Lease or not to lease that is the question

Allamerican, that you in that pict? That's F'n crazy... and I take my dogs to the puppy park!

 

You forgot to mention that the trucker busts his butt to make excessive payments for a wore out used truck that may well have been paid for 3 times over since new, and when times get hard, contracts get lost, competition doubles inside of a year, guess who shoulders the load (losses) and deals with the potential bankruptcy and probable damaged credit issues?

Hint: it's not the party whom you pay every week, whether there's decent freight or not.

I'm not saying there are not a few good leasing opportunities out there but they are few in number, and regardless, the "trucking business" is not for everyone and especially those who can't afford to lose some months and don't have the cash reserves to carry them through the lean times.

 

Kind of riding on what STexan was saying about leasing.... there is two different types of leasing. You have the mega-carrier, third party, rip you off lease and then you have the legitimate Paccar type lease through an actual financial institution. Leasing on your own through a company like Paccar (and there are many others this is just an example) allows you to truly be an owner operator and run your business how you feel necessary. Also the payments and fees are a lot lower and you are free to decide what and where you want to haul and for how much instead of leasing with a mega-carrier and getting paid a whopping $.80 - $.85 a mile!

Sorry STexan not sure if that's what you were inferring to as a "good lease opportunity"?

While on that subject, Paccar and companies similar to them offer some really good leasing deals on new and used trucks of all different types along with trailer leasing programs also. They also have multiple truck leasing options and on top of this they will also take care of all the maintenance for you too. Maybe a little pricey but the option is there if you wish.

If you are thinking about becoming an owner operator this maybe a good way to start out instead of a hefty down payment toward owning your own. Lease for a little while and learn the ropes, save some money and then if you decide that you like being an owner operator, take the next step and buy your very own big truck! A nice custom one, spec'd out how you like it!

 

I have issues with the lease programs at CR England, John Christner, Prime, etc. If he's insistent on running his own truck, though, in-house carrier leasing programs are probably the best way to go so as to not force him into potential bankruptcy and wiped out credit if he doesn't make it and wants to walk away, and can get in with little money down. but if you can't invest $20k-30k up front as a down payment for a new[er] truck, you are going to have a hard time ever gaining any equity and reasonable payments. (or at least have that kind of money available to pay for bad luck, expensive break-downs, towing, etc that some are bound to experience in the beginning)

The idea that you can "be your own boss" and "earn good money from the start", with no or very little money down, is a pipe dream.

 

"The idea that you can "be your own boss" and "earn good money from the start", with no or very little money down, is a pipe dream."


Fully agree with that one!

Not only is it a pipe dream but its a very bad business making decision. Its like running a business entirely on credit cards!

For those interested in becoming a small business owner or just plain succeed financially in life, please refer to "Dave Ramsey" for the correct procedures.

 

Everytime I see someone who wants to lease I think, why? Havnt they heard all the horror stories? or do they have a very bad case of " white line fever"? Read and decide : Farmer Brown had 1000 acres and a double wide, Farmer Brown is going to lease you the land and a double wide, put up the money 4 seeds,fertilizer,fuel,ect. if you give him half the crop(after expenses). you work hard get crop planted, do all you need to do, 2 weeks before harvest a big storm comes in and wipes out 500 acres you harvest the other 500 acres but it is just enough to pay Farmer Brown for expenses,not enough to cover rent on double wide you are now on the street, you are broke, this is what a lease purchase is : SHARECROPPING !!!

 

First; I'm no expert.

Second. The OP has been driving 11 years, just joined and has a leasing question. I would think he/she would have seen plenty of 'real world' results of how good a deal leasing is on a regular basis. So my skeptical bone itches.

From my research a lease can work and many seem to have done/doing it. There also seems to be just as profitable other ways to make money driving a truck, with less risk.

 

No! But wish it was !!! That WOULD BE my "puppy park"!!! Never jumped with a dog.