Looking for 101 on lease purchase.

You are on the hook for fuel and insurance and all repairs usually. There is a maintenance fund setup that generally you put into every week in some fashion whether it be percentage or mileage pay. Most places you cannot take it to another company, they are usually all walk away leases though. I’ve seen payments anywhere from a few hundred a month to a few thousand. Just depends on the place. I’ve never done one personally but some people seem to do well in one, and others fail pretty hard.

 

There is a ton of information on this here on the forum. Just use the search button. But a short answer to your questions are Most megas don't require a down payment, well USA does.
You pay for insurance bobtail/physical damage.
You pay for fuel. You pay for repairs.
You pay for huge truck payment.
If you quit before truck is paid off they just take it back and give it to another sucker.
Not every Lease is this way but most of them are.
Just curious why do you wanna do lease purchase?

 

Well like most things lease purchase is all hype after all deductions the company makes you'll be lucky to be able to buy a burger I've tried a couple an went bankrupt an now homeless due to re garrison

 

There's an entire forum dedicated to your question. Good luck.
Lease Purchase Trucking Forum

 

there are sooooo many words in that thing though, i need a down and dirty, couple sentences

 

Here's 1 sentence. Don't do it!

 

You get everything that comes with owning the truck except your name isn’t on the title.

 

I'm sensing an economic turndown in the coming year.
Already heard of some layoffs and the market is pulling back.
Up until early summer there was lots of freight but trade wars have zapped this economy.
You will be competing w established carriers and operators.
Not a great time imho.

 

I’m sensing the same. But I continuesly research the market data. What I’m seeing doesn’t point to a long term economic downturn.

That said, even a 3 month upheaval can throw the best laid plans to waste.

 

I’d point you to checkout places like:

Lone Mountain Truck Leasing

Or similar. It’s a “lease” but really just a fixed payment loan. You can get a decent truck for $5k down and payments of about $1500 a month. This is a good option especially if you don’t have perfect credit (decent credit, 640s and up, is needed).

Usually they give it to you for 48 months and they include a warranty too. You can drive for whoever you want and if you don’t like they company, quit and drive for someone else.

Downside is that you are married to it and can’t pay it off quicker (well you can but you pay the full amount). You are responsible for the maintenance and breakdowns (again they usually include a warranty (however good it is...) and 6 pms with the purchase). If you add up the payments, you might get a heart attack. You end up paying about $75K for $50K truck. But again it’s with some maintance and a warranty.

For your first semi purchase you really don’t have many options. But this way you can get in the driver’s seat with little out of pocket money and make big bucks.
All the money you “overpay” you make right back in the first few weeks your actually driving and not browsing for better lenders.

I was able to get conventional financing for my rig but still at 14% with perfect credit and $10k down. I am leased to a company and get 90% of gross minus fuel (company fuel card so you don’t pay it upfront, but they take it out of your gross weekly income), $200 a week for trailer rent, $180 a week insurance and about $50 a month for ELD, Ifta and other accounting shananigans. All in all I take home about $4k-$5k a week. This is the good months. Bad ones it could drop to $1500 a week.

I will end with this. THE BIGGEST MISTAKE one can make when starting is blowing your entire savings just to get into the truck. FORGET ABOUT IT!!!! if you don’t have at least $5K (or three months truck payment) saved up in cash AFTER the down payment you are walking on thin ice, water really. I will give you a quick example, my great state of Illinois (sarcasm) passed a new rule that if it’s your first time getting an apportioned plate they do a background check of some sort on you and you are down for two weeks until your plate come in. No temp either. From the moment I signed my docs at the dealer, it took them one week to get the paperwork over to IL (I bought the truck in WI). After it got to IL, it took two weeks to get my plate. Add another week for all the “sighting on” and getting the trailer and stickers for the truck and viola, one month gone and $0 made. Just to the fact of buraucracy. If you think that $1600 payment is not due, boy are you mistaken!! Plus $500 insurance!!! So please plan ahead. I have $20k stashed and $25 in available credit card credit and I was still praying to god that the first month goes smoothly without any breakdown or “unkowns” trucking is NOT HARD. there is no 4 year college for truck drivers or owner operators. It is 80% common sense, 10% talent and 10% luck. As you can see from above the general population struggles with the cs part. I’m an optimist through and through but when it comes to big riggin and making a decent buck, one must approach it pessimisticly to have a solid foundation.

Good luck and remember the hardes step in all... is the first one.