For a 48-month note on $102,875 at 8% financing, payments are $579.57/wk. For simplicity, I will round it to $580. After that 48 months is up, you would have paid $120,640 total for the truck and, yes, have the title in your hand.
Swift leases you the same truck for $525/wk for the same 48 months, bringing your total amount paid to $109,200.
If you have not run over mileage, your residual, as you stated it, would be roughly $49K. Subtract the difference between total outside financing and your total lease payments from that $49K: $11,440 and subtract that figure from your $49K residual: $37,560 is the total difference paid for that same truck.
If, say HeavyDude bought it, paid it off in 48 months and then sold it to me, I'm sure he takes care of his equipment, so he's going to want more than 60K for it, especially if it only has 528,000 miles on it, the maximum you can put on your lease truck before paying that 9cpm over-mileage thing. A Cummins motor with just over 500K miles on it is just a pup, barely even broken in.
The total amount paid for HeavyDude's truck will be upward of $180K after he paid for it and then I paid for it too. (Of course, he's pocketing that $60K, but he gets to after footing the finances for it for 4 years....all you're doing now is renting that truck from IEL while the good name of Swift is backing the note. In HeavyDude's case, it's his name on the line.)
After your lease is up, you have the option to buy a 4-year-old used truck you would be buying from a truck lot for $60K or more, for $48K and change.
Doesn't seem like such a bad deal to me.
You get to put all the miles on it, so you know exactly where it's been, you control the maintenace, you're making money off it in the interim, your payments are lower than if you had gone on the open market for it and you get the option to purchase a 4-year-old used truck at the end of your lease for less than you would pay on the open market.
Do you think Swift and IEL are charity organizations with 503C registrations? They're not. They are in it to make money, same as you. It's called business. If you take care of your equipment, you will end up with something with some value to it. If you "beat it up" as you say, you will end up with a clunker worth less than that old Ford Escort my nephew sold last year. The choice is yours...same as signing that contract you didn't read.
Yeah, I know my math won't make a lot of sense to a lot of you, but it makes sense to me...
Swift Transportation and their Lease Purchase Plan
Discussion in 'Report A BAD Trucking Company Here' started by jakebrake58, Jan 20, 2011.
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Yeah...I think most of us are aware Swift and IEL are tied as tightly together as Prime and Success Leasing are. That's why I said it's Swift's name on the line for those truck notes and Swift who pays when the person who signed the lease defaults on it.
It would be like going to HeavyDude (sorry, guy...you volunteered) and expecting him to put his name and reputation on the line and then also expecting him to basically pass the truck on to you without making a dime off it save for the runs you made under his authority. I doubt he would do that, if he's any kind of businessman at all.
Regarding this idea some have about taking the truck somewhere other than Swift: I'll borrow HeavyDude again...He put his name on a truck and is backing the note. He's "renting" it to you for less than you would pay on the open market because it's his good credit you're benefiting from. Now, you've decided you not only want the truck signed over to you at the end of the contract for what he's paying for it, you want to eliminate any other revenue he might make off his risk by removing it from his fleet. So now, HeavyDude has assumed all the risk, but he will get no benefit at all from it.
Yeah, THAT makes a lot of sense.... -
i got your point and like i said i have no problem with swift making some money on backing the note for some one that probly can't get a truck on their own...
and swift not taking on any outside trucks ( atleast when i was their they stopped doing it for awhile they may be allowing it again) so the only way they can have contractors is thru their lease which i don't agree with.. -
First of all he states that he ran 18,000mi w/o any log violations,& turns around next paragraph & states that he he had one log violation. Contradicted??..... You say swift paid $83,000 for the prostars then leased them for $102,000 & state that they charged 150% more than they paid for them. I don't consider myself an expert but the $$ difference surely is not 150% more,that would be more than double what they paid for.
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thanks for this, oddly i understand it all.
Injun Thanks this. -
Orientation Again
I wish I could have waited
Before going off to orientation again
But I just can't find that good company
You know how it is, my friends
Here I go
I'm off to orientation again
Orientation again
I last about 2 days and I'm off down the highway
They pretend to be my best friend
And claim anything that has to be done will only be done my way
But I know it won't be long and it'll be only their way
So is it any surprise when I say...
Orientation again
I wish I could have waited before going off to orientation again
I find every company is the same ol same ol because everywhere I have been
I wish I could have waited before bein' off to orientation againKing_Free Thanks this. -
Truckstop bound and down
I'm unloaded and now just sittin' around
Gotta go do what my dispatcher swore up and down
would never be done
I've got no where to go
And a long time to sit there
I'm truckstop bound now watch me go and sit
I took a run once from Long Island
To the great San Francisco Bay
But that was the only #### run I got
In that entire month of may
But I gotta keep singin' this tune
Because it was the same ol' crap in June
Why did I ever go to that over-priced truckin' skewl any-####-way?
Truckstop bound and down
I'm unloaded and now just sittin' around
Gotta go do what my dispatcher swore up and down
would never be done
I've got no where to go
And a long time to sit there
I'm truckstop bound now watch me go and sitKing_Free Thanks this. -
Tip:
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PainNdaNeck Thanks this.
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