Lease Purchase through (insert company here) is bad!

Whomever you talked to is one of the problems. Doesn't have a clue about what he is doing. That's the one real problem I have with the entire industry - there's not enough done to educate folks about what they're getting into.

First the $4000 a month he quoted isn't just a truck payment, its his total fixed costs. It's insurance, plates, permits, truck payment, probably an APU payment, occupational accident insurance, and I'll bet his personal medical insurance as well. That might even include some amortized payments for equipment, and maybe sleep apnea treatment.

Second, where do you get 92 cpm from? I pull on the reefer side, and last year I averaged $1.77 per mile gross revenue for all dispatched miles. Fuel surcharge this week was 47 cpm (if I recall correctly,) calculated off of our fleet average fuel cost at 6 mpg. That fuel cost includes some deep corporate discounts too. I'll be putting some $3.50 per gallon (base price less fuel tax) fuel in my truck in the morning.

I run solo reefer, and I do quite well. I certainly don't have a lack of freight to pull. Can I do better? Of course!! This is but a step on a long term plan. My current plans are to purchase a tractor at the end of this lease - and I'll certainly have the cash socked away to do so.

 

ironpony,I think you could tell your story a 100 times and alot of people will never get it.What you're not considering is the mentality of most American's these day's.People think they deserve everything right now and have forgotten,or never knew that you have to work hard and make some sacrifice's along the way to build a buisness and be successful.So just keep at it and do your thing because in the long run you will be far ahead of the herd!

 

You're saying this, you're saying that. What are you exactly saying? You failed at a lease purchase while using your brain? I don't get it.... I leased and did well, then I bought not 1 but 3 trucks from the same outfit.... Titles in my name not a pay now and get later. I don't know who you do business with, but I'm glad I've never had a business partner that doesn't read the contract and fails pissily, or is just ranting for no apparent reason. Either way.

 

I believe I said all in Pony......and it's his story....all from him. He humps glass from Odessa to Houston on a flat for Prime and that's exactly what he said , $4000 , .92 and FSC.....

 

Not doubting you, but unless this was four years ago he's making a lot more than that. 92-cpm plus FSC is the contractual minimum guaranty. That guy was either pulling your leg, or didn't have a clue about how much he was making.

 

I have met far too many people who have paid off their lease purchase trucks for me to believe it can never be done. I have met people from Prime Inc. who bought the trucks they leased, some at JCT, and some at my present company, ACT. Can it be done? Of course it can. Can anyone do it? Absolutely not! Some are cut out for lease purchase, and some are not. Some are fine with assuming some risk, and some would rather not. It is a personal choice. I will assume some risk, because I believe I have the knowledge and skills to succeed. Not everyone does. That doesn't make them bad people. It makes them perfect candidates for company driver positions. But just because you are happy with your company job doesn't mean everyone else should be. There are many ways to be successful in the trucking industry. What is best for me may not be best for you, and vice versa.

 

Curt I am glad you get on here to tell the other side of the story. It shows how much integrity your organization has, Which is something that is laking with most Omaha companies. I was a victim of the Merit Transportation debacle, and saw how Morehouse stepped up to help some of those drivers.

 

Yeah I know, Shes German, but there are complaints all over the internet about Sterling Introductions, I know people who still haven't gotten their money out of him.