Thinking about going lease purchase..any feedback appreciated

First get speed out of your head, the math doesn't work, slowing down will reduce you fuel costs $6000 to $11000 a year. Here's the problem I have with leasing or buying a new truck. The first two to three years not much problems. In the fourth year you start to have four figure repairs, and still have the big payments. Plus the reoccurring repairs on the emission junk the truck comes with.

 

No. No and no. Get some more time under you. Talk to people. Get to know trucking. Learn. Learn what you can about trucks. Have some cash for your maintenance fund. Lease purchase is not get rich quick. More like if you don't know what you're doing its a get broke while working harder scheme. I can't stress this stuff enough. You're not just a trucker anymore. A business owner. And you have to learn how to think like one. Good luck and give it another year or two. You'll be glad you did.

 

I don't thank the emission stuff will ever get any better. I'm watching LNG to see if in takes hold.

That would be the only way I would buy new. I bought a old England beater truck. A 2003 century. It was the last non EGR truck the company had. I spend enough on maintenance to pay payments on a new truck, but I only paid $12000.00 for it and paid it off in a year.

The way I look at it is you are going to pay about the same amount to maintain a truck no matter how new it is. Ether it's the big payment or high maintenance on a older truck. The difference is you get out from under the interest payments faster with a older truck, but the risk of catastrophic failure is higher.

As far as fuel mileage goes check out the scan gauge at Letstruck.com, It's under $200 and will teach you how to get better mileage. The rule of thumb was keep it at 55-60 MPH, now people are running 55-60 on the flats and light fuel on the throttle down hill to the speed limit and up hill. I was getting 8.5 out of my truck last year. It has dropped to low 7s. I think I need to change out the injectors.

 

I see Prime has got them another victim ready for the fleece deal.

 

Plus start running your company truck like an O/O. Keep track of the expanses it takes to run the truck. Start watching fuel prices. Learn how to prepare a IFTA (fuel tax) return. Get in the habit of writing down mileage at state lines. Try to reduce the mileage in your routing.

 

With one year of experience do you really think you are qualified to train new students? Training students is something you should do if you have a passion for it.

That statement says you would train students for the extra money. Which I assure you is the wrong reason to be a trainer. Your desire for the extra money would be to the detriment of your students and their future success.

I think as others have already said you should wait a couple more years and really understand the business and the difference of being a owner operator versus a "driver"

 

Hell Prime is one of the least worst. There's Buell and Hurricane and CRE. Buell and Hurricane being the absolute biggest rip offs there are. Prime is up front with how they will take you for a ride. They tell you. You're renting the truck. You won't own it. Maybe some appreciate that kind of honesty. Maybe they don't know better.

 

I started as a lease driver a out 3 weeks ago. I have 2 years driving under my belt. Here's what I'll tell you from my own personal experience:

1. I'm leasing a 2014 Freightliner Cascadia Evolution. Detroit DD15. Everyone is right - speed kills your wallet. First week, I got excited and ran 70 everywhere. Got 6.2 mpg average. The last two weeks, I have been running at 61, and all of my loads except one were over 40,000. Getting 7.8 mpg average, and that's calculated directly, not from the lying dash computer LOL. Definitely keep the speed down.

2. You are no longer a driver. You are a business owner. You are no longer chasing miles. DO NOT CHASE MILES. This week, I have grossed $3800 and have run exactly 2,485 miles. It's very unlikely that I'll ever cross 3,000 miles in a week anymore, because I'm chasing revenue per mile. Why drive 3,000 miles and work yourself to death when you can run 2,500 and make a decent living?

3. This is not a get rich quick plan. I'll admit that even I had stars in my eyes about making those $2000+ weekly paychecks. I'm willing to bet I'll hit that every now and then... But not every week. However, I am taking home about what I did as a company driver, sometimes a bit more, and I pick where I go and what I haul. I'm also driving less miles to make what I did as a company driver. But just be aware that you're not about to walk in and take home $80,000 a year - expect to make the same as you did as a company driver with more freedom.

4. DO YOUR HOMEWORK. There are a few good lease purchase plans out there, but they are very hard to find. I'm happy with the one I'm on, I think everything is reasonable, considering that the finance company is taking a huge risk on someone like me with mediocre credit and no down payment. Also, be aware that you still will have some restrictions, even if it is "your" truck, because its really not until it's paid for.

5. My one regret is not learning more about the industry first. Turns out that there is a reason why freight going to CO and FL pays so well... Cuz good luck getting out! LOL. I know that now, but a bit more learning and preparation might've saved me some fuel costs associated with going to "consumption only" areas. And I've still got so much to learn.

6. Doing this while trying to support a family is a huge risk. I'm single, no wife, no kids, no house. I don't care how long I'm out. My only bill is my cell phone. I can survive off of the cash advance if I really need to. Be super careful about what you're planning if you've got bills to pay at home. Discuss it with your family, and be honest about it. There will be HARD times your first few weeks.

7. Be ready for annoyances and breakdowns. The heater on my APU hasn't worked since I got the truck. Company shop won't touch it due to warranty, and the Freightliner at home told me it would be a 4 day wait to get it fixed. So right now I'm idling every night, at a cost of over $300 a week. So, I've had to eat cheaply (Thank God for Ramen noodles LOL) and sacrifice a few luxuries while I work out a plan to get this fixed while minimizing downtime. But be aware that even if its a brand new truck, you'll run into issues, and it will cost you money.

That's all I can think of right this minute because it's nearly 1am. But seriously, learn all you can about the industry and do your homework. There are plenty of lease programs out there that are designed to put you out of business, or at least not designed for you to succeed. You need to find the diamond in the rough, even if it takes a few months of research.

Good luck, stay safe, and keep the rubber side down.