Starting Lease Purchase.....

Sorry Romans612 but I think your post is permanently derailed. Once you ever mention leasing, the "I know it all but never actually done its" swarm like locusts and ravage the original question into obscurity. I wish you luck and hope you finally get a good answer to your original question.

 

When I started as an O/O, my reefer trailer was like 10,000 and my truck, a 2000 Century was less than that. There lies the difference. A new ride costs some pretty serious bones. My total investment was about the same as an 18,000 down payment. Only thing I made payments on that 1st year was insurance.
No matter what business you're in, one of the biggest keys to success is to keep your overhead as low as possible. That way you can bank for breakdowns, overhauls and even for a newer truck down the road.
All I'm saying is.... it worked for me.

And now back to your regular programming....

 

Romans612,

I hope you stick around here for a long time,

and keep everyone up to date.

Curious as to the final outcome !!! ......Good Luck !!!!!

 

That's pretty cheap for a new truck, trailer and all the extras.

When was this?

Mine runs about $600 a month.

Pretty close but these days it can be a bit more.

10 months? All 18 tires every year? $400 a tire?

These numbers are ridiculously inflated.

My overall expenses hover aroud $8,000 to $10,000 a month...Total.
But my gross is double that.

These numbers are grossly inflated as well...And confusing to say the least.

But you apparently can not figure out how to efficiently run a trucking business!


My feelings about the whole Fleece/Operator scam:

Leasing is a fools game!
There are far more failures in leasing than in any other aspect of this business.
Some people are successful but it is rare! The large fleet Lease/Operator programs are designed to make the company money and they do not really address the financial needs of the drivers.
You'd better have a good head for business and a really good CPA and a good attorney to read and understand the contract that you will sign.

If you have less than a year in this industry and sign up for a lease...YOU ARE MAKING A HUGE MISTAKE!!!

RULE NUMBER 1:

Never Lease/Buy your truck from the same place that you get your freight from, It gives the company too much control over what is supposed to be your business!


RULE NUMBER 2:

If you have no money and you have no credit and you have no experience...You are not in a position to buy a truck or start a trucking business.
This is a highly competitive, Tough business to make it in even for a very experienced knowledgeable hand.

 

I'd say 95% of lease operators never make the final payment... with virtually no experience in this biz what makes you smarter than the tens of thousands who tried and failed before you came along?

 

I would like to throw my 2 cents in here. even with fuel prices going up ,There is still money to be made. Leaseing a truck from these big companys are what they want, they want the newbei ! They impress them with that big new shinny truck. ........the pit falls, If you dont know much about trucks, the general maint. Not able to fix little things on your own, .....if you cant fix the little things an are not prepared, they will turn in to big things that cost big dollars..... Like Gears said, keep your over head low as possible. Doing most of you maint yourself will save you big bucks in the long run. As for freight prices and your % you are doomed with that big new shinny truck! If you have a family and car payments, you will live on 2 dollar hot dogs an chef boyardee.....The lease purchase is designed to make the big company money. They will resell that truck 6-10 times befor they send it off to be auctioned. ......Think about this, they paid (because they buy in bulk) $80,000 that we would pay $140,000. so think about it l/p is designed for the big companys to make money....not you! they will watch you struggle and try to servive........Its cheaper to buy a used truck make it dot compliant ......No $1500 a mth truck payment will keep you rolling.....look at my avatar, $12,000 over a 1.2 million on the frame , less than 300,000 on the motor.....an i have the title, yes i had to put some wrench time in, fixed a bunch of neglected stuff. Me an the hardware store around the corner have become good friends in the nut an bolt department.....but over all a good stong truck

 

Romans you are a legend..Keep on doing your thing..I'am going to lease purchase with KLLM as well..Cant wait to see ya on the road and start a new business..Just about every old timer in the industry is negative and will try their best to talk us out of doing it but forget them lets tear up some pavement