L/P

short thread........

 

Mathematically speaking I think its an impossibility for a lease/purchase to be completed and successfully. I think it was the great philosipher mathematician Einstein who said it best, "L/P is just risk shifting" or something like that....

but it is a good idea for a thread.

 

I knew of one guy out of Kansas that completed a L/P program back in the 80's with one of the van lines (United I think) and ended up with a wore out GMC Astro cabin over. He said when freight got slow and their wasn't much work because he was close to being done with the L/P program he had enough saved to pay them off and he left. This is the only person that I have ever came across that had done it.

 

I have always wanted to know who the first trucking company to have a lease purchase program?

 

My guess is midwestern express in th 70s...

 

The $1 down lease. lol. Well their was also a company in Cushing, Oklahoma back in the 60's and 70's called Bray Lines that were big into it to.

 

Remember...if the lease has a balloon payment...you will likely never make it....so after a few years of paying...they keep the truck. Now to be fair, not all lease are structured to sell the operator the truck at the end....if it is it should be at a low price...not full retail value, or it will never happen!!
Most L/P's start folks out in a truck that is far too $$$ for a newbie to make $$, and then they bill you to do all the back-office work...so you are buying a job as a driver (the back office stuff and DIY maintenance is where the $$ is made and the $$$$ saved!!)...and taking on the risk of the economy slowing down, or the L/P sell not marketing their product to your customers hard enough...
They actually make MORE MONEY IF YOU FAIL!! Think about it...the less you drive...the more the truck is worth at the end of the lease....and they will get their $$...so now down side for them...if they get busy...and need yo they make a %, but if it gets slow...they still make $$ off the driver!!

 

I know of a couple JB L/P drivers that completed the lease purchase. One guy in a truck stop showed me the title to the truck that he just paid off the week prior to that. Their is a guy that posted a big article online about how to pay off the truck thru the L/P deal thru JB. I honestly believe that it can be done.