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

Can anybody tell me if leasing a truck is a better option now than 5 or 6 years ago, I'm thinking to lease a truck but after reading all these posts it seems a very bad idea, I've done some research but truck companies don't say too much about it, drivers in you tube are split 50/50 about lease purchase. Thanks

 

Leasing a trick from a third party is different that a lease from a carrier. Which are you asking about?

 

I've researched carriers like Prime, Schneider, Dart, Kllm, Will trans, etc..I haven't done third parties, it's first time I'm trying to do this and basically being new or first timer has brought a desadvantage I'm trying to overcome. .

 

yes but did they put it on your dac or credit report that u didn't finish the lease?

 

both

 

true enough. I'm a first timer in lease/purchase as well. I been looking at them for 3 years and still haven't found one that I am "excited" about. they all seem kinda shady but with my credit score not much I can do about that for at least 2 more years.

 

UPDATE ON THIS:
Lone Mountain ( required 2500-3500 down)
John Christner trucking ( 0 down and 0 for first 2 weeks then large payment)
quality carriers ( Owned by Celadon) 0 down and 0 for first 17 days then payments begin.
transport America ( 1 year with company before they will even consider you to lease with them
werner enterprises ( 90 days with company then must be willing to team in order to lease with them

 

it all depends on your situation. if you have a family and need a lot of hometime then don't lease or be willing to give up your family to the road. I know a lot of O/O and a couple of L/P ops. they all have told me the same thing. if you have a family try to find a local route. if not then buy a truck and enjoy the road your choice.

that last quote is what u need to live by. TIS YOUR CHOICE. make the best one that suits your needs/wants.

personally I have a family and I am going to buy a truck too. and I'm not sacrificing anything period.

 

Wolf, i would like to make the distinction between lone mountain finance and those carrier programs you mentioned. They are very different. Lone mountain is a truck dealer that does their own financing. Think of them as a lender for b credit. They don't care what you do with the truck as long as you keep it insured and make the monthly payment, just like a bank loan. Lease purchase through a carrier is very different.

 

Whether you lease or buy with conventional financing, you need to sit down with a spreadsheet and look at ALL the costs. Your payment is only part of what you will pay each month. In addition to the lease or payment you will also need comprehensive insurance if it is financed. That covers the lender should the truck be damaged or stolen. Typically, this type of insurance is based upon the value and most charge from about 3 1/2-4 1/2% of the stated value of the equipment. So, the more the truck is worth, the higher your insurance premium. Most carriers require lease operators to contribute to a maintenance fund to take care of repairs. Some carrier restrict how you can withdraw those funds. Some carriers will not give the maintenance money to you once the lease is completed. This is dishonest. If you contribute to maintenance fund, pay off the truck and have money in a maintenance account, it should belong to you, not the carrier from whom you leased the truck. In fact, it should be illegal for any carrier who leases trucks to keep your maintenance money once the truck is paid off. Some carriers will use whatever is left in the maintenance account to pay for a balloon payment at the end of your lease.

You need to know everything you will need to pay out each month. You also need to know what the carrier pays and the average mile you will be able to drive each week, so that you can budget for your truck. There are still some carriers who only pay a little over $1/mile plus fsc. That is not enough to pay everything and still have money left to live. Some carrier throw a lot of big numbers around. They may say that you can earn $3,000/week as a lease operator. But, if you have to run 2,500 or 3,000 miles to make $3,000, then you won't make any money. Remember, you will have other expenses, such as fuel, insurance, etc.,

If you are interested in buying or leasing a truck, you can go to the OOIDA website and download their spreadsheet to see how you might do with a carrier.