The devil. aka “lease purchase”

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

  1. MysticHZ

    MysticHZ Road Train Member

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    Here's the fundamental flaw in your plan and most people fail. They go into a lease with unrealistic expectations. Generally because they don't have a detailed and well thought business plan.

    The reality on a lease you will earn slightly more than a company driver ... if you're good. If not you could earn less, alot less.

    Could you make more, possibly. But don't base your business model on numbers thrown out on the internet or by other drivers. And there are some big numbers being thrown around right now.

    Rates are high right now. But that can turn quick. Revenue goes down, but expenses stay the same. You need to budget your business to be profitable during the down times.
     
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  3. Gabe2790

    Gabe2790 Light Load Member

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    I appreciate your input. I am basing earning potential off of seeing pay slips from an o/o, as well as looking at the difference in pay scale between a company driver and o/o or lease driver. You go from around .55 cpm to 70% and as I stated, I’ve seen the pay slips to back up the claim of a substantial difference.
    I am not sure how you can assume to know anything about my business plan or it’s “fundamental flaws”. I suppose I could have chose a better word than “exponentially”, but I like that word; it’s a good word.
    While maybe not an exponential difference in earnings, going from $1500-1700 per week as a company driver, to $7-11,000 per week with the same outfit as an “o/o” is quite a big difference.
    As far as operating out of fear that rates could turn…. Does that mean that nobody should buy a truck, ever? If rates turn, or the market dries up, does it really matter if you can’t pay the bank/leasing company, or the carrier you are leasing from? They are both going to demand payment in the same way if things head south.
    Make no mistake, I am not so delusional that I think I’m going to get rich at this, or anything close for that matter. I am a pretty logical person though, and logic tells me that making more money as a lease has the potential of getting me in my own truck faster than staying on company wages would, even if the carrier makes some money off of me in the process.
    I’m still undecided and looking for another way, but I see it as a tool, a means to an end, a stepping stone.
     
    Last edited: Jun 20, 2021
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  4. blairandgretchen

    blairandgretchen Road Train Member

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    Sorry to hear about the divorce and bankruptcy.

    My advice would be nose to the grindstone and accumulate $50k cash, find a cheap truck and trailer, while rebuilding credit.

    A lot of the success/failure rate that I see is driven by the financial health of an individual going in.

    I’ve watched and helped 2 guys going in that had no CDL experience - zero. Success.

    Things they had in common?

    Stable relationship.
    Financially healthy, low debt/income.
    Good listeners - not argumentative.

    Good luck, whichever way you go.
     
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  5. Gabe2790

    Gabe2790 Light Load Member

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    I’m honored that you chimed in here Blair; I’m currently on about page 65 of your “journey begins” thread. I’ve been trying to soak everything up like a sponge.
    I hope that I have not come across as purely argumentative
    I’m not posting just to seek out people that will agree with me, but when some post comments that don’t consider any pertinent information I feel the need to try and have them consider some details, not to change their minds, but to get their input with all facts considered. Some just see “Lease Purchase” and chime in to say how bad it is without acknowledging any further information.
    I’ve since remarried and have kids- the br should have happened long ago, but I was in a state of denial.
    The fact is there is no way I will be able to save $50k on company driver wages. I agree that would be ideal and that is what made me consider the scenario laid out in this thread. I thought to use the walk away lease to bankroll that $50k you speak of.
    I appreciate you and any further advice would be more than welcome.
     
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  6. Gabe2790

    Gabe2790 Light Load Member

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  7. blairandgretchen

    blairandgretchen Road Train Member

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    Well, you must truly be bored out of your skull by now if you’re 65 pages into my drivel. :)

    I’m not suggesting you are argumentative - just remember that this LP topic is hotly contested, and often driven by Confirmation Bias.

    Minds are like parachutes, they work best when open.

    My path is arguably not the best one, or the only one, or optional to any or all. It’s worked for me, that’s it.

    I’d be interested to see the agreement, and I’d want to see a profit/loss and earnings from guys doing what you’re considering, at the same company. You’ll know by now with me - the BS stops when the figures are laid out.

    Risk and reward, no risk, no reward. No pain, no gain. Consider your family, health insurance, current debt load, etc.

    My situation won’t be yours - wife, retired, older step children out of the house but still dependent to an extent, no debt, business or personal. Clever and honest self analysis is a good start to a business path/plan.

    Let me know if I can help.
     
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  8. Roguefox

    Roguefox Light Load Member

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    The lease purchase has a bad rap in trucking due to some very unscrupulous companies and naive drivers.

    Fact is lots of businesses use leases to their economic advantage. The are several companies right now that have solid lease plans. Like every other business venture nothing is guaranteed.

    There is no guarantee you will make money as a company driver. Pick a crappy company and watch your bank account disappear.

    It is pretty tiring to see people constantly dogging lease purchase plans like they are all the same.
     
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  9. Gabe2790

    Gabe2790 Light Load Member

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    This is my main issue. People want to just throw that blanket statement over all of it.
     
  10. Gabe2790

    Gabe2790 Light Load Member

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    I really appreciate it and will definitely take you up on it. I’ll request a copy of the contract and a few other things and I’ll likely need someone to bounce things off.
     
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  11. blairandgretchen

    blairandgretchen Road Train Member

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    Show me some figures - and I can understand if it’s profitable, or just buying a job.
     
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