force lease

Funny, all my titles say I own the car, with a lien on it by whatever bank I financed thru. Same with my mortgage deed.

 

Lol..... Well, I don't know what else to say other than repeating what I said in the second paragraph of my last post before his one.

As far as financing a house, I don't know because I've yet to do that.

 

In THIS state, you get a title w/ the lien listed. At the end of the lien, the bank sends you a lien release you take down to the DMV with your "old" title and they send you a new one.

As for the mortgage, if I didn't own the property, they couldn't tax ME for it.

All that being said, if you don't make your payments, said loan holders are gonna come take it away.

 

Did you only read part of my post? What I told you is the gospel truth.

I also told you some states send the title to the lien holder and some to the owner. Either way, unlike a lease it has your name on it. It also requires a legal action, in a court of law to take it from you. Thus it belongs to you. Yes the financial institute has a legal claim equal to the balance due but it is yours.

To take this a little further let’s look at a case of the financial institute retrieving it’s collateral for non-payment. If they do this, they sell the collateral to recover their money. If they get less than you owe, they charge you a deficiency balance equal to their loss and costs. If they get more than you owe they are required by law to give you the balance after deducting the recovery costs and legal fees. They must do this because the truck belongs to you and their only claim, per the lien, is for the balance of the loan and reasonable costs.

It is not like this with a lease because you have no ownership rights since your name is not on the title. They can and will charge all kinds of fees, per the agreement, to return their truck to the condition it was in when you took possession. They will take all escrow monies and anything else they can get. Since you do not own the truck, you are afforded no protection under the law.

If I wanted, I could Google up something to prove my point. I just don't have the time or effort to waste on foolish Internet information when I have the facts already.

There is absolutely no comparison in leasing and purchasing and who owns the equipment. Some states don't send you the title because they fear it could be altered. Missouri believes the equipment owner has the right to hold the title to the equipment they own. It is the same for a car, truck, motorcycle or tractor.

Do some real research and stay away from self-proclaimed Internet experts! Sure it is true, under either a lien or a lease, you do not own the truck free and clear until it is paid for. Still with a purchase and lien you have ownership rights not afforded you with a lease.

 

How about we put it back on topic? Obviously, things happen differently in Missouri and wherever it is dragon tamer calls home.

I'm not gonna argue about this any longer. I know the majority of the differences between leasing and financing but when it comes to financing in Colorado where I live, you don't get the title when you are making payments on something. You get that when you pay it off. Plain and simple.

 

Leasing is very different than conditional sales contract (buying).
In a lease, the lessor retains title to the property. The lessee has use of the property under terms of the lease.
The reason leasing is so much easier to finance is there is a clear path of ownership and the lessor can recover the property without a court hearing first. In a conditional sales contract, the lienholder must show their damage and ask the court for permission to recover.
You have far less rights under a lease.
But in either case, if the contract is written properly, it's your's at the end.

 

Thank you very much. This is the point I'm trying to make......maybe he will understand your explanation better.

It doesn't matter what state you live in, ownership gives you rights and protections that leasing doesn't.

IMHO since the thread is about being forced into leasing, offering information on the pros and cons of leasing is on topic.

 

Um, "Maybe I will understand HIM/HER better."??

First off, the majority of your argument was on our conflicting ideas of what true ownership is when you finance or borrow money to buy something. Leasing doesnt have anything to do with this particular aspect because its a whole other matter.

I dunno, despite what different states do, I guess it all boils down to what "your" idea of true ownership is. Yeah, you may be able to do things to the vehicle, home or property that you are financing because when you finance, you are basically financing to own but in my opinion, it, what ever it may be, it is not truly yours until you pay it off. You may have more freedom with it and even get some kind of title, but it still doesnt mean the same.

Just like what DragonTamer said,

If the first title was good enough to say that the said object was yours, why do you need a second title given to you when you pay the note off??

Second, how did Maxwell explain the supposed point you were trying to make? Looks to me like all he did was explain the differences between leasing and financing which I may not know everything about it, I still know enough to understand the differences.

