Is it really a selling point?

Just a question for debate.
I have never, nor would I do a lease purchase. I see a lot of lease purchase deals out there, as well as a lot of posts by people doing them.
It seems to be a strong point pointed out by the company, and by those doing the lease purchase that it is a "walk away" lease.
My question is if walk away is such a strong reason for doing this, how successful were the ones before you, and how successful will you be?
I would be inclined to go with a company that boasts some kind of support program for new operators, or some kind of financial support. Walk away to me means it is more of a try it you will like it type of sell. Also sounds like a hell of a moneymaker for the company if you do walk away. Something tells me that there are no such things as true walk away, there has to be repercussions either financially or DAC related or ??
What's your take?

 

Should mean that they offer in house financing, no hit on credit, if you fail. Sounds good, except the “ system” is usually set up for entrapment. Borrowing money from them, for repairs. Outrageous ly high Truck pymts, and such. They act more like a Truck sales company, that moves freight,(Prime). Run the numbers, talk to other O/Os, that have been there a while, a couple yrs at least. If You can find one.

 

When I ask a driver why they want to do a lease purchase I normally get a blank stare. Everyone knows or at lease should know why trucking companies offer lease purchase but what I can’t figure out if why truck drivers want to do this.

 

What kind of financial support are you looking for?

Here's the keys to a truck, a fuel card so we can front you the fuel, oh we paid all your start up costs too.

So tell us exactly how much support you need?

 

Well it's pretty simple if you're a business man.

Here in lies the choice, do you want to be your own little trucking company or a company driver?

 

There's a canned answer that everyone regurgitates and I'll take the odds that it is the incorrect answer that you think it is ...

 

What is your answer ?

 

I was thinking more along the lines of coaching or assisting with common sense such as cost per mile, self emp tax, how much it really costs to run a truck. So many are told "but you can gross 100k a year" and that's all they can focus on. Yes I know it is common sense but we all know what they say about common sense

 

Cost per mile-

Well let me ask you, where are you going to run, and what kind of freight, what kind of truck?

Self employment tax-

7.65% of your adjusted gross

How much does it really cost to run a truck-

You asked that already.

 

Exactly! everything you are saying are questions that should be asked.