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O/O's with authority ever lease new trucks?

Discussion in 'Ask An Owner Operator' started by SteveScott, Apr 19, 2018.

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  1. Apr 19, 2018 #1
    SteveScott

    SteveScott Road Train Member

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    In the process of setting up my own company with authority for OTR loads within 800 miles of home on the west coast. I know that leasing a new truck will cost a small fortune every month, but I want the full service on the truck so I don't have to worry about paying for repairs, and I believe some offer a loaner truck if you're down more than a couple days. Thinking about a 3 year lease to begin with. I have freight contracts set up that will bring in a great income and more than cover the lease and outrageous insurance costs for a new start-up. If I can come in at or under $5,000 a month I'll be in good shape.

    Have others here done this or am I the first idiot to consider it?
     
    SteveScott, Apr 19, 2018
    SteveScott, Apr 19, 2018
    #1
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  3. Apr 19, 2018 #2
    Misesian

    Misesian Road Train Member

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    On a new truck I’m paying 2400.00 month to own it. I could lease a truck from International with fleet specs for 1650 a month. By leasing I would also not have to shell out the money for down payments. What you miss out on is depreciation by owning the equipment and the ability to spec a truck for maximum efficiency. It depends on your needs and tax situation which is better.
     
    Misesian, Apr 19, 2018
    Misesian, Apr 19, 2018
    #2
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  4. Apr 19, 2018 #3
    SteveScott

    SteveScott Road Train Member

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    Are those prices for a sleeper truck? I talked to a Kenworth dealer a couple weeks ago, and he was talking $2,200 a month plus .07 per mile for a 3 to 5 year old T680 which didn't sound like much of a deal. It's my understanding that I can spec a new truck for a lease as well. At least I hope that's the case.

    I thought about the depreciation, but if I lease it 100% of the lease payments are deductible as a business expense, and I'm not dealing with a huge down payment.
     
    SteveScott, Apr 19, 2018
    SteveScott, Apr 19, 2018
    #3
  5. Apr 19, 2018 #4
    Mosinee dave

    Mosinee dave Bobtail Member

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    That's what I thought usually a base rate plus a per mile charge
     
    Mosinee dave, Apr 19, 2018
    Mosinee dave, Apr 19, 2018
    #4
  7. Apr 19, 2018 #5
    GreenPete359

    GreenPete359 Road Train Member

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    Check out your local national lease. I know the Company i used to work for started leasing from them. They spec their trucks out, ordered brand new. The boss man told me it’s cheaper for him than buying new trucks. They have 8 trucks leased right now, but as the company trucks age out they are replacing them with these leases
     
    GreenPete359, Apr 19, 2018
    GreenPete359, Apr 19, 2018
    #5
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  8. Apr 19, 2018 #6
    bryan21384

    bryan21384 Road Train Member

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    Just be careful about a lease with someone like Ryder....they can find creative ways to charge drivers and fleet owners. They will throw that "driver negligence" at you just to get a few hundred extra dollars out of you. I've heard stories of guys who have a tire blow out and get charged 900 dollars for that one tire. Everybody knows that blowouts happen, especially since this rough winter has created so many potholes
     
    bryan21384, Apr 19, 2018
    bryan21384, Apr 19, 2018
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  9. Apr 19, 2018 #7
    SteveScott

    SteveScott Road Train Member

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    I just figured the full service covered everything except tires. Didn't think of that.
     
    SteveScott, Apr 19, 2018
    SteveScott, Apr 19, 2018
    #7
  10. Apr 20, 2018 #8
    Misesian

    Misesian Road Train Member

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    Summit Truck Group is leasing brand new LTs with A26 motors, sleepers, for 1650. I don’t know what other charges or stipulations there may be. I bought my LT through Summit. International is pushing the A26 hard, and offering some good deals. I have the A26 in my truck and have been very happy with it.
     
    Misesian, Apr 20, 2018
    Misesian, Apr 20, 2018
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  11. Apr 20, 2018 #9
    SixShooterTransport

    SixShooterTransport Light Load Member

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    Check with Lone Mountain on a lease/purchase. That’s where I got my 2017 Cascadia Evolution. Still 100% deductible as a lease payment but after 60 months you own it.
     
    SixShooterTransport, Apr 20, 2018
    SixShooterTransport, Apr 20, 2018
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    SteveScott Thanks this.
  12. Apr 20, 2018 #10
    Cat sdp

    Cat sdp . .

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    Sorry but I don’t see the tax advantages of leasing....

    Either way the total cost of the truck is 100% deductible. If you own it the only difference is in what year you get to take the deduction. And the interest is deducted in the year paid.

    There may or may not be advantages to leasing but taxes not so much.
     
    Cat sdp, Apr 20, 2018
    Cat sdp, Apr 20, 2018
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