Anyone who wants to drive for JCT plz read thanks

IF the company were to shut down, what is the difference between being a company driver and a lease driver? You can get screwed bad by a company folding. I work for a company that's hanging on by a thread right now. As for paying more in interest for a used truck than a new truck. That is entirely typical. If you go buy a car at a dealership, you can get these really low interest rates on a new car, but you will usually pay more for a used car. As I said, I don't look at the lease programs as being a way to purchase a truck. I look at them as a glorified company driver with perks. It's simply a way to possibly make more money. If I can run smart, why should the company profit? Someone who is able to make the truck make money can make good money on a lease program. There are people who will lose out. And it really doesn't matter how good the lease is. There are company drivers that will fail miserably. It doesn't necassarily have anything to do with the company.

 

There would be no difference for company or lease driver if company shuts down and I was not making that comparison. What I was saying is, if I am leasing a truck from XYZ Trucking company in their "lease purchase" program and XYZ closes their doors, the truck still belongs to XYZ though I have been leasing it because only their name is on the title and registration. It is an asset of the company that will be sold by the creditors to liquidate the company debt. I am now out of a job AND the truck that I have been paying on. If I own (or are buying) my truck through an outside lender (thus my name will show on the title and registration with the lender being the lien holder) and leasing it on to XYZ and XYZ closes, I am out of a job but I still have my truck that I have been paying money on to take to a new carrier. Now, if the lender I have my truck financed through hits rough times, they cannot take possession of my truck (because my name is also on the title and registration) because it is technically not theirs when a purchase agreement is signed. Instead, they sell the note on the truck to liquidate their debt. BIG DIFFERENCE.

 

Question, How much will it cost you to run the truck for the whole term of the lease? And what are your weekly deductions?
What is your fuel cost so far?
What is your Maintenence cost for the term of the lease?
And; What type of lease did you sign?
What is the $234.00 deduction for?

 

Also you never mentioned the $pay$???????
How much a mile?
All you said was they run to California, Who the heck wants to run to California?

 

A million miles???? Yeah but what about the parts?? I tell a salesman that every time they try to sell me that garbage, These trucks are good for a million miles......Oh Yeah, then why the hell didn't the company keep it then? hummmmm
Oh, because they don't want to spend a lot of money replacing parts.

 

Now, here is my take on these lease programs. If I can make .05 per mile more by leasing than being a company driver, why shouldn't I? It's not about owning the truck, or how much money I'm going to lose (on paper, mind you), it's all about how much money winds up in my pocket. Say you drive as a company driver for five years. Average pay is $50k. That is $250k that I've made. Now I drive a lease program truck. I make $55k per year after everything. Plus I have a truck that's worth $30k. That means I've come out ahead of the company driver by $55k. A full year's wages! In that scenario, who is really getting screwed more? The company driver, who made all the money for the company, or the lease driver, who got to get a little bit of that pie back. Don't get me wrong. I don't expect every lease program to come out ahead. There are many things that are going to change those numbers. A lease driver is nothing more than a glorified company driver. And to me, I want to take as much of that pie home as I can. Even if they charged a "payment" of $7500. If I could take more home, it really doesn't matter, does it? If I started a company paying something like $14 per mile to my lease drivers, and charged them some insane payment, how many people would jump on it? You play with the numbers, and get people to chase it. That's all these lease programs are. It's not a scam. The company is figuring out how to balance it out so they make as much as they can and still try to keep drivers happy. There is a way to make money on every lease program. The perfect program is where the driver and the company make money. It's that simple.[/quote]

GrizzlyMan, I agree with you .Leasing is not always bad.Whats bad is when you lease with a company because it limits you to what you can make.Most of these companies pay .91 to .93 cents.That is a joke.Why would anybody pull for that.You can lease a truck from almost any major dealership and take the truck to anywhere you like and make a lot more money.And still be able to take advantage of the wonderful tax advantages a lease purchase has to offer..Plus have pretty darn good warranties to boot.A lease purchase company is nothing but a middle man that sees your money before you do and takes there cut before you get it.So before you get paid it adds just yet another place for your money to go before it gets to you.

 

Actually, between now and the end of the year is a great time to BUY not lease a truck from what the experts are saying. As a part of the economic stimulus package you can write off the entire expense on this year's taxes. Could equate to a sizeable refund next year.

 

If you think you are going to get a better interest rate than 8.5% on a truck note with ANY credit level, you are dreaming. With you being a first time truck buyer you will be lucky to do better than 10-12%.

MOST traditional banks won't touch a note on a truck. The only chance you may have going that direction is at a credit union which you have been a long time customer, have a 750+ credit score, and at least 20% down payment.

I own a company and have 16 company owned trucks. I trade every 4 years on solo trucks and 2 years on team trucks. I buy an average of 5 new trucks a year. I put normally 50-60% down on each truck. I have a credit score near 800. I am barely able to beat that 8.5% rate that you think is high.

As for the truck being used; The first 100,000 miles you put on a truck's odometer is always the worst. It takes that long to break it in, work out the bugs and glitches, and start getting optimum fuel mileage. If I were a single truck owner operator, I would never buy new. I would be looking at 1-2 year old trucks with 150,000-300,000 miles on them.

 

GrizzlyMan, I agree with you .Leasing is not always bad.Whats bad is when you lease with a company because it limits you to what you can make.Most of these companies pay .91 to .93 cents.That is a joke.Why would anybody pull for that.You can lease a truck from almost any major dealership and take the truck to anywhere you like and make a lot more money.And still be able to take advantage of the wonderful tax advantages a lease purchase has to offer..Plus have pretty darn good warranties to boot.A lease purchase company is nothing but a middle man that sees your money before you do and takes there cut before you get it.So before you get paid it adds just yet another place for your money to go before it gets to you.[/quote]

Since the lease in question in this thread(JCT) has a $1 buyout at the end, it is not a lease as defined by the IRS for purposes of taxes. It must be depreciated. In order for a truck "lease" to qualify as a lease in the eyes of the IRS it must have a buyout at the end that is within 20% either way of CURRENT FAIR MARKET VALUE. Before any of you guys that are brainwashed tell me that I am wrong, I suggest that you find the proof in the IRS code to back it up. If you can do that, I will eat my foot.

 

That is the mile range I am looking. I just don't want to be forced to drive for one company for five years if they show problems in a year or two. If I buy my own and lease it on, I can take it elsewhere if need be.