Should I give up my lease purchase and buy a relative's truck?

Discussion in 'Ask An Owner Operator' started by Plecc94, Nov 6, 2020.

  1. Plecc94

    Plecc94 Bobtail Member

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    I'm currently a lease operator for a mega carrier, and doing fairly well. I lease a 2020 Cascadia just bare bones nothing special about it, fleet spec.

    A relative of mine that I'm not really close to has been an owner operator for many years and my Grandparents told me he is wanting to sell his truck because he's going back to Ryder because it makes more money for his business, or something. So I talked to the guy and this is what he has..

    It's a 2018 Kenworth T680. It has 318K miles on it. 13.2K Meritor steers, 40K Meritor drives, 3.25 gears, 13 speed, 220 gallons of fuel capacity, and a 2017 model Paccar MX-13 set at 450hp. He says he has a 4 year/500K extended warranty for the engine, DPF, and TriPac. He included leather seats, gauge package, dual antenna CB hookup, factory refrigerator, TV mount, and 1800W inverter.

    He's an older guy that I've never really met before (my Grandpa's nephew) that told me the truck is paid for and he just wants to go back to renting from Ryder because he has a lot of direct customers he hauls for and the potential of downtime could cost him a job and he liked that Ryder replaces his truck for him if it ever breaks down or needs maintenance. He said he bought the truck brand new and hasn't had any issues with it. Said he does a PM around every other month, and he bought the truck brand new.

    He asked how my lease was going and what I was paying weekly for my truck and how my finances were and said that if I could pay him the same I pay now for my lease truck, he'd sell it to me for $50K.

    It's something I'm really interested in but the sound of Paccar MX-13 scares me a little. I've heard horror stories about their emissions problems. Is it something I should consider?
     
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  3. Spyro2112

    Spyro2112 Medium Load Member

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    F ing yeah
     
  4. rjs

    rjs Bobtail Member

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    Its a good deal. Better than the mega carriers deal that will never work in you favor anyway. I have a t680 with the same engine. I love it. No issues, good milage.

    If he's willing you finance you on it I can't see how you're any worse off that you are now.
     
  5. gentleroger

    gentleroger Road Train Member

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    He wants to go from owning his own (paid for) truck to renting "because it makes more for his business" and "he wants to eliminate the risk of losing work due to breakdowns" RED FLAG 1

    He's willing to "sell it" to you for, rough math, 15% under market. RED FLAG 2

    He wants you to continue making the same payments you are currently making on a newer vehicle. RED FLAG 3

    How much is it going to cost you to get out of your current lease (including downtime switching trucks)? There is at most a year and a half left on the warranty, odds are that you'll be looking for a new truck inside two years either way, but by that point the KW is going to be worthless. Long term where do you see yourself?

    If this wasn't a 'relative' (Grandpa's nephew isn't exactly a blood relative), but just a random guy would you be considering this 'deal' at all?

    I'm not saying it's a dumb idea, but make sure you do your due diligence and understand all the risks and the rewards.
     
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  6. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    That's a good price.

    If you have some money saved, and are good at saving / managing your money, you still have a year or so of warranty to continue building a substantial war chest for repairs.

    I'd do it.
     
  7. OldeSkool

    OldeSkool Heavy Load Member

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    Might be a good deal. By the way, don’t expect much from the extended warranty. There are very few reviews of extended warranty that sound like it’s worth anything. I was going to get it for my truck, but after reading tons of bad reviews about extended warranty I didn’t waste my time.
     
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  8. ZVar

    ZVar Road Train Member

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    Mfg extended warranties are fine. It's the 3rd party extended warranties that are a waste of money. That's if the mfg warranty is transferable to the new owner anyway.
     
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  9. Judge

    Judge Road Train Member

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    He’s deducted and depreciated all he can,
    Plus he can deduct 100% of lease Payment to Ryder.

    It’d probably be a good deal
     
    blacklabel and OldeSkool Thank this.
  10. Ridgeline

    Ridgeline Road Train Member

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    Look there are a few red flags to all of this, one is his pm regiment, sounds like he just does it Willynilly but if he is going to take on financing, offer $45k after you do the due diligence (never buy a truck blind) and lease it from him, let him have a share of responsibility if it craps out on you.
     
  11. riggins44

    riggins44 Bobtail Member

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    Doesn't sound like a bad deal. I think the next question you should plan on is what are you going to do with the truck once you have it?
     
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