Trans Am lease

Your post is flawed from the beginning to the end.I will address only the most blatantly incorrect assertion,that being the "bound to one company til the unit is paid off" and then you base your opinion on others that you have known meaning that you can not actually speak from experience,rather having to rely upon others that could not make a L/P work for a multitude of reasons.NONE of which are your own.You have no experience to base your matter of factly post on.I do not either but i have not posted such arrogant assertions nor have i claimed to know all about something in which i have not personally been exposed to.
There are several lease options out there that will allow an individual/driver to judge whether or not he can indeed make it as an O/O in today's market w/the jb hunt deal coming to mind initially.They require a mere 90 days w/a walk away policy.IF one has not fully determined if being an O/O is for him,then perhaps another 90 days is a consideration.If at that point one has determined whether or not an O/O's way of life is the ticket,walk away cleanly or sign up for the duration. What is six (6)months out of a driver's life when making such a potentially life altering decision? Then consider the economic times and if one is even remotely successful during the first 180 days,then by all means take the plunge.By then,credit worthy or not,that driver that experimented should have a down payment saved up for the traditional way of becoming an O/O or stay where they are and chance the outcome. Regardless,hopefully by then the economy will have revved up and freight will pick back up and the companies that have been stagnating drivers in their lease deals will surely open the miles on up for all involved to make the money.Reviewing the stock market,most all of the big companies have had to do some realigning which equates the need to make some money which translates into a WIN/WIN for all drivers,both company and O/O IMHO. Obviously,the economy is the key.Therefore,WHY plop down a bunch of cash at a truck dealer when no one is assured of what lies ahead? Common sense tends to lead the way in this scenario,from my perspective,and a walk away lease can help determine IF a driver is capable of making it as an O/O.In other words,why risk that cash down payment during such risky times? Especially considering the new administration about to take over w/the socialist views.Buy a truck and the bottom absolutely falls out.Hopefully not,but one never knows.I am thinking that this time next year we will all know how the economy will be and a truck purchase the traditional way would make more sense if all is well.
There are plenty of negative outcomes out there regarding the lease purchase deals but there are probably just as many positive ones.Those are rarely posted because others might even challange them on their success.The short time i have been on this board i have seen the pattern-it is almost as if most would rather not see someone else succeed at something that they could not.
I ALSO AGREE W/THE ONE POSTER regarding that supposed driver of 14 years not knowing about the equipment he is leasing.that made no sense whatsoever.IF i am leasing a truck,you can be doggone sure i am going to know every last detail there is to know about the equipment i am now responsible for.Heck,all that lease dude had to do is look at the engine spec plate as he is checking the oil and everything pertinent regarding the engine is right there-engraved into a plate that can't be washed off.Again just MHO.
Please don't hold back.Jump on my post.You apparently know plenty and I can always learn.
allnite

 

08 model I mean.

 

Hm k

 

Hmmmmmm K

 

An informed rebuttal amazingly similar to another right down to the cartoon head.
I was looking forward to you addressing my post point by point.

An informed rebuttal amazingly similiar to another right down to the cartoon head.
I was looking forward to you addressing my post point by point.


-I can only assume that,considering the economy as it stands right now and with no idea as to that which the immediate future shall bring (barack hussein obama/socialist minded government-not that he will be able to implement all of his agenda for the sole reason our government is basically broke but you never know),a driver needs to jump head first into a long term lease purchase w/o the capability or knowledge necessary to run a business OR that a driver should mortgage himself up to the eyeballs w/a dealer bought truck w/o the capability or knowledge necessary to run a business as opposed to getting his feet wet ALL THE WHILE learning of running a truck as a business by using a 90 or 180 WALK AWAY lease? As the two of you put it- hmmm k.Hey,by putting it that way you must not disagree,you just may not agree, so I'll assume that you do not for the sake of a good argument.


