Penske truck leasing

Discussion in 'Ask An Owner Operator' started by Khukha, May 18, 2020.

  1. Accidental Trucker

    Accidental Trucker Road Train Member

    Jun 4, 2015
    All true, although the section 179 is still limited in scope to where you might run into issues with multiple trucks, or, in our case, investments other than trucks.

    The maintenance-lease deal is most attractive to companies like us, for whom trucking is not the core business. It makes the transactions clean, the program is simple and clear, pay this, bring it in for service here, if it has a red light bring it here, come get the next truck here.

    It doesn’t save money for a trucking company, but it allows a “trucking company” to avoid overhead and staff costs.
    bzinger and Bean Jr. Thank this.
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  3. Midwest Trucker

    Midwest Trucker Road Train Member

    Aug 31, 2018
    Trying to follow you on this but doesn’t really make sense to me. How is it limited in scope? I have multiple trucks and I use enough depreciation as needed to get into lower tax brackets each year. Plus I own the trucks end of the day. For me I don’t need or want to call headquarters when I have a problem and wait for someone else to make a decision. I like to get it done now.
  4. longhaultransport

    longhaultransport Light Load Member

    Dec 25, 2009
    West Central, Florida
    Tough choice.

    On one hand it's nice to have a little equity at the end of the payment schedule.

    On the other hand, no out of pocket money, not having to worry about maintenance, breakdowns and downtime, (maybe a tax benefit) also sounds nice.
    Accidental Trucker Thanks this.
  5. FAST123

    FAST123 Light Load Member

    Jun 13, 2012
    They can do better on the lease rates, they have incentives on some 2018-2019 no mileage leftovers. Be very careful with the per mile maintenance fee, the penalty can be higher than the quoted rate if you go over. I've seen some leasing company penalize for coming in lower than your estimated mileage as well. We have a few leased trucks my best advise is to pay a driver a salary, and base the truck running on 46 weeks a year.
  6. fortycalglock

    fortycalglock Road Train Member

    Jun 25, 2011
    Tourist Town, FL
    .28 a mile including registration and all maintenance and I imagine loaner trucks for downtime is a pretty good deal for those actually running a business. What’s the residual on the lease? Does the mileage charge stay at the same rate if you’re at 200k miles a year? What kind of charges are you going to see at lease return if the truck’s beat up?
    Bean Jr. and Accidental Trucker Thank this.
  7. Accidental Trucker

    Accidental Trucker Road Train Member

    Jun 4, 2015
    I was referring to the roughly one million limit to the annual depreciation under section 179 and the phase out beginning at the 2.5 million total investment purchases. Not something a typical O/O or small trucking company has to worry about, but it does come into play in some circumstances.
    Bean Jr. and Midwest Trucker Thank this.
  8. TheLoadOut

    TheLoadOut Light Load Member

    Nov 6, 2019
    I would read over the Penske contracts very very thoroughly, especially when it comes to what they are going to cover maintenance wise. I've rented tractors with them at times and from my experiences they love to bill bill bill, charge charge charge. Things might be different on a lease though. It would take an absolute extreme emergency for me to ever use them again. I was getting bills months after the trucks were turned in.
    Dino soar and Midwest Trucker Thank this.
  9. Oakland Raiders Forever

    Oakland Raiders Forever Light Load Member

    Feb 24, 2020
    Yes what he says
  10. Ridgeline

    Ridgeline Road Train Member

    Dec 18, 2011
    Well the only way this would work right is now is if you have teams in place with contracted freight.

    I see a few holes, one is an assumption that your teams are able to run 170k annually without burning out.
    Western flyer Thanks this.
  11. magoo68

    magoo68 Road Train Member

    Jun 11, 2011
    st malo mb canada
    Wrong .... you better check what the overage is on the 210000 extra miles you might be shocked.
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