Well, the reason I said what I said was because there was too much being said about how financing works and this thread isnt about financing.

I just merely mentioned it as to compare with leasing that even with financing, you dont truly own anything until its paid for.

 

My info is strictly pertaining to the laws here. You do not have to go get a new copy of the title if you don't want to, but you better keep a hold of those lien release papers. You need some form of proof if you choose to sell the vehicle that it is no longer encumbered by the lien. I don't know the ins and outs of selling things that are still encumbered by a lien holder. The notation on the original title protects both the lien holder and anyone that may choose to purchase an encumbered piece of property from you.

Leasing is renting. Sometimes at the end of a lease you can opt to purchase what you've been renting. Sometimes not. Sometimes you wouldn't want to exercise that option.

Leasing DOES offer someone who wants to get their feet wet in ownership of their own business by allowing you to not encumber yourself with assets you can't afford at the start of your business. In my understanding of the current tax code (and I am NOT a tax professional): the cost of the lease is completely tax deductible, as are maintenance and repair costs.

I agree, leasing costs more than financing a truck outright. Sometimes a driver may not actually be able to finance or buy a truck outright. Leasing still allows them to "own" their own business. Their business assets just don't include the truck.

In an earlier (much earlier) thread someone wanted to know if you rented (leased!) a building to run your brick and mortar business out of would YOU pay for repairs, etc? Well, having read multiple leases for doing exactly that, let me tell you a few things about typical lease agreements HERE. The air conditioner breaks? YOU pay for it. The roof leaks? YOU pay for it. You might catch a break if you can claim a roof repair on some insurance-covered event. The glass in the front window cracked? YOU pay for it. Ceiling falls in? YOU pay for it.

If some weather event occurred or a vehicle drove through my front glass, the insurance (that I paid for) covered the loss, after my deductible.

If I remember correctly, the only time I wasn't responsible for some structural issue was in the case of a foundation issue, at least at the grooming shop.

JCW's ex-boss(decent guy, just not cut out for business ownership) leased the shop they worked out of for 5 years. It was on him to pay for the roof leak because he had not noticed the leak before he signed the lease (you do have the right to address structural integrity and force the owner to fix stuff BEFORE you sign the paperwork). As we were in the middle of a drought at the time, there was no evidence (wouldn't YOU as the owner put in new ceiling tiles?) of a leak. Until about 8 months later when it rained INSIDE almost as much as it did outside. JCW helped TB seal the roof, and that helped a lot.

I understand the reasons for the clauses that created such situations. At the grooming shop, there are lots of things that can mess up the A/C. At the repair shop, car accidents CAN lead to holes in the walls. I remember at a different job an incidence of a lift failure that fortunately didn't damage the floor, but could have. The floor damage wouldn't have been anyone's fault per se, but the owner of the building wouldn't want to pay for it.

Leasing a truck is different in that your "office" is going to have mechanical failures. There are inherent issues with anything mechanical.

Leases are always going to be financially on the side of the Lessor. That's the nature of a lease. At the end of the day, it's up to the lessee's to make an INFORMED decision as to what is best for him. That means taking a copy of the lease to a property lawyer for a consultation. That means talking with your accountant on how best to protect your personal assets. That also means making sure you have a reasonable exit strategy if you determine that leasing is not for you.

 

Maybe to get back on direct topic here...There are SOME companies that effectively try and force you to lease. If the threads are to be believed, CRE is one such company.
You do not have to do anything you do not want to.
Research your potential companies carefully. If they are prone to leasing and you are not so inclined, then find another company. There are plenty starter companies out there that will train you and allow you to become a company driver.
Don't lease if you are not 100% sure it's the best route for you. Then if you decide to explore leasing, be sure and have an attorney review the contract in advance and advise you as to what you're signing. Too many people sign these things without understanding what it all means, and then end up in a giant pool of crapola.
Leasing with the right terms and conditions can be very beneficial. I have done both.
But under no circumstances, become involved with a company that is going to pressure you into anything you are not comfortable with.