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

Then you take the used paid off truck and trade it in on another new one. Do it properly and every time you trade your payment will be less. I’ve looked into leasing, I just don’t see any financial advantages for a single truck operation.

 

Make sure you're taking about the same lease. A full service lease versus a regular lease. Full service lease you're not responsible for anything on the truck, 100% covered by the lease company/dealership. Tires, PM's, tows, service, everything.

If you go through and break down the numbers as a business, a full service lease is by far the best way to go, period. The truck is simply a tool to perform the job of the business.

Some quick math. Financing a new truck at $150,000 for 5 years at only 8% interest gets you a payment of $3,041 per month. Now take all your PM's, oil changes, the occasional blown tire ($700+ service call on the side of the road) every year, divide that by 12 and add that to the payment. You can easily reach the $3,500 for just the payment and basic maintenance. What happens in years 4 to 5 when things really start wearing out?

Now take your full service lease on that $150,000 truck with a payment in the $2100 range and add in your mileage fee of typically .06-.07 per mile for a 10,000 mile month and you're at $2800, all in. Need a set of drives or steers in year 2? All covered. Lose a turbo in year 4? Covered. After treatment takes a dump? Covered. At the end of lease, you hand them the keys and walk out with a new one.

Even if you only take the estimated cost of year 1 and add up the difference. Even on the low end, call it a $500 per month savings with the full service lease. Thats $6k per year times 5. $30k difference in your pocket. We all know you aren't going to skate by with only replacing tires and doing regular maintenance over a 5 year period. Also, for tax purpose you can only depreciate for 3 years and a very small part of the 4th year. The full service lease writes off that payment for the full 5 years. You're losing out on $33,600 in tax write off in year 5 and most of that in year 4.

At the end of the 5 year finance, you'll have paid $182,487.55 for that truck, $32,487.55 in interest. If you're lucky, that 5 year old truck with 600,000 miles will be worth $40k retail. What are they going to give you for it in trade? What that truck is worth and the interest paid evens itself out.

The full service lease paid $168,000 for 5 years and paid out $0 in maintenance, tires, service, break downs. How many sets of tires are you going to replace in 5 years? At least two full sets. Theres $7-$8k alone.

Don't count out the peace of mind knowing that if that truck takes a crap on you, it will cost you nothing to tow, repair, etc.

Anyway, thats my two cents.

 

Your cost figures are low on the lease...... and Ryder hates sole proprietors

 

Your numbers are all over the place there for maintenance. With my discount on Michelin tires (anyone can sign up for this) a full set of tires on my truck (i have super singles btw) is $4,000. Those will last almost 300k mile or just around 3 years. My cost for a full pm service out on that road is $305 with oil and filters (again something anyone can get). I just had a bypass system installed this winter and do oil samples every 30k miles (the samples are $20) and don't need to change the oil until the sample says so (maybe once a year).

At those numbers, financing a truck comes out ahead for me. Plus mine was for 4 years, not 5 and my payments are $2235 a month. Yes there was a down payment on this truck as well.

 

And if you’re prepared financially you can eliminate that problem too.

 

I heard lone mountain ####s people and it's a long process is this not true in your situation...down payment,how much u paying etc. If u dont mind

 

I haven’t had any problems at all with Lone Mountain. From my first phone call to being ready to pick up my truck it only took two or three days. I’ve got a 2017 Cascadia with a few upgrades over the fleet version. It was $12,000 down and $2,700/month for 60 months. Total paid is $174,000 after everything. If you don’t have a ton of money to put down it actually ends up being cheaper and easier to go this route rather than traditional financing.

I know two other O/Os who get their trucks from Lone Mountain, and they’ll both highly recommend them as well.

 

Ya that happened to me with a lease truck, YEARS AGO. Turns out they wanted me to bring the remains back, so they could recap or throw away if not possible. My company argued that tire had blown and was in pieces. They wanted to see the pieces. Wouldn't have been a problem today, as everybody has cell phones with cameras.