Leasing vs Buying

truckervinny, companies like Penske or Ryder will lease you a truck and trailer possibly for a flat rate a month for a certain period of time, and they take care of all of the maintenance and breakdown issues usually, another guy on this post said he knew a guy that did this for 4k a month which seems like a realistic price.

So anyway I think leasing could be a viable option depending on your situation

for example someone that wants to work like 6 months out of the year, if they bought a truck they would end up paying about the same amount per month for the truck payment (maybe less depending on credit and money down), and they don't have to worry about maintenance and then when the lease period is up they give the truck back free and clear, and enjoy the time off, if they were buying the truck the would have these payments and maintenance costs year round so they really couldn't do this

but if you were to run almost all year, buying a truck would probably be a better option, you would have to pay for the maintenance but after a few years you would own the truck and not have to worry about any payments anymore making your profit margin a good bit higher.

 

That's it! Lease a job! Pay your employer for his allowing you to have a job. The Glorified Company Driver...pays for everything, yet owns nothing.

"But what's wrong with being a company driver?"

Nothing. There's not much difference between a company driver and a Glorified Company Driver except that you pay for the privilege of being glorified. It's like that special Fricassee license that Elmer needed to hunt fricassean rabbits.

 

I've leased fun cars before that I'd have no desire to own out of warranty. Think I'd probably do same if ever became an o/op.

 

The most important rule when purchasing or leasing a truck is not to lease from someone who controls your dispatch. Sooner or later you are going to be asked to take a load that you really don't want. If you say no, you will be on the wrong list which will often include sitting until you are desperate enough to take what they throw at you.

I always tell people that if you can afford to make truck payments then you can afford to save money. Save that money and put your money into a credit union account. Then apply for a loan. They are more lenient and will give you a lower interest rate. Also, make sure you know what your FICO score is. Make sure that you have established some revolving credit(yes you can) to bring up your score. Learn about debt to credit ratio too. It's important.
Don't fall into the lease scheme. It's a trap.

Going from company driver to a lease purchase is like switching handcuffs. The companies are putting all the responsibility on you with a worthless rate.

 

Leasing a car is a worse investment!

If you don't want to run your own numbers and rely on truck stop BS owning a business is not for you.

 

Most times, all people look at is the payment. "But it's only $700 a week to lease a truck, with NO money down, I can afford that", not looking at the fact that it's maybe a 5 YO truck, with 890,000 miles, and the company that's offering this "deal" also dispatches you.

 

If it is a depreciating asset, lease. If it is an appreciating asset, you buy.

Don't remember who said it, but I do know he was considerably wealthier and smarter than myself.

 

Almost all assets depreciate. And most those that shouldn't, do anyway. If you knew what assets are going to appreciate you don't need a business, let alone a trucking business.

The banks and companies that underwrite these assets, have accountants with MBA's that have it figured out to a gnats ### how to make money leasing you whatever. If they are make money it is because you are losing it.

 

.

 

Maybe that's why the larger fleets lease instead of buy. Can you even say you own the truck at all before you pay off the loan and get the title? Yes, you can give yourself whatever title you want but my opinion is no you really just control it. To me it's a business. Doesn't matter to me if you got a note on a 2016 780 or if you got the title to a 2004 Columbia. Is your truck business making good profit $$$?