The devil. aka “lease purchase”

Discussion in 'Lease Purchase Trucking Forum' started by Gabe2790, Jun 16, 2021.

  1. Gabe2790

    Gabe2790 Light Load Member

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    Reading through the threads in this section I see many that strongly caution against the company lease option brings some questions to my mind.
    If someone is lacking in any given area that would be needed to finance a truck on their own, why is it the end of the world to get into a lease purchase program if doing so opens up a whole new level of earning potential?
    For instance: company driver for a regional flatbed company that pays around .55 cpm.
    An L/O or O/O with the same company makes 70% of line haul.
    To me this seems like a huge swing in earnings, and worth entering into a lease with the carrier if you don’t have the option of financing a truck on your own at the moment.
    Please don’t take this as argumentative; I am just stating what I am seeing as I ponder this decision. Please feel free to tell me what I’m missing.
    Sidenote: carrier in the example given offers a “walk away lease”. I have not seen the terms.
    Thank you!
     
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  3. D.Tibbitt

    D.Tibbitt Road Train Member

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    Just understand , everything is on you when u enter into a lease. Watch your back and who you talk to about your freight. Dont do a lease purchase unless you can book your own freight and not tied to a dispatcher... I think a lease purchase is a great way to learn the business with very little financial risk. But it has to be the right terms. If you have a dispatcher/agent that if you told them to go #### themselves , would you get fired? If yes, it is not the right terms. You want to run your own show and learn the business. Anything else is not going to be in your favor and will most likely fail
     
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  4. Gabe2790

    Gabe2790 Light Load Member

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    Thanks for the response D.
    Im assuming that the risk with a dispatcher is that they control your fate? Piss them off and start getting bad loads or less loads?
     
  5. D.Tibbitt

    D.Tibbitt Road Train Member

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    Yes exactly . how much money you make would be tied to them . its important to control your destiny when running a business
     
  6. Flat Earth Trucker

    Flat Earth Trucker Road Train Member

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    Here's a few good reasons NOT sell your soul in order to own your own truck.

    I have two favorite clauses in the contract that Dave presents: the first is the "Screw you, we get our money no matter what" clause.

    This clause basically states that the motor carrier receives payment regardless of whether or not your truck broke down or no freight was available.

    Can't pay your rent or feed your family? Too bad. Receiving our payment is more important to us than you living or dying.

    The second is the "Give up your rights" clause. Most likely illegal, this contract requires that you waive your right to a jury trial in case of a lawsuit.

    These filth pigs know that if their evil doings ever come to light by way of a jury trial, they are sure to lose.

    As Dave suggests in another video, if you want to buy your own truck, then secure a loan through your bank because these lease purchase contracts always have an angle that protects THEM.
     
    Last edited: Jun 17, 2021
  7. MysticHZ

    MysticHZ Road Train Member

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    Yep ... because if you break down or there's no freight the bank will forgive your payment until you can make good.
     
  8. shooter19802003

    shooter19802003 Road Train Member

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    What bank are you dealing with?
     
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  9. Rideandrepair

    Rideandrepair Road Train Member

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    That’s just the Bank I’ve been looking for. Sign me up.
     
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  10. Rideandrepair

    Rideandrepair Road Train Member

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    Better to get your Own financing, and find your Own Truck. That way, if the Company you’re Leased to goes sideways on you. Move on. Plenty of Companies with fairly honest deals. Plenty of work, and equal respect. Too many strings attached to Lease purchases. Too risky. The horror stories go way back, over 30 years. The idea that a Company is going to do all the footwork, invest in you, and you’ll reap the benefits, without any risks, simply isn’t true. There’s much easier ways to get a Truck. Even at a high interest rate. You’re better off, as long as you can pay extra on the loan. A little homework, you can make it happen. Just make sure you understand everything in the fine print. Simple interest, no pre payment penalty terms. Even a 23% interest loan, paid off early is better than a Lease Purchase. IMO. There’s no free ride, but there’s other ways to get into Business without a lot of cash upfront. Not Ideal by any means. But compared to the other options. When you got nothing, you’ve got nothing to lose.
     
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  11. markealy

    markealy Medium Load Member

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    Go ahead and lease through a 3rd party take the to % carrier don't lease @1.05 plus fuel surcharge you can make great money there is no other business where all you risk is time its a TURN KEY OPERATION
     

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