Lease Questions, please don't attack

I'm not sure there's a question in there ... other than you want to be spoon fed.

Any lease can work ... any lease can fail. Those who succeed know that it a business and understand how to manage a business.

There's nothing in your post that indicates you or husband know what you're doing. Actually the contrary.

You're looking at starting a business. The first thing you need to do is run the numbers.

 

There are adds in the help wanted section. Team make over $200K year and own the truck.

 

Don’t kid yourself.

If a driver is driving 30-40% more miles as a L/O, it’s because the company was holding miles back. On top of that, a great number of failures in the L/O world are because people lack discipline and could benefit from forced dispatch.

No. The first place the company makes money is not only finding someone else to finance the equipment, and take on the expenses (fuel, maintenance) to service their customers, but also essentially becoming bankers and making money off the very equipment that used to be their expense.

It’s brilliant. You downplaying they’re brilliance makes them brilliant marketers as well. Brilliant!

 

Exactly where do you think the money is coming from to make the payments and cover the expenses?

 

I guess I’m not understanding your question or possibly I worded my earlier statement wrong.

But the money comes from the same place, at the same rate, regardless of who owns the equipment, no?

 

Bingo ... so exactly how is the company not financing the equipment.

They're out of pocket either way. Put a company driver in the truck or give the money to an l/o. Doesn't matter.

The smart companies are selective about thier l/os. The dumb companies think the efficiencies are simply because of them being l/os. Then they put everyone and thier cousin in a lease and start to lose thier butt.

 

I’m lost. The company leases the equipment to the L/O. Are you saying the company makes zero profit from that financial agreement with the L/O?

And forgive my ignorance if I’m wrong. I truly want a clear understanding of this as well.

 

Maintenance only (oil change every 50k miles). No repairs. The truck are under warranty.