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. Cat sdp

    Cat sdp . .

    7,640
    12,236
    Apr 8, 2012
    Orion's Belt
    0
    Just stay away from Schneider’s choice program......

    P.S. Most Direct customers want it done as cheaply as possible. It’s a rare one that values service over cheap......

    And for those kind you bend over backwards.....
     
    nightgunner Thanks this.
  2. 6wheeler

    6wheeler Road Train Member

    1,867
    2,175
    Aug 30, 2009
    Charlottesville, VA
    0
    Your right on target. A lot of mega companies are selling the idea of "ownership" to driver's, when really they are acting as a used car salesman on the lease purchase.

    Lease purchase=Companies that want to own the truck and driver but not have to pay for them.
     
  3. thelinedriver

    thelinedriver Bobtail Member

    29
    4
    Dec 24, 2017
    0
    dont want no high interest rate thats for sure.
    I am starting to realise one mans idea of poor is another mans idea of rich or well off.. just saying
     
  4. thelinedriver

    thelinedriver Bobtail Member

    29
    4
    Dec 24, 2017
    0
    getting every one on the same page is proving to be impossible
     
  5. Justrucking2

    Justrucking2 Road Train Member

    3,211
    4,128
    Sep 12, 2017
    Plymouth MI
    0
    You never will... LOL!
     
  6. Justrucking2

    Justrucking2 Road Train Member

    3,211
    4,128
    Sep 12, 2017
    Plymouth MI
    0
    That first truck, you will pay a high interest rate if you have anything less than a 700 credit score and assets to back it up. But, a few points is much better than shelling out $3000 to $4000 a month, not including all of the fees these outfits saddle you with. So, instead of paying $4000 a month, you are paying $1200 a month on a one or two year loan? So what? You at least have the freedom to go find that outfit paying $2.50 a mile vs $1 a mile and that truck payment. I will pay the vig, at least he is up front in the screwing he is giving you. ;-)
     
    JustinsTrucking Thanks this.
  7. Wickedfire77

    Wickedfire77 Road Train Member

    2,517
    1,929
    Mar 3, 2013
    Northern, Michigan
    0
    First off) why would you l/p out of desperation? If you have a decent company job, or can get a better one, do that.
    I’ve found that a 100% down payment on a truck works best. If not, usually 20% or so.
    Second) every story is different. A husband and wife team will dwarf a solo drivers income. But the solo driver may have fewer expenses.
    On the line of solo driver is the only income earner, and wife doesn’t work, you will be married to that truck if you LP. It can work, but there no such thing as vacation time or holiday pay. Even if you sit a week, that payment comes due, and an LP company will take their share before paying the driver.
    Good luck.
     
  8. 2legit2quit

    2legit2quit Bobtail Member

    3
    0
    Jan 8, 2018
    0
    Which company is that ?
     
  9. MooneyBravo

    MooneyBravo Medium Load Member

    669
    947
    Feb 20, 2012
    Brunswick, Oh
    0
    I would listen to SKYTHE. If you're going to be a successful owner operator you must first be a good businessman. if you don't have good credit or you have no credit and you have no money put away those are two good indicators that you're probably not going to be a successful O/O. Bad credit comes when we don't pay our bills on time or we don't pay them at all it has nothing to do with being poor.
    I used to have no credit and I used to have bad credit but I got my credit fixed and now my score is up in the high 700s and I don't care who you are you can do the same thing too. The first thing you need to do is start by getting a copy of all of your credit reports which can be done at annualcreditreport.com and it's free.

    You need to go online and educate yourself about your credit report and learn how to assess it and also how to repair it all the information is readily available if you are willing to do the work. Lease purchasing and buying a vehicle with no money down has become very popular because we live in a world of people that want what they want when they want it but they don't have any money so what they do is they end up paying more in the long run.

    The other reason lease purchasing has become very popular is because it cost a lot of money to operate these trucks and the companies have learned that if they can convince you to buy the truck and make you liable for the expenses it will save them the money of having to maintain that truck and in the meantime you're not making any kind of money and you're going broke and you're screwing your credit up even further and then one day the whole thing blows up in your face and then you end up having to return the truck and you've paid money for nothing.

    Trust me when I tell you this because I have seen it over and over and over again.
    Remember this:
    A poor man asks, how much will it cost me today?
    A rich man asks, how much will it cost me altogether overtime?

    Get your credit score in shape and prove to yourself that you are capable of putting money away because that is exactly what you're going to have to be able to do in order to be a successful owner operator.
    You can also go to places like Credit Karma or credit.com you can go on YouTube there are as many resources readily available that will help you educate yourself about how to build a good credit history and score.

    The other thing you should understand is you should never lease or purchase a truck from someone that controls your dispatch. You should do this through your own financial institution separate from the people that you are leased onto or work for.
     
    nightgunner Thanks this.
  10. nightgunner

    nightgunner Road Train Member

    2,112
    2,725
    Jul 23, 2013
    Cedar Rapids, IA
    0
    Great advice!
     
  • Draft saved Draft deleted