Starting Lease Purchase.....

Discussion in 'Trucker Taxes and Truck Financing' started by Romans612, Dec 3, 2010.

  1. Road Dog

    Road Dog Medium Load Member

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    Here we go again. A lease purchase deal is fine for the company that holds the lease.First of all,if you wanna be an O/O you are gonna need good credit,so you can go out and purchase a truck.Either that,or a heck of a lot of money stashed away,so you can pay cash for it.My first truck cost me $24,000,and was just overhauled and ready to hit the road.I had to come up with a $6,000 down payment and finance the rest for 30 months.If I remember correctly my payment was $800.a month.Paid it off in less than a year and traded the old girl in on a new one.Back then I was leased to the old MS Carriers out of Memphis,TN.The O/Os were dispatched out of Chestnut Hill ,TN,and we were treated pretty darn good.Sure I had a few disputes over some minor things,but they were squared up by a phone call to HQ.I owned my truck and chose what company I wanted to lease to.WEhich is a heck of a lot better than leasing a truck from a company,then being under forced dispatch to them.And the hell of it is,you cannot just walk away from it if it turns sour.So to my way of thinking a lease purchase is not a good idea,if you sign up for it ,then the company really has you by the short hair.Think twice,then think some more before signing a lease deal.At the Colubus,OH Swift terminal there is a line of brand new trucks waiting to be leased,then across the lot is another row of trucks that the company took back from failures.
     
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  3. stiffride

    stiffride Light Load Member

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    I will tell you I did a lease purchase after I had been on the road for about 2 years I still had alot to learn! I did good for the first few months made good money didn't get killed with the payment and all that jazz. BUT when I started to make that big money I did what any inexperienced gun ho young driver does...I spent it like a FOOL!!!! & months into my year lease I lost the ECM on my N14 and didn't have a dime to pay for it. I did the next worst thing to do and borrowed the money for the repair from the company. Took all my escrow and still borrowed 3000 from them. 6 months later and making about 100 a week take home I broke even with my money and didn't owe anything to the company I got the heck out of the truck and stayed company till I bought the truck you see in my avatar. Lease can be ok for some people, but if you want to not go home for months at a time to make a descent living then I wouldn't suggest it. I was out for 3 weeks at a time, and I didn't choose to do it the company told me that I had to or I would be breaking my lease agreement. In short they own the truck and you own the bills no satisfaction is there when they hand you a bill for 20,000 at the end and say write us a check and the title is yours all that work for nothing. I didn't even make it that far I got out of my lease before it was over and if you wonder why I had the truck so long past the lease term.... Well I had to pay off the loan that they had given me which in turn extended the amount of time that I had the truck from one year to 2 years. NO WAY I said to them let me out, but don't get into the lease deal thinking that you are going to be able to walk away. If you look real close most of them have a clause in the agreement that says If you walk away you will be liable for all moneys owed for the lease term, and any damages that may have occurred while you had the truck. I can go on and on with reasons to just do the grind till you can save the money or get it somehow without taking on all the bills and not owning the truck.... PLEASE DON'T MAKE THE MISTAKE UNLESS YOU ARE SINGLE, YOUNG, AND DON'T NEED TO SPEND A DIME ON YOURSELF FOR ANYTHING!!!!!
     
  4. stiffride

    stiffride Light Load Member

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    Oh and my first truck you see here cost me right around 4000.. fresh top end and well maintained! Passed a DOT with no problems.....:biggrin_25514:
     
  5. Krooser

    Krooser Road Train Member

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    Are you out of your ####### mind???? Have you SEEN fuel prices lately? Do you live in Mamby Pamby Land? You are going to pay KLLM's mortgage on their truck so they can have it back after you go broke?

    Honestly there's no hope for someone who even contemplates doing a lease purchase ESPECIALLY when fuel prices will likely hit $5.00 per gallon next year... put a bullet in your head and save yourself some grief...
     
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  6. Corporal_Clegg

    Corporal_Clegg Road Train Member

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    Raleigh,NC
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    Ever heard of protected fuel prices? Fuel Surcharges? Negotiated bellow pump pricing?
     
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  7. mgfg

    mgfg Road Train Member

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    Like what the guys # Stevens get EXCEPT on MT miles 'cause it costs zero to run a truck MT miles.

    Love people with zero experience expounding their knowledge.
     
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  8. stiffride

    stiffride Light Load Member

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    Dec 25, 2010
    Holiday, FL
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    LOL you know it takes years even be able to know how to turn the wheel the right way...
     
  9. Corporal_Clegg

    Corporal_Clegg Road Train Member

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    OK, I know Im a noob, but what the hell are MT Miles? I have searched everywhere for that term.
     
  10. Lilbit

    Lilbit Road Train Member

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    Let me check my logbook
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    Empty . . . nothing but dispatcher's brains in your wagon!:biggrin_25521:
     
  11. Corporal_Clegg

    Corporal_Clegg Road Train Member

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    Thanks lilbit lol

    Anyway, keeping your "MT" miles to a minimum is part of running your business. If it got high enough to make the lease unprofitable then I would just switch back to company with no penalty. Not sure how KLLM's lease is but with Stevens we have a completely walk away lease with no penalty.

    As has been said many times before, leasing is NOT for everyone, and all Leases are not equal eigther. In the end though, it is up to the driver to decide for himself if he wants to lease or not.
     
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