Credits no good, this is why people are tempted to do lease purchase

Discussion in 'Lease Purchase Trucking Forum' started by thelinedriver, Dec 24, 2017.

  1. thelinedriver

    thelinedriver Bobtail Member

    Dec 24, 2017
    I am currently going on my 2nd year OTR as a company driver, and I have been talking to a lot of people who lease purchase. I think the main reason for most of them is that when they got into to trucking they where very poor with no credit, and no hopes their credit would ever be any good.
    I dont have good credit myself I never had good credit, no reason for it either other than the fact I was born poor.
    Just when I started to improve my credit score, the Equafax hack happened , now my credit is null , as in no information.
    So I was thinking of a no credit check situation for a lease purchase,out of desperation? maybe?
    I hear a lot of good things from other drivers about it, some of the guys really seem to excel, and others seem to fail miserably.
    I think the differences is that the ones who seem to do really good probably live in their truck have no home expenses and they are single. The ones who dont succeed at it are the ones who are married and or have expenses beyond that of the truck. I dont know if either of those are true, but they could be.
    The reason I think of it as an option is if I started as a lease purchase operator I would kind of be under the wings of a big company,and I would feel safe there.Maybe? I dont know for sure. I would love to meet some one who is like me married and has expenses at home, wife doesnt work, she just has crafts and stuff she does.
    But if there is some one who has a wife or husband who stays home and they have other expenses besides the truck and they can still manage the truck and the house payments. Its kind of scary to jump in on something like this, but it is also tempting because you hear of drivers making 2 0r 3 k a week. is anything you hear true?
    bigbyrc Thanks this.
  2. scythe08

    scythe08 Road Train Member

    Mar 19, 2007
    Phoenix, AZ
    Your credit has zero to do with you being poor.Before you even think of leasing, how much cash do you have saved up?
    Do you know how to figure out how much, per mile, it costs to operate a truck? This is before you even pay yourself. If you have no money n the bank and don't know how to figure out your cost of operation, you shouldn't even consider a lease. That 2-3k a week doesn't mean crap when you have a $1000 a week truck note, $1200-1600 a week in fuel purchases, then add in plates, escrow, permits, and what not.

    Not to mention you can buy a used truck for 30k and a trailer for 10k, he'll Schneider is practically giving them away, and then you can run under your own authority, negotiating your own rates, instead of a company stooge deciding how hard he wants to run you.

    Bring a successful O/O isnt about running more miles for more revenue. It'd about about getting the maximum amount of revenue per per mile driven. More miles driven means more fuel consumed, more services and preventive maintenance, more chances of break downs, ect
  3. Justrucking2

    Justrucking2 Road Train Member

    Sep 12, 2017
    Plymouth MI
    Get your credit squared away, there are outfits that can help. Then save a few bucks and look for an older truck with a fresh in frame. Stay away from anything with an EGR valve or DPF. Look at something older than a 2002. Find one in good shape and fix it to your liking as you drive and make money. My buddy just found one like that for $14,000 and they financed it for him. So far, he has had to do some minor exhaust work, an AC compressor and belt and some minor brake work. Been a good truck overall. Better than my 2008 ProStar.
    tinytim and thelinedriver Thank this.
  4. TallJoe

    TallJoe Road Train Member

    Apr 12, 2016
    Clearing 2-3K a week = Over 100K a year on a lease-purchase? No. Those companies are ruthless and will chew you and spit you out as soon as you stop making the lease payments. I'd rather try and get a job for Walmart or XPO.
  5. nightgunner

    nightgunner Road Train Member

    Jul 23, 2013
    Cedar Rapids, IA
    I myself have successfully completed a LP in 2014 on a dare (someone said it couldn't be done, I proved him wrong). That being said, I do not endorse them. Not to be a jerk about it, but if someone cannot manage their money when they have little, they will not do any better when they have more.
    I concur with the purchase an inexpensive pre-emission truck and do your thing. I have a 2002 Classic that I paid $20k for this last summer. It is nearly paid off now and I am buying a second for an employee to drive.
    Don't fall for the hype that a brand new truck with no money down will make you a successful O/O. It will make you dependent on the company with a potentially very bleak future. But if you don't believe us, go, sign a lease, and have your "freedom" to pull cheap freight at a crappy percentage and think you are doing great because you have a deposit of $1,500.
    Bean Jr., drvrtech77, tinytim and 6 others Thank this.
  6. Dave_in_AZ

    Dave_in_AZ Road Train Member

    May 4, 2015
  7. Bigrayon

    Bigrayon Road Train Member

    Aug 16, 2015
    Well I have a wife home that take care of our 6 daughter's, no she doesn't work and yes I have a home and car payment and the rest of bills like everyone else does, leasing is not for everyone, yes my credit is not perfect, but I can still finance a truck if I must, I lease my from quality because it was like taking candy from a baby, know it does cost more this way, if you are poor it's your choice and on only you can fix that, I came to this country at age 14 by age 24 I lay out my money and purchase my first truck, there guys out here talking about when one comes to this country the government give them a free truck I am waiting on mind, the biggest problem with guys leasing a truck other than it cost more is wear you lease on to and from who you lease the truck from, the next thing is most of theses guys park the truck at the shoe shine as in the Palish man, they must be able to see there ugly face in the rims and for get they have there weekly payments to be made, you can make it with a lease truck but if you come out here thinking and running it like you are a company driver you will not make it, you can not and will not make it working for 1.35 a mile, it will not work. You will need to learn the business first then talk about it, you must know what you are doing as you said go under a big company and that will make you safe yes and no the big fish will do what to the little fish, yes of the big companies are ok to do it, but you must do your homework first, I am with a big fish but my big fish is smart they are not looking to eat just once they want to keep eating there four they are willing to get you under a tree and slowly feed off you, but if you are not smart enough to learn what they are doing you will be out side looking in good luck driver, be warn do your homework driver
    Justrucking2, scythe08 and nightgunner Thank this.
  8. bzinger

    bzinger Road Train Member

    Dec 10, 2014
    omaha , ne
    Not all carrier purchase plans are bad or intended as a profit center .
    Some like my small carrier use it as a retention tool and offer the 4 year old trades to the drivers at wholesale price on a 2 year note 24 months they hand you the title .
  9. Bigrayon

    Bigrayon Road Train Member

    Aug 16, 2015
    You are right, but a lot of guys don't do there homework and only think about it after they are about to lose everything they had in the first place,
  10. mover man

    mover man Medium Load Member

    Feb 21, 2010
    Can you do it? YES! Do most guys succeed on a lease purchase NO! What separates them? Many things, run your truck like a business being the first. Find a long time successful older guy at company you lease to. Then pick his brain going down the road. Listen closely and separate the bs from the real deal. Ask many many questions. Then ask the same question again later. Learn how to manage your money. On another post, a lady had leaseen purchased a truck. AfTER all expenses truck note, ins, fuel, maint, plates, escrow etc... She was avg $2-2200 a week home in the bank. I had guys (young guys not 20+year vets) saying that was pis poor and not enough. Well we would all like to make more. Anyone who says $2000 a week is ####. Is full of the same. 1800-2200 miles a week $2000 after expenses (except taxes) 40 weeks on road (that's 3 months off) = $80,000. Is not ####. Ask the people living off $30-40k a year.
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