Lease Observation vs Buying your own.

You can purchase the truck you just leased from them for a residual / balloon payment.

I'm not a Prime fan by any stretch of the imagination.

But as long as you're appalled by the prospect of leasing, especially a brand new truck, I ask that you do some research and find out what a brand new truck will cost you to purchase.

Down payment, and payments. New driver 0 experience.

Please respond with your findings.

 

Biggest issue with lease is the company can cancel the lease at any time. Drivers will say oh they won't do that blah blah blah. Maybe they will maybe they won't. Are you willing to take that risk?

 

@Gypsy27 - You'll find valuable insight by talking specifically to a CPA who works with both types of drivers. I'm in UT as well and know there are some great accountants who specialize in trucking and who see the other side of the equation, which is how profitable each decision is over what period of time. There may also be some business expenses you would fail to consider by choosing one over the other.

A good CPA will help you set up right and would help you make a smart business decision when it comes time for you.

 

What do people think a lease purchase is but a rental with a commitment?

My god people want something for nothing?

Try telling the bank or lender that your payment is late because you didn't work, they want their payment first before you buying food. The same holds with a lease.

The payment is your only concern to make, either with a lease payment or a loan payment.

 

We're not even getting to the tax issues yet.

Step by step.

 

Forget leasing with Prime, or any other Mega. It isn't a good lease.

Most lease because they cannot yet buy.
A full service lease on a truck is a pretty good deal. Even if you have a flat tire. They take care of it.

 

if you find all the information you think you need, there are other resources for leasing a truck and maybe even a trailer, and that is thru Penske and Ryder, and a few other companies.

now here too, you will be totally responsible for those payments. you can also get a service contract thru them, and the network of thier repairs shops is (i do believe) all across the USA.

thier payments "may be" higher than from a mega carrier. you cannot walk out of a lease that easily as well, as there will be penalties to pay.

now comes an important part, "who are you going to "lease on with" regarding getting your loads..???

right now, as i have read your posting, you are either NOT in CDL school yet, or are at least part way thru.

the BEST advice (if you really wanted any to begin with ), is to become an ordinary company driver for at the very least 1 to 3 years. you may find that either you like the job, or you LOVE the job, or you hate it with so much passion, you wanna wish you were never a CDL holder.

THEN, after being an "ordinary driver", and HOPEFULLY you banked some money, make your decisions then, based on what you SHOULD HAVE LEARNED as a company driver.

personally , i have ALWAYS been a company driver, these past 40 + years now, and i have NO REGRETS in being a company driver. my "off time, is MY TIME", and i ain't changing oil, lubing, fixing or washing/waxing ANYONE'S truck, but instead MY PERSONAL vehicle(s)..

you really NEED to consider the upsides and DOWNSIDES of truck leasing and ownership.

what WORKS for some of the members HERE, may very well NOT work out for you.

good luck, i wish you well.

 

"Leasing plans" have often been referred to as nothing more than "renting and maintaining" a key tool to do a job, the same tool that other outfits will let have for nothing. Any CPM leasing option must be looked at with a high degree of skepticism.

 

But it should also be noted that buying (investing) in a quality used or new truck and leasing to a company with a lousy CPM or percentage contract is dumb too