-I wish each of you the best of luck.One of you has already failed,regardless of why or how-you failed (as ascertained by your posts in this thread) and I have no idea about the other.I must disagree(i don't know if i do because you did not declare me to be wrong) w/your philosophy of starting a transportion business and apparently you disagree w/mine yet you do not rebutte other than by using less than a complete sentence.I was truly expecting my post to be shot down point by point.Since it has not been,I'll continue maintaining my perspective as I have no idea if it is flawed or not as neither of you nor anyone else for that matter,have convinced me I am flawed in my ideology.I am needing to be corrected/advised as I too am looking to lease purchase and do not want to jump into the wrong contractual agreement or w/o any real knowledge of running a truck that is mine especially during this slumping economic period. Forget that I have 17 + years at driving a truck-IT WAS NEVER MY TRUCK.I drove them as if they were mine and knew every detail about each down to the tire size/engine hp rating at whatever rpm,maufactuer and rear end ratio,wheelbase,transmission type, blah,blah,blah, but alas they were not.It is a different life owning a truck. You must have an owner's mentality and that is a learned behavior. One does not just start out knowing everything about owning a truck regardless of how long one has been driving IMHO.


-What is wrong w/a short term-walk away lease? You only fail IF you do not work(obviously you do not start in an already worn out truck-lets be realistic here and get something warrantied) and at lease end,you walk away knowing the areas that you are weak in and your strong points as well.In 180 days one learns plenty.Try it another 90 or 180 days and learn by trial and error. Then if you are ready to try again whether via traditional financing or another lease purchase,you enter much more informed and business oriented than the first go round. One may decide that owning a truck is not for them and continue being a company hand that is adept at running a truck not owned by him,hopefully leading to bonuses and all that good stuff.
-Either way you come out a better amd more informed driver.

 

Here you go
eagleone

 

Nope just tired of discussing it everyone thinks lease is a no no
SO i just ignor it from now on.Many are making money with it and many are not its like that with everything.Ive talked to MANY lease guys some are making it good some are driving for pennies.

Far as motor etc I really dont care what it has long as it runs and last ,I am NEVER planing on owning the truck When and if I make it till then you think id take truck over 15-20k? hm no ill take the money .if its good enough to last 4 years ill take a new lease and pocket the money.

I am planing to train as its same as everywhere the more miles you do the more you will make so why not train.I think trainers will make more then if I got the wife on and we ran team why? because with a trainer they have vested interest.

Lastly with lease you got more options noone though of fleet lease?Get a driver that doesnt want to lease at first because he is scared well you hire him in your truck you get 4-5 of those you do the math.

Lastly Ive been here 14 years I got a school dip to prove it.
Pulled flats ,box,refeers, cars thinking before I quit ill try bulls.
If you go out and buy a truck right now your nuts you get no loads the bank doesnt care you still have to pay yea with lease I do to but they will make sure you at least pay the truck
The bank you give the truck back you just ####ted your credit.
The lease 2 weeks walkaway not sure why you say 90 days.
your truck breaks like mine did last year I got rep's to prove it 27k in total spent on my parking lot when it dropped the motor.
month later 1200 in washington state for a air bag you break down on the road get the gel out they fixing to stick it to you.
2 weeks later 520 bucks on generator .
the same week 1k from peterbuilt for bs they didnt fix.
#### ads up on your on and when you got noone to back you up you better have a good credit line or deep pockets .

Now on your own how much higher is ins? fuel? all the bs I get alot cheaper in lease yea I wont get rich but at 84 cpm with FSC you can make a decent living with 3200 miles you will clear about 1000-1300 depending on how you drive and what you do.
You drove 17 YEARS! and no clue what it cost to maintain a truck you never kept of with rep's for anything from breakdowns to fuel?
Never asked about ins?

Anyway I am tired of discussing lease I am not here to be the protector of lease ops if you all thinks it will fail dont do it.
Doesnt bother me in the least but if I am going to drive I am going todo what makes me the most and right now times are hard and you got few choices. lease op's in general will make more then a company driver.
They can fail I know this to hell next week I could be looking for something else I am going to try it and if I make money ill stay if not I know where the door is I dont give 2 ##### about 90 days I Am here for money.
WIsh yall luck

 

Dont see alot from this guy on transam.

