Fined for running over 3000 miles

I'm not an owner operator (yet) but have been looking into it. The reason you are getting penalized is because (if it works like swifts lease) you are driving more than a certain amount of miles. The lease is built on the fact that if you drive x amount of miles for x amount of years the truck will still be worth x amount of dollars when you trade it in.

Most leases have a balloon payment at the end IF you want to purchase the truck. Lets say the balloon payment is 30,000. At the end of your lease whatever they charged you for overage should be subtracted. so if they charged you an extra 10,000 during the lease then you should be able to apply the 10,000 towards the 30,000 and only have to finance 20,000.

The overage (fine as your company calls it) should be kept in some kind of escrow account so if you decide to purchase after the lease then you have it applied. If you decide not to buy it then that money goes to the company who leased you the truck (for depreciation).

The idea behind this is to prevent someone from putting tons of miles and the truck not being worth anything at the end of the lease.

hope this helps

 

Yep... I looked into it once. My payment would have been about $650/wk on a truck that cost about 100,000 brand new..

Lets look at this.

$650/wk for 156 weeks (3 years) = 101,400
Balloon payment after 3 years 35,000
Total cost for me to purchase the truck = 136,400

NOT A GOOD IDEA!!!

I am planning on becoming an owner operator at some point, but if I'm going to purchase a truck its going to be with a loan through a bank... not a lease AND its going to be a used truck. Something that has about 400k miles on it (just gettin broke in) and spend about $50,000 to $65,000 for it.

 

PLEASE FIRE ME!! Ran a whopping 800 miles in the last week, TEAM! Please oh please FIRE ME.

 

Wow thats crazy.. You coulda drove more miles in reverse as a team than that. FIRE HIM FIRE HIM they deserve better for sure. But i read a post on here abuute a month ago about a pumpkin trucker getting a whole 83 miles so i guess in aint the end of the world ..... Its #### close though

 

unless your outright buying a truck or financing at a good rate, leasing on seems like a bad deal. Leasing a truck from the company your working for appears to only benifit the company? Am I wrong here?
Dan

 

see america....... drive for free...


(fine print) literally for free... we won't pay you and you may owe us before your done...