Becoming a “team owner operator” questions.

Hey everyone, I had a couple questions about doing this before I just jump into it.

We have a job offer from a company that is offering a lease purchase. Here’s the terms and conditions
-2016 freightliner cascadia with 250-350k miles(old prime trucks)
-2600 a month in truck payment
- we get 75%of load
-we use their reefer trailer(small company so everything would be live load/unload)
-we pay a portion of liability
-we pay fuel, but get discounts
-self dispatch, and we negotiate our own rates
-no factoring, company pays each Friday based upon what paperwork was submitted that Monday
-they pay for plates, permits, etc.
-we pay a portion for using loadboards(DAT,Truckstop etc.)


OR

We can finance a decent older truck, let’s say we put a down payment on a truck that has 300-400k miles.
Sign onto someone like loanstar and make 65% but deal with majority of drop and hook since we are a team.

What do you think our best option is? Lease purchase with one company, or finance our own truck and lease onto a different carrier who could provide better discounts etc?

Thank you!

 

Forgot to add, only a 100 dollar balloon payment at the end of the lease

 

Save up for a decent down payment and buy yourself a brand new truck.
You need it especially because you are a team.
Forget about lease purchase and forget about 300-400k trucks with 50k miles oil changes interval

 

But is going into debt with a 100k+loan really the way to start it off?

 

In this business yes. Repairs and downtime on a used truck is killing. Running a 400k miles truck will cost you more every month vs running a new truck.
Or you can buy an older pre-emission truck, for let's say 30k, a nice 2001 Volvo 770, put another $30k in it and for $60k you will have a good reliable truck and no debt

 

Just because 12,743,457 lease purchase operators have failed before you does not mean you will.

 

How many payments do you have to make?

 

How many years at 2600 a month?

 

Here's a couple of team jobs with UPS; one for company drivers and one for owner-operators.
Company teams > click here > Apply On Company Site
O/O teams > click here > Apply On Company Site

 

1.5

 

One-1.5 they want us to pay it off as quick as possible so the truck can be ours