swift and the lease purchase

Leasing isn't "throwing your money away." There are significant tax benefits and not everybody wants to own a used-up truck at the end.

 

4 years? Go buy one. Don't have the money or credit to buy one? Time to take some Dave Ramsey classes.

 

One important thing Injun left out is find out how much it would cost you every time you put your leased truck into the shop for repairs and maintenance.

My company truck spent lots of time in the shop.

 

So what r u doin when u pay on the truck fix repairs then turn the truck in and get another one to start the cycle over, everything you fix on the previous truck that would cover under warranty if break again you just waste your money if it happen to the next truck you get.

I'm not saying the idea of leasing a truck period is waste of money, but when you lease to turn it in and lease again that's a waste of money. If you lease a new truck why not pay the truck off, instead of going to lease another truck. If you lease the truck or you own it when it break you still have to fix it.
I don't know about anyone else but I don't want to put new parts on a truck then turn around and give that truck to someone else.
Example. I replace the turbo on my truck in august I have 9 months to pay it off, would it be a smart idea to turn that truck in and start a new lease in 9 months?

 

Listen to Rug_Trucker. He knows everything.

His stuff is so valuable, I had to hide it from myself by placing him on ignore.

 

That logic makes good sense if you understand that you will have a used-up asset at the end and know how to dispose of it. Just keep in mind that one must somehow get rid of that asset at some point in time. Most businesses, including truck companies, lease their equipment for the same reason. Burger King franchisees lease their buildings and much of what is inside, as do print shops, restaurants, retailers of all kinds and sizes, and airlines--not one of them owns the jets you fly in; they are leased. Even people who want a new family car have been leasing for years. It's a better use of capital and does not tie up money that can be used for other things. Are they wasting their money? The truck you lease from Swift's leasing company are leased from a mega-leasing company like GE Capital. Swift does not have title to the vehicle. And when it's used up, the trucking company turns the asset back to the leasing company. By then, the power unit will have almost a million miles on it and the leasing company will wholesale them to folks who want to be owner/operators and not pay much for a truck. You would have to do the same if you hold the title to it.

Continuing to say, in effect, 'leasing is a waste of money' shows a fundamental lack of business insight. No driver should lease without that insight. It is perfectly okay to be a company driver and receive a good paycheck with no risk. Thousands of Swift drivers do it. And, of course, there will always be those who are dead set against leasing for anyone, including themselves and everyone else. Those people will apply their own beliefs to everyone in the population because they think it is a bad idea. So be it. But there are those of us with business insight and "money experience" who are willing to assume the risk and higher rewards for leasing if we want to.

Let us do it and live in peace with those who do not.

 

What sense would it make to make a balloon payment on a truck over 4 years old ? If a person can't buy a truck and become a real O/O they might as well be a company driver with the benefits .
A real O/O can pay a truck off and with the right carrier or own authority get over a million miles out of a truck .

 

If you lease the truck from new it would make sense to pay the baloon payment at he end, because you know the truck, its not like you getting someone else used up truck.

The point you make about paying the truck off, that's the point I'm trying to get across. If you pay the truck off increase your maintenance account, save a portion if not all you was paying in payments, later on dispose of that old truck and go get a better one it would work out a lot better than lease to lease.

Another point is he don't own swift neither does his dad, IEL give you a hard time if you try to path ways without paying that truck off first or turn it in.

 

So if I am saying leasing is a lack of business insight, what do you call paying off the truck and have no truck payments? Increase your maint account, save the money you would pay in payments for that rainy day.

I see guys out with no truck payment taking months off at a time some of these L/O can barely take home time without being in the hole. You can use your maint. Account to cover you when you are in the hole but you can't do that too much because you never know when that truck going to break.

Its hard to compare a one man L/O to a franchise or a trucking company.

Its ok to lease for those who want to lease but when a person ask me why I don't lease a new truck because they are thinking about doing it, I'm going to tell them why "I" don't. If they want to do I have no problem with them doing it, its not my money they spending.

 

Those guys shouldn't be leasing or thinking about being an O/O. If you can't run your business in a manner that allows you to meet your financial goals AND find the resources to take time off - you need to be a company driver.