Stuck in a lease with a truck that is needing constant repairs.

I'm not trying to be funny but I don't understand what you are getting at.

You signed an agreement with a carrier for a lease purchase. They lent you money. You have to pay them the money they lent you back. If you do not pay them back they have every right to keep your last settlement and escrow and come after you for the rest.

You can't just give them the truck back and call it even, if that is what you are suggesting. If you sign a new lease you are back into the same situation again.

When your lease ends, you don't have ownership of the truck? I thought that was the point of lease purchase.

 

Yeah Dino, I am confused too, if it is a lease purchase, and the truck is defective, then I would think there is a lease termination clause based on the truck's not being able to be dependable and too costly to run.

 

Guarantee there is nothing in the lease that says you can terminate because it's not dependable or too costly. That wouldn't benefit the company in any way at all.

 

Is it a Paccar engine by chance?

 

Yes the Lessor will keep any moneys owed by you the Lessee at the end of the lease agreement, if you have a negative balance.You do understand that leasing does not entitle you to ownership unless it is stipulated in the lease agreement. It is just like renting an apartment or house when the lease is up , you can renew,or walk away...except you pay for all associated cost of the equipment during the life of the lease. Ownership at the end of the lease usually requires you to pay the fair market value (balloon payment) of the truck to obtain the title. There are some lease agreements that are set up so that the balloon payment is minimal, but that would be spelled out in the lease contract that you read and signed.

 

I'll take the lack of a response as a yes.

Paccar engine's = trash IMO

So many truck owners I know have electrical related emissions problems and every mechanic I know speaks poorly of them for their emissions issues. Not just that but the MX13 has no power even if they're going faster than me they're in my way everytime on a hill.

If you've got a Paccar engine OP I'd leave that POS for dead and get yourself a DD15 so you can stay out of the shop and make some money.

 

Must have Balloon payoff?
Don't understand those, Where I'm at last lease payment you get your title.

 

Again, IT IS ALWAYS A BAD IDEA TO LEASE A TRUCK FROM THE SAME COMPANY YOU DEPEND ON FOR YOUR REVENUE. I'm of the opinion that the whole company lease operator scheme should be illegal but at this time the best I can do is print it in all caps.

 

I was in a similar situation... I was leased to USA for 2 months and my truck broke down... they loaned me $1000 to fix it... I paid $500 and when I left them they took the other $500 off my last check... now if you dont have any escrow or any revenue for the last check then they do have the right to garnish your wages on your next job