The average cost of a full-service lease

I pay Penske 600 a week plus 12 cpm when I rent a spare

 

Boss is paying $3200 plus 7 cpm for new Volvo’s. Full maintenance lease.

 

Which is $227,000 on a 5 year lease based on 100k miles per year.

A lot of those leases include a residual pay out at the end too.

The other thing those leases will include, depending how they're structured, is a yearly ascending cpm rate.

 

Yup, not cheap. He did it as Volvo around here has a some what slow service department. With the full service lease they guarantee back on the road within 24 hours, or they supply him with a replacement truck until his is up and running.

 

I looked into it a while back. Evidently it matters how long that you have already been in business. When I first went into business I looked at We-Lease and I had no business experience or credit so they wanted $8,000 down, $1,000 a week and a certain cpm for maintenance.

These places like We-Lease, Ryder, Penske all require at least 1 year in business for a full service Lease. Renting a truck to go down to Joes house and back doesn't require anything except a CDL. They are not gonna let you just waltz right in there and take on a Full service lease without some form of payment. You show up with $15,000 cash in hand I'm sure they will forget about that 1 year BS.

Look I'm not trying to burst your bubble but I have been there. You can take $15,000 and invest in something far better than trucking. Trucking today is flip-flops, Tank Top, Automatic Trucks, and see who can drive the rate to bottom the fastest.

 

Tec Equipment, which is a fairly large Volvo/Mack entity, is not interested in one, two man operations when it comes to their full maintenance/lease program.

 

Considering new trucks today cost $150-180k or more. When you add in maint, repairs, tires, etc. $227k is about the same a new truck would of wound up costing anyway. (But then he would have owned and had for trade or sale)

 

I have been considering going to full service leasing too it looks like even if it costs an extra 7 thousand a year it sure does take a lot of risk out of the equation