L/P older equipment?

actually sold a truck to the driver 6 years ago ... didn't actually call it a lease more like a owner finance he paid me 400.00 a week for 50 weeks we agreed on a $50000 price then at the end of the 50 weeks he would finance the truck which was easy because he had plenty of equity in it and a decent maintenance account. ... he drove for me for 3 years and wanted his own truck and I didn't charge interest. . which I probably should have but was a good driver for me and didn't mind helping him out truck was paid for so wasn't losing anything ... we still are friends

 

But out of curiosity, what would it have been if he decided to leave instead of finish? And I'm assuming that the title didn't represent any form of ownership on his behalf until he bought it.

 

well it was a walk away lease if he wanted out and I would have made out financially unless he trashed the truck and I wasn't worried about that because he was driving it already ... we have the same bank and didn't have any trouble at all financing the balance at the end of the year through them and the title went right to the bank until he payed the rest off. that was worked like a regular car or truck loan

 

If you've known him for a while and he's a good conscientious driver, then ask him if he's willing to let you do a credit check on him. Lot's of guys don't ##### and moan about financial trouble, so do your due diligence first. If all is good, then sit down with him and have a long chat with him about all aspects of running a truck. There's plenty of expenses and headaches he's probably not run into being just a driver. He'll thank you if you scare him out of it, or thank you for giving him all your knowledge and experience to help him succeed.

Good luck to both of you.

 

The only problem I see is. If the engine or trans blow out. And the L.P. does not have cash, or financing to fix the problem, to keep the truck moving and making payments? What are the thoughts on this?

 

that's a tough one unless you are going to finance the repairs .... that's always a tough choice even for your truck let alone one you are selling

 

That's why I recommended doing a credit check first. You get truth instead of whatever a guy says. Repairs are a thorny issue to deal with if someone doesn't have a pot of cash to work with. Perhaps if kaka does occur, you'd be at least ahead on the money received in payments so far. If he can't fix it, then he wouldn't be able to keep making money to keep paying you. Therefore reposes on non performance of contract grounds. It would have been likely to blow if you had retained ownership of it anyways. So, with the truck back, you can decide whether to fix it or not, or just take the profit from the lease, and part it out. Probably would equal out.

 

After reading post I think I want to change my answer from no to yes.