The Perfect Lease Purchase Contract!

@sheepdog, this is my not so perfect lease purchase contract :

1. Program to HELP driver make BETTER decisions (free training/workshop)
2. A small down payment, say around $2500 or less
3. A fuel card
4. Trucks in the 2006-2010 age range with no more than 550,000 miles.
5. Allow a driver to make changes to the truck, to improve fuel mileage, small improvements of course, nothing that will void the warranty.
6. A walk-away lease
7. Discount on tires, fuel and overall parts.
8. A lease term no more than 3 years but, 2 would be better.

Please note number 1 - I just wonder if there is a company with a program like this.

 

Thanks again SheepDog. Yup, as a whole, this is my ideal lease purchase contract (a lot like yours . I just highlighted number 1 - still wondering if "education" will become a priority.

 

Just ty o help a little on any lp the fuel card has to be open otherwise they are skirting the o.o employee line

 

Just Wanted to get some opinions on this l/p plan:

RAPID LEASE PLAN

Lease Agreement Overview​

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No down payment required
Walk Away Lease
All Tractors have Headache Rack.
Communications Equipment will be provided.
Ownership of Communications Equipment will remain with Hornady Truck Line, Inc
[h=1] [/h] [h=1]YEAR AND MODEL OF LEASE PURCHASE TRACTORS:[/h]

2007 International 9200I Model 72” Sleeper (Non-APU Units)

Sale Price: $40,000.00 + $1,500.00 equipment charge@ 10% Interest

[h=1] LEASE AGREEMENT PAYMENT TERMS[/h] 36 months agreement (150 weeks) at $320.51 per week
Payment plan has two skips built into the plan per lease year in case of
breakdowns or vacation time. Total cost with principal and interest
$48,076.50

2007 International 9200I Model 72” Sleeper (APU Units)

Sale Price: $40,000.00 + $1,500.00 equipment charge + $1,200.00APU@ 10% Interest

[h=1] LEASE AGREEMENT PAYMENT TERMS[/h] 36 months agreement (150 weeks) at $329.78 per week
Payment plan has two skips built into the plan per lease year in case of
breakdowns or vacation time. Total cost with principal and interest
$49.467.00


2009 International 9200I Model 72” Sleeper (APU Units)

Sale Price: $57,000.00 + $1,500.00 equipment charge + $1,500.00 APU@ 10% Interest

[h=1] LEASE AGREEMENT PAYMENT TERMS[/h] 48 months agreement (200 weeks) at $364.29 per week
Payment plan has two skips built into the plan per lease year in case of
breakdowns or vacation time. Total cost with principal and interest
$72.858.00.








2011 Kenworth T-660 72” Sleeper (APU Units)

Sale Price: $85,000.00 + $1,500.00 equipment charge + $2,000.00 APU@ 10% Interest

[h=1] LEASE AGREEMENT PAYMENT TERMS[/h] 48 months agreement (200 weeks) at $537.32 per week
Payment plan has two skips built into the plan per lease year in case of
breakdowns or vacation time. Total cost with principal and interest
$107,464.00









































[h=2]MAINTENANCE[/h]

​

The LESSEE will be responsible for repair and maintenance on the equipment including the communication keyboard system during term of lease agreement. Maintenance or repairs on any of the equipment including the communication equipment keyboard must be authorized and coordinated through Hornady Maintenance.

A Maintenance Escrow IS REQUIRED. As with the Lease payments, two skips per year have been built in the Maintenance Escrow Fund. The payment is deducted weekly at $175.00 for 150-week or 200-week term of the lease. At the end of the lease agreement, any monies left in the Maintenance Escrow fund will be returned to the Lessee. The Maintenance Escrow Agreement covers everything over $250.00 except Accident and Cargo Claims. Lessee is responsible for the first $250.00 of any maintenance cost including PM Services. The $250.00 can either be paid for by the Lessee at time of repair or maintenance or be deducted from their settlement.

