Prime Success Leasing

2015 Kenworth.
Too old already?

 

Oh I see. I'm sorry I thought you said it was your truck, you hold paper on that truck or are you just a lease op?

 

I am leasing it.
Why would i want to own a new truck?
The lease payments are a complete tax write off.

 

Why? So the payments will one day stop. The depreciation of an owned truck is also a write off.

 

One day the payments will stop? Yeah the day that truck is no longer under warranty and you'll be paying more in maintenence.
You'll pay one way or another.
Depreciation of owned vs leasing write off are different.
There's a reason even some carriers lease their trucks.

 

I've read that a lot of primes DMs or what ever their called don't like KWs on their board......

Strike one ....

 

Hmm so the maintenance will one day cost more than the truck itself. Geez according to you I guess there's a lot of o/o's that would be better off selling they're paid for equipment and leasing. Why don't you open a new thread to spread that information around and we'll see if you get any traction.

I find hard to believe that you don't understand how depreciation works. I depreciate 100% of the value of the truck over 3yrs. Its taken as a tax deduction just like lease payments. Then when I sell the truck I have to recapture the depreciation on the sale price, means I get taxed for what the truck sold for. So what you're saying is that you'd rather make a truck payment so you can get a tax deduction on the amount of the payment, rather than have the money and pay some taxes on it. Makes no sense.

 

Didn't you mention something about trolling eariler?

I never said maintenence will cost more than the truck, i said you pay one way or another.
When you are forced to sit for a week while your truck is in the shop that is costing you also.

So what you're saying is the endless carriers that buy and lease new trucks every few years have no business sense and everybody would be better off to hang onto their older paid for trucks right. Okay buddy.

I'm doing fine financially and am happy. Works for me.

 

Now you're putting words in my mouth. You were asking me why you would want to buy instead of lease and I answered your question. Its because I want to further myself and my business and make progress in my life. If you're happy were you are then that's great, hey you asked I answered.

 

"better off selling they're paid for equipment and leasing." And you defended having an older truck paying maintenance.
That's whers i got that from.

Anyway
My first job was at RE WEST.
A family owned company and the owner was always around.
They lease most all of their trucks and get rid of them every few years. The owner directly said they've ran the numbers and that's the most profitable operation they can run.
All I'm saying is theres a reason many lease including carriers.