L/P assumptions are amusing

Tell me how you're making that and I will come on over

 

The numbers are coming from drivers who have done lease purchase, and have been ripped with all the hidden cost or the companies gave minimal mileage. Thus, the drivers were paying for high truck payments, maintenance costs, fuel, insurance, medical insurance, taxes, and so forth. Many years ago i was in a lease purchase, ran my ##* off, and still only made expenses, with minimal money in my pocket. That was in 1996 and i decided to start my own trucking company. My trucks, my product.

 

Because you sir are the minority. The 3% that do well. Keep up the good work.

 

Are we talking 3% of L/P persons who succeed. If so, that is a very low number of success rate in the L/P category. Especially looking at all the companies who offer L/P, and the numbers of L/P people who try this method of ownership. I do well, and succeed due to years on the road, experience, trial and error, and research over the years before making the leap to business owner. Either way is not an easy route to take if one is not fully prepared, or he/she does not do research, ask questions, have the proper people in place to help guide them (lawyer) to read over contracts, and so forth. I am not saying at all that there have not been successful people doing a lease purchase, but the number of failures outnumber the successful numbers.

 

Hmmm

 

Leasing a car or a truck has never made sense to me. You pay and pay, and never gain a cent of equity on it. A business loan to buy a truck makes so much more sense, and when you decide to trade in the truck you have the equity in it towards the next truck. That means you need a smaller loan on truck 2 so pay it off faster and once paid off keep taking the same monthly payments qnd put them into a savings account towards the next truck. After about 3 trucks you can probably buy truck 4 cash and then start saving up for retirement. Lenders all want you to lease because then forever you are in debt and paying them.
If you are young you may not yet realize this, but when you are say 35 or 40 and realize that for the last 10 or 20 years the huge amount of money you paid out, to not have any equity in your equipment at all, then you are going to be banging your head against the wall.

 

It’s always hard to remember lies.....

 

No

No such thing as equity in a depreciating asset. You have residual value, but that is not equity.

 

at least it has some value you can capture when you sell it.

my first truck was a LP, it was even a rent to own,
a used cabover, LP for 12 months and it was mine.

I wrecked it in month 12, but by then I had saved enough money to put some with the ins payout
and pay cash for my next truck, ins payoff was $7K , I owed $1K, I had been working hard and had $30K saved, so I put $7K with it and paid $15K for a used Ford LTL 9000,
I bought cabovers cause in 1989, they were dirt cheap, and then I bought conventional Fords because even though they had the same Cat or Cummins engine and the same 13 speed trans, as Petes and KWs, the Fords had no resale value and they were dirt cheap as well.

I paid $15K for the Ford and drove it for many years, sold it for $7K
I bought a couple other trucks, but after the first one, I always paid cash.
its just like a car, if you shop around, you can find a good deal from a seller who is in a bind,
and needs some quick cash.

I had no problems clearing $1200-1800 a week after expenses, fuel and insurance, in the 90s, on $1.25 a mile to the truck, fuel was a lot cheaper then,

I got out of trucking in 2000, so I dont know what the money is now, but it should be double or triple what I was making just to cover inflation.
if not, yall need to get into a different career.