L/P assumptions are amusing

So if I pay $175,000 for a new truck and when I drive it off the lot it's worth $100,000 you're telling me I have $100,000 worth of "equity" left in the truck? Ummm I happen to have a great lease purchase deal for you. I like the way you think.

 

If you paid cash for it then yes, you have $100K in equity in the truck. If you financed it and owe more than $100K then no, you do not have any equity in it. Equity is just the value of your property that you could recover if you sold it.

Ummm... Did I not just explain why lease purchase deals do not create equity for the lessor?

 

See this is a perfect example of what I was just saying in post #218.

 

I am making that on some

 

These guys think a 1.25 per mile is good money, but that's a joke theses e

 

I know a guy right now that bought a brand new 2018 glider from Fitzgerald peterbilt and is leased to someone making 1.01 cpm and he says he absolutely loves it. Wouldn't have it any other way.

 

Not much foresight in that. Running the miles necessary to stay afloat, that truck will be worn out with minimal trade-in value by the time it's paid for leaving nothing saved up to replace it. Not only that, but while it seems to be great NOW while everything is brand new and working perfectly, as the truck ages and miles add up, maintenance and repairs IN ADDITION TO that truck note are going to be a burden. Ask him again in 2-3 years if it's still working out in his favor. I don't see this ending well for him.

 

I asked him why he loves it so much and he said being leased they pay for everything except fuel. No trailer rental fee and they pay your IFTA taxes which aren't much anyway for 1 truck. Me personally I couldn't stand the 1.01 cpm

 

I doubt they are paying his maintenance. He just doesn't have any to speak of yet because his truck is new.

BTW this thread is about lease purchasing a truck through a carrier, not leasing a truck already purchased to a carrier. There is a huge difference. Your friend can simply leave that company and find another as soon as the numbers stop working for him.

 

Base plates and IFTA are next to nothing in the grand scheme of things. Wait 'til he's got to start doing more than basic maintenance (oil change/chassis grease)...or worse yet, experiences a breakdown. That $1/mile won't do much to cover his expenses.