L/P older equipment?

well, whatever......never rented one myself, so I couldn't say.

However, at the end of the day, you have to ask yourself, "What is my motivation. Why do I want to do this?"
If it's to help a guy get his own truck and continue on with you, that's one thing.
If it's to nickle and dime him at every chance, well, that's another.

Good luck. You seem like a good, thoughtful person.

 

yeah, could be another element in your business plan too........or it could be a really bad idea. Trucking seems to swing towards the extremes for some odd reason.

 

Did he try getting a loan for the truck?

 

Basically you are offering an owner finance to the driver. That's very cool and generous of you. I can't vote your poll because my motivation for an L/P is about a safety net in the warrantee ... didn't work out for me because the warrantee was bogus which is not relevant to your question...But if I wanted to buy a truck for only $25K I would just save up and pay cash.

 

Does he dispatch himself now or do you dispatch him? If you do, what experience does he have that shoes he can do it himself? Same with managing the maintenance schedule on a truck.

You're not selling him a truck. You're setting him up in a business. Does he have any business knowledge? And your number one red flag is short on cash.

Contrary to TTR canon, the reason most people fail at leasing is lack of business knowledge and under capitalization. Your guy sounds like he's already half way there.

 

Here's the other thing your doing this from a retention stand point. If I recall you're leased on to an operation paying you 90%. Once he is has the truck, expect him to lease on directly to your carrier, as he should.

Number one reason, I decided to not start a fleet. The kind of drivers I would want to hire, would be the ones smart enough to figure how to do it for themselves and not stick around.

 

You will learn all warranties are bogus. Even new truck warranties are barely width the paper they are printed on.