Get paid .92cpm or a percentage?

The truck is already 1 year old, after the lease it will be 3 years old and at that time Dick can purchase it for $50,000. He hopes to have half that money saved up by then for the down payment.

Where else can a guy get his foot in the door for just nothing down and 2 years of moderate suffering and have the potential to reap killer benefits?

 

i think a lease is a good step for some to get your foot in the door like you said--but all i am saying it is a #### scary proposition--but some people can do it--i wish mr jones the best of luck and hope he can do it--the good part is --you can always walk away from it--but those 2 first years are going to be hard
will swift release it to you after the 2 yrs?---i dont think saving 50,000 in 2 yrs is in th e pay

 

Tell me how you think it was done before the L/P scams came about?

You missing the point...... He is still paying $102,000 for a truck that is already a year old. In the 2 yrs he is paying their truck off alot can happen!

But with your thinking wouldn't it be smarter to go find a truck someone just turned in after the 2 yrs and purchase it for $50k? I'd bet my last dollar that swift won't do that!

Dick, what you're not getting is we aren't bashing Swift like you want to think we are, we're bashing the whole L/P scams!

As for getting you foot in the door, well the only door thats gonna get you into is the banckruptcy lawers door!

 

If you inspect the truck properly, get a good oil analysis, 80% of the horsepower to the ground on a dyno - in otherwords in all appearances a good truck - you can still blow a turbo, have the egr go haywire...

Do you have enough cash reserve to pay for an in-frame? If not, are you planning on putting away enough to deal with something like that (let alone say a blown steer) so that its there?

You may end up lucky and doing well, but the majority of folks who do a lease/purchase have a less desirable outcome. Maybe you should think about this some more.

http://letstruck.com/

 

Well let's put some actual analysis to the numbers and see how bad a deal Mr Jones is getting.

First the value of his truck. You say it's not worth $80K of which he will be paying a $102K for it.

Searching the internet for used T660 ... a 1 year old truck with a 100k miles seems to be going in the range of the high $90 to $115K. So just on the surface it appears that he is paying no more than the truck is worth.

By the way what Swift pays is irrelevant. The going rate for a new T660 is north of $125K, what the dealer mark up or the company mark up is, is of no consequence.

Now let's put some of your math to this ... say a 1 year T660 is $95K. And since Mr Jones is not putting any money up front, lets go ahead and buy this truck for 100% financing. Let's also say you can get a modest 6% financing on a used truck. All this mind you with bad credit and no track record running a trucking business.

The weekly payment on a 24 month loan will be $981.87 ... just slightly more than the $500 a week that Mr Jones is paying. The total cost for the truck is $124,114.69 ove 24 months ... That $102K that Mr. Jone is paying is looking pretty good for an equivalent vehicle.

Now lets look at the impact of that additional $481.87 that you pay for buying a used truck. Thats' $48,554.69 in lost revenue purchasing instead of leasing.

Total cost of puschasing T660 vs leasing 1 year used, with 100K miles is going to be $172,669.37 ... about $70K less than the screw job that Swift is giving him.

Now, you say a 3 year old truck with 500K miles isn't worth $50K. Well again doing some research T660s, 3 years old in that mileage range are going for $60k to $70K .. so it appears the Swift is again screwing Mr. Jones by charging him 20% below market for a used truck.

 

I've noticed a majority of lease/purchase naysayers on the boards here. It's like a tossup between 'how to pee and poop in your truck' and 'don't lease a truck- read my horror story here first' as to which topic has more threads.

Here are my theories:

• The naysayers are 100% right, avoid lease/purchase at all cost your company will do everything in their power to conspire to ruin you financially, if they can't do it by overcharging you for your truck, they'll make you sit somewhere with no load and starve to death, but in the end they will always be interested in making you work for free (negative paychecks)
• The naysayers are jealous company drivers who don't meet the criteria for lease/purchase with their company due to excessive tickets/citations/violations, lazy- can't produce 10,000 miles a month, or failed in their own lease/purchase endeavors due to the above
• The naysayers are company drivers who hate their company, have a general distaste for L/O's due to having loads stolen by them, passed up on the interstate by them, jealous of L/O's being paid upwards of 3 times the company driver's pay, getting bumped in the shop line by L/O's who get priority service etc
• The naysayers are O/O's who are jealous of the company 'hand-holding' and ease of newer drivers coming into brand new trucks for relatively little pain, as little as 6 months experience- (no down payments, no credit checks) with a combination of a little luck and a lot of hard work can succeed very quickly in comparison to the traditional model of O/O who had to work extremely hard to get their first truck or trucks perhaps saving and scraping for years see it as simply unfair
• The naysayers are O/O's who hate seeing the freight rates continue to decline year after year by ever eager new L/O's willing to pull the loads for $.9 a mile all day long- and have a vested interest in changing the mindset of any upwardly mobile truck driver who is interested in something a little better for him/herself

 

I understand no NY. But the west coast is some of the easiest miles in the country. If your going to make it as a lease operator you better get over yourself. Starting off telling them where you wont go will certainly get you lots of sitting time. Neither is a very good deal over all. but cpm is safer than percentage in the case of general freight.

 

Here's the stright deal on being a lease op [IMHO]. If you want to run hard all the time and never spend any real time at home, then OK.

If your single and have no young kids who want your time and need it, Then OK.

If you really understand how to budget and stay on it then, ok. But if this is true you more than likely have the down in the financial institutions making more then the truck will.

If your old lady is very difficult to get along with and you really would like her to go away anyway, then ok.

If you have been driving for more than 5 years, and kept track of all the truck expenses so you really know it will cost you 50 to 55 cpm to keep it rolling down the highway, Then OK.

But personally I have not read a lease to own agreement that I thought would make me more than I make nows, So I don't see the point for me. Maybe it will work good for you, but be very careful, Wabbit.....

 

Don't know where you was looking at trucks, but I looked over on truck paper and seen most 09's under 90k. Now I didn't go check mileage cause I just took a quick glance.

As for you idea of financing a truck for 2 yrs...lol... not many do that! So them numbers really don't make alot of sense to me for several reasons. Most finance a new truck for 5 or 6 yrs and used trucks are 3 or 4 yrs. Things may have changed since I've bought a truck, don't know? But regardless, if he did finance one for 2 yrs and had that astronomically high payment, the truck would be his, paid in full. YOu seemed to have missed that point. ALso any work or money put into that truck would be his write off not the companies.

I never said the truck wouldn't be worth 50k when the lease was up. I did say I'd go look for one of the trucks that just got turned in after someone finished the lease and purchase it for 50k. But I have to doubt you'd see swift or any company allow that!

See the point alot of you are missing... The company you are leasing the trucks from is making out like bandits! They don't have to pay any taxes, workmens comp, insurance and I'm sure alot of other things on the L/P people. One big thing they don't pay....... is a truck payment! Thats what you are for.

There is alot more to it, but its not worth my time to explain it. You'll still go do it thinking you will beat the system. You won't, but if you do, I'm happy for you!