identical to a loan on the same truck. And while there's nothing wrong with a 2008/09/10 or whatever you have... at $50K with 10% down... he wanted a lease. So I was trying to answer his question, not dash his plans. Have a good night!

OH.... BTW.... I've been a company driver for almost 20 years. And it's easier said than done to save when you have bills, family, farm and other things that happen.... called life. So... even though it's a great idea, and is doable, it's not an option sometimes. So why would it be wrong to look at alternatives? Anyway... to each their own.........

 

I hear ya but if you can't save money for a down payment what makes you think you can do a l/p and be farther ahead?

 

I didn't really say I was leasing... who knows though... I may. One never knows. But a simple answer to that is.... from all I've read and researched and studied for the last few years, as an L/P or O/O as well, one should average $1000 to $1500 a week bring home. And that's better than what I've made the last 3 years, which is $40K a year gross. Common sense tells me if you have a good head on your shoulders and are a little business savvy, then $1000 net a week is much better than let's say... $650, and one would be able to actually save for a truck. But... why not LEASE to PURCHASE to get to that stage if need be? One must be goal oriented and focused, but starting with a L/P isn't a bad idea IF all your t's are crossed and i's dotted.....

 

Keep in mind...that 1-1.5k "take home" does not allow for anything put aside for taxes. Most of the drivers going the L/P "deals" get themselves into trouble in the first year (by the second quarter actually)....that "big money" each week can sure buy a lot of toys and chrome! My "take home" is right at 1k....I'm company driver, and all my taxes are before take home...not to mention my annual refund!

 

Actually, I should have specified that that total is with every expense out including a 15% for taxes. As I've investigated this out over several years (thinking all the while I could have been MAKING this money instead of just researching it - LOL), and looking at actual settlement statements from several drivers who sent them to me, here's the actual breakdown. With at least 4 statements from these drivers from 4 different companies, their average NET income totals = $1485.15. Then with the average 15% tax payment out of $222.77, leaves for your personal home use = $1262.38. So... even if the low end is $1000 to the house as your company pay is... the truth of taxable savings isn't comparable of course. If the L/P or O/O has any business sense, or utilizes a company/person who does, they will come out ahead of us company guys ... on paper of course. Life happens needless to say, but one cannot live their lives on fear... we must keep on keeping on and deal with what life throws us!

 

You are citing 4 that have shown you specific statements....not all statements I will assume. My question: If this were true, your "theory" based on "research"....why is it that over 70% fail in their lease before the end of the lease? My "casual research" has shown me that these "drivers" last out the first year and maybe two, then lose their "fascination" with the $$$ and realize they have to "marry the truck" and put their personal fun life aside and actually work to make a success. This realization is counter to the "rich life" they envisioned for themselves in the first months or years of the process.

Many, get clobbered with that first or second major breakdown, coupled with the expense and the now extra work of catching up...get demoralized with the realities of what it takes to get ahead in this industry. Unless they come into the game with knowledge and experience of what can and will happen, and are prepared for the wild ride.....they go back to what this society has taught them....give up and feel sorry for yourself, something else will come along and then they just disappear.

 

Boy... you're a sarcastic and a "glass half empty" type of hand aren't you? You'll probably retort with... "No, I'm realistic". Well... one could argue that point!

I, on the other hand, try to live by the Golden Rule and be optimistic not pessimistic. And, use reality and yes... the TRUTH!!!! How dare you accuse me of lying!!! And that's exactly what you did...You said, and I quote, "If this were true, your "theory" based on "research"....". You haven't a clue, do you? It's NOT theory, and yes... it IS research. What? You have something against a studied decision? Man o' man!!

Would you like me to shoot you the statements I "lied" about? On second thought... I don't need to defend myself to someone like you or anyone else that has an attitude of defeatism and sarcasm.

But I will ask you a question... have you EVER been an O/O or L/P? I have! And now a company driver for 18 years. Again... IF, and I say IF, one goes into it and leases onto the RIGHT company (one who does NOT own the truck and you), understands the ups and downs and the what-if's, has good business sense and are goal oriented, and realistic... one could (and probably will) make it.

Oh well.... enough of this thread.....

 

Yeah but... every single point you made in that post applies to every new business owner from truckers to lemonade stands. The person who goes into it with the correct business model succeeds, the person who doesn't fails.

I don't take sides on this debate. I can see where the right lease with the right company could work well. I can also see advantages to finance. Obviously, cash is king. Always has been, always will be. But you can lose a cash investment too...still money out the window.

 

Yup Arky, that's right.

I'll give you an example. (This is only an example)... Quality Companies has a 2015 Peterbilt 579. I actually drive this exact truck at present, and love it! Anyway... traditional finance vs. leasing this with Qual. Co. Here's the numbers... and are subjective to variables of course......

TRADITIONAL...
Price: $135,000.00 (this is low actually)
Interest: 5% (this is low too...)
ZERO down
Term: 5 years (60 months)
Monthly = $2547.62
** If the Interest Rate one gets is 7%, then the monthly goes up to $2673.16, which is more than the lease!)

LEASE thru Qual. Co.
ZERO down
Term: 5 years (60 months -- 260 weeks)
Weekly Lease = $615.49 (avg of $2667.12 per month)
Buyout = $1.00

So... comparing apples to apples... it's darn close. It depends on the Leasing Company, the Company you are going with, etc...

Anyway... thus, the research and my running of What-If analysis'