Lease option

Only about 15% make it in a lease program. Now also Cypress seems to be a better lease company. Also around a 10k nest egg should be around so if something happens with the truck a slow time of year like now etc.

 

Is the search button not working ?

 

@MOGLAR will give you the skinny

 

Well, this will be a short thread...

 

How many do you think make it in a LP that is not offered by a carrier?

 

That is a VERY good point... if the "business model" is only offered by the carriers then that tells you that the only party that the L/P works for is the carrier.

Their in the business of leasing equipment... if you fail they still win because they just repeat the process with another driver.

So it's a Win/Win... for THEM!!!

 

Theres a separate sub-forum for leasing at http://www.thetruckersreport.com/truckingindustryforum/forums/lease-purchase-trucking-forum.400/. You will get more information there.

 

I will make it easy for you. Don't do it!!!!!

However, if you are talking about a PAC leasing program from Kenworth or Peterbilt....that is totally different and worth doing depending on your operation.

However.....if you are talking about a fleece purchase with a carrier or some of the chameleon style leasing companies that are actually owned by the carrier(s) ......don't do it!!

I want to point out that they did not make anything work. The carrier runs the show and will determine who they will allow to "make it." it's a real medicine show act. It's like the fairways games you see at a carnival. They will allow only so many to win so they can bait 100 other suckers. Get the point.

 

What all these wonderful forum memebers don't tell you is that the guys that come on here complaining about failing at a lease program from a carrier weren't in a financial position to do that. They jumped into a BUSINESS not ready or have the understanding of running a business. All they see is the "HUGE" paychcek they should get each week and all the hometime they can take.

So, the question you really should be asking yourself is, are you ready to run a business? Do you have enough money saved up to get you through 3 months of slow or no freight? Do you understand enough about basic accounting so you don't have to pay someone to do your books and to tell you if and how profitable your business is?

Driving the truck is the easy part. It's the running the business part that most of these failed leas drivers have problems with. I am in a lease with my truck. I have just about 1 year left on a 3 year lease. During the 2 years I was able to pay off $80k in debt, save $13k as of this week and expet to save another $50k by the time my lease is up. Right now I am on track for that and when the lease is up, I'll turn this truck back and order a brand new 2018 that I'll do a lease purchase on instead of this lease/rental I'm in now.

When I look at the numbers of the drivers that walk away and fail each week at this carrier I am at, I know that that 15% success rate is wrong. It's consistantly around 10-15% failure rate for drivers that leave without finishing the lease because they ran there business into the ground. Like any business, it takes a lot of time and dedication to be successful, ask any entrepnuer out there how hard they had to work the first few years of starting there business. That's any business, not just trucking.

Good luck to you and your new business if you decied to start a new business.