[h=4] [/h] [h=4]ONLY ORIGINAL EQUIPMENT ON THE TRUCK AT TIME OF LEASE[/h] IS COVERED UNDER MAINTENANCE AGREEMENT
[h=2]UPGRADES AND ADD-ONS[/h]
Upgrades and/or add-ons will be allowed only with the approval of Hornady Truck Line, Inc. in writing and all maintenance and upkeep of upgrades and/or add-ons will be Lessee responsibility above the maintenance agreement. Any upgrades or add-ons will become sole property of Hornady Truck Line, Inc until the lease agreement has been completed. If the Lessee decides not to complete the lease agreement, all upgrades and add-ons will be considered property of Hornady Truck Line at no cost to Hornady. Proof that the upgrades or/and add-ons have been fully paid for will be required before authorization will be given for the installation to begin.

​

COMMUNICATION EQUIPMENT

​

Hornady Truck Line, Inc. retains ownership of the communications equipment. If the unit is lost, stolen or damaged beyond repair, the Lessee will be responsible for the replacement cost of the unit.


















The following table shows some of the “estimated” known expenses that will occur on a weekly time frame. Theses monthly figures are for illustrative purpose only. These figures in no way represent all expenses that may be incurred.

​

[TABLE="class: MsoNormalTable"]
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[TD="width: 596, bgcolor: transparent, colspan: 3"]

WEEKLY SETTLEMENT DEDUCTIONS​

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WEEKLY​

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[TD="width: 310, bgcolor: transparent"] LEASE PAYMENT( including equipment charge)
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$ 320.51*​

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Based on 2007​

Non APU tractor​

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[TD="width: 310, bgcolor: transparent"]

BOB-TAIL INSURANCE​

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[TD="width: 121, bgcolor: transparent"]

$ 7.68*​

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$ 32.00 monthly​

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[TD="width: 310, bgcolor: transparent"]

WORKER'S COMPENSATION​

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$ 37.08​

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$ 154.50 monthly​

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[TD="width: 310, bgcolor: transparent"]

PHYSICAL DAMAGE INS​

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$ 33.98*​

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$ 141.60 monthly​

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[TD="width: 310, bgcolor: transparent"]

COMMUNICATIONS FEE​

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$ 15.00​

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$ 60.00 monthly​

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[TD="width: 310, bgcolor: transparent"]

General Escrow​

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$ 40.00​

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$ 1,000.00 Total​

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[TD="width: 310, bgcolor: transparent"]

Accident /Cargo ESCROW​

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$ 100.00​

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$ 3,000.00 Total​

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[TD="width: 310, bgcolor: transparent"]

MAINTENANCE ESCROW​

[/TD]
[TD="width: 121, bgcolor: transparent"]

$ 175.00​

[/TD]
[TD="width: 165, bgcolor: transparent"]

$ 8,750.00 Yearly​

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[TD="width: 310, bgcolor: transparent"]

COST OF TAG​

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$ 25.00​

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$ 1,300.00 Yearly​

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[TD="width: 310, bgcolor: transparent"]

ROAD USE TAX​

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$ 11.00​

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$ 550.00 Yearly​

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[TD="width: 310, bgcolor: transparent"]

PREPASS​

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$2.88​

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$ 144.00 Yearly​

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.​

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* Weekly Lease Payments and Insurance costs are based upon the value of the truck.
​

Independent Contractor Program:​

[h=1]Item Pay and Settlement[/h]
[TABLE="class: MsoNormalTable, width: 6"]
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[TD="width: 192, bgcolor: transparent"] [h=5] [/h] [h=5]Pay [/h] [/TD]
[TD="width: 432, bgcolor: transparent"]
Contractor’s compensation is based on Adjusted Weekly Gross Revenue produce by each unit leased. Contractors are paid 70% of this revenue.

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[TD="width: 192, bgcolor: transparent"] Fuel Surcharge
[/TD]
[TD="width: 432, bgcolor: transparent"] All fuel Surcharges are passed to the Contractor at 100% of what the customer is charged.


[/TD]
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[TD="width: 192, bgcolor: transparent"] Tarp Pay
[/TD]
[TD="width: 432, bgcolor: transparent"] If customers are charged extra for tarping, this pay is passed to the Contractor at 70%.


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[TD="width: 192, bgcolor: transparent"] Stop Off Pay

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[TD="width: 432, bgcolor: transparent"] Stop Off pay is passed to the Contractor at 70% of what the customer is charged for the extra pickup or stop-offs excluding the first pickup and final stop.


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[TD="width: 192, bgcolor: transparent"] Detention Pay
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[TD="width: 432, bgcolor: transparent"] Detention is paid only if and when the customer pays. Contractors receive 70% of what the customer actually pays. In order to receive detention time, Contractors or their drivers must follow our guidelines on what must occur when at the customers.


[/TD]
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[TD="width: 192, bgcolor: transparent"] Reconsignment Pay
[/TD]
[TD="width: 432, bgcolor: transparent"] If a load is reconsigned, Contractors receive 70% of what the customer is charged for the reconsignment.


[/TD]
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[TD="width: 192, bgcolor: transparent"] Settlement
[/TD]
[TD="width: 432, bgcolor: transparent"] We offer two methods for the Contractor to receive the weekly settlement. We offer direct deposit and/or Comdata bank card. Whatever method is chosen, a statement will be mailed weekly showing details of what was paid and deductions withheld. These statements are mailed weekly to the Owner of truck.

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[TD="width: 192, bgcolor: transparent"] [h=5] [/h] [h=5]Trip Advances[/h] [/TD]
[TD="width: 432, bgcolor: transparent"]
Contractor can receive limited weekly advances. Fleet owner’s permission will be required for a fleet driver to have access to the advance.


[/TD]
[/TR]
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[TD="width: 192, bgcolor: transparent"] [h=5]Fuel[/h] [/TD]
[TD="width: 432, bgcolor: transparent"] Hornady has a fuel card that is available to the Contractor. If the Contractor uses Hornady fuel network, Hornady’s fuel discounts will be passed on to the Contractor. Fuel Discounts are available only if fuel network is used.

[/TD]
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[TD="width: 192, bgcolor: transparent"] [h=5]Fuel Taxes[/h] [/TD]
[TD="width: 432, bgcolor: transparent"] Contractor is responsible for all fuel taxes. If Contractor uses Hornady’s fuel card and fuel network, Hornady will include the leased unit on the quarterly IFTA Fuel Tax Report.

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[TD="width: 192, bgcolor: transparent"] Maintenance Account
Repairs, Breakdowns
[/TD]
[TD="width: 432, bgcolor: transparent"] Voluntary and Highly recommended
Contractor or Owner is responsible for all repairs and maintenance cost of their truck. If the Contractor has a repair that is needed, Hornady will use our purchasing power to help the Contractor receive the best and lowest prices available. If Hornady has the item that is required in stock, the Contractor may purchase it from the terminal shop.


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[TD="width: 192, bgcolor: transparent"] [h=5]Tolls[/h] [/TD]
[TD="width: 432, bgcolor: transparent"] Contractor is responsible for all tolls.



[/TD]
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[TD="width: 192, bgcolor: transparent"] Inspections
Required
[/TD]
[TD="width: 432, bgcolor: transparent"] A DOT Pre-lease inspection is required before the lease is signed. We do offer a pre-inspection that can be performed at the Birmingham terminal. If any problem is found, it can be corrected before the lease is completed. After the lease is signed, we require all Contractors to have an inspection completed every 75 days. All DOT Safety equipment must be in proper working order at the time of any inspection.


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[TD="width: 192, bgcolor: transparent"] Fines
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[TD="width: 432, bgcolor: transparent"] Fines are the Contractors’ responsibility.


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[TD="width: 192, bgcolor: transparent"] [h=5] [/h] [h=5]Loading/Unloading[/h] [/TD]
[TD="width: 432, bgcolor: transparent"]
While no additional pay is offered for loading or unloading, Contractor normally just places or removes the securement devices and tarps. No Actual Loading or Unloading of Freight is required.


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That's essentially what my deal is with my carrier. It's the only reason I sold my paid-for truck and bought the one I have now. Unfortunately, they don't do that now that RR took over.

 

For those who are also wondering, its no credit check, walk away, zero down, $1 buyout..
So what do you think about the l/p program??