 

Quote allnite;
-What is wrong w/a short term-walk away lease? You only fail IF you do not work(obviously you do not start in an already worn out truck-lets be realistic here and get something warrantied) and at lease end,you walk away knowing the areas that you are weak in and your strong points as well.In 180 days one learns plenty.Try it another 90 or 180 days and learn by trial and error. Then if you are ready to try again whether via traditional financing or another lease purchase,you enter much more informed and business oriented than the first go round. One may decide that owning a truck is not for them and continue being a company hand that is adept at running a truck not owned by him,hopefully leading to bonuses and all that good stuff.
-Either way you come out a better amd more informed driver.

First of all I did a lease purchase back in 1999 to 2000 with a carrier called TSL. I started as a company driver in 1998 so I knew the system. After 18 months it did not work out. I did learn some valuable lessons though.

A walk away lease is designed to lure drivers in.

A company actually saves money through using lease operators in the following ways;

1st. The carrier is able to save on Social Security and Medicare taxes for every lease operator they hire as compared to every company driver they hire.
2nd. The carrier gets a gungho driver that understands the necessity of satisfying a customers demands every time they hire a lease op. In many cases a company driver does not have the same level of investment or commitment to customer service as an i/c, o/o, l/o will.
3rd. The carrier is able to save money on the truck expense end of the business. A lease op will be responsible for the truck payment, maintenance, fuel, qualcomm, trip pak, transflo, road use taxes, fuel taxes, yearly HHUT tax, etc. (some things may be paid for by the carrier such as plates, permits, tolls, scales, lumpers etc. but it varies from place to place).
4th. The carrier saves money through not having to pay for holidays, sick days, paid personal days off, or vacations when they hire a lease op instead of a company driver.
5th. The carrier can grow its fleet size through adding on lease ops much cheaper than buying more equipment for company drivers.
6th. Family healthcare/accident injury insurance are paid 100% by the lease operator. Some carriers may have a "group discount" but will not pay any portion of the insurance for you.
7th. No pension or 401k to sponsor for "employees" all on the lease ops shoulders.
8th. In the event the driver fails the carrier gets the truck back and is able to resell or re-lease it to another driver thus making a major profit on company owned equipment by "selling/renting" it several times.

Now to address your specific issue about "walk away" leases;
Do you really trust that a carrier will not report your failure to pay the note over the term of the loan to a credit agency? I don't.
Do you really think that a carrier will not report an abandoned vehicle on your DAC if you decide to quit and park that truck at the closest terminal to your house rather than the MAIN terminal? I don't.

I crunch numbers from time to time to check the viability of getting my own truck. I submit the following for your consideration;

Based on the latest Independant Contractor magazine the companies advertsing within are offering as low as .92 cpm plus fuel surcharge. Lets play with some numbers. I will use $1.oo per mile as the compensation rate.

Based on a solo driver turning 2500 miles per week with a 10% variance (unpaid miles {2750 actual}). He will earn $2500.00 per week.

A new truck will cost around $750.00 to $850.00 per WEEK. I will use $750 for the purposes of this exercise.
New truck $750.00 per week.
New truck =.30 cpm
Assuming a truck will get 6.25 mpg on average
Fuel 440 gallons at $2.50 = $1,100.00 per week.
Fuel .44 cpm
Benefits (if paid by your "company" it will be 100% deductible) medical, dental, vision, disability, life, sick days, personal days, holidays, 4 weeks vacation.=.10 cpm
Retirement (fully funded by company contributions)=.10cpm
Maintenance fund (to cover pm's, oil, washer fluid, anti freeze, additives, breakdowns, tires, etc)=.05cpm
Bobtail, collision, liability insurance=.05 cpm
Payroll taxes=.03 cpm

Equals .97 cpm. This gives you .03 cpm for your pay. Now if you forget about all the insurances you can save .10 cpm and if you give up the retirement part that will give you another .10 cpm. So after all your hard work you could pocket .23 cpm for being a lease operator with ALL the responsibilities of having your own truck.

I did not include the following as they are usually covered by the leasing company.


Misc operating expenses (tolls, lumpers, scales, truck washes, pre-pass, qualcomm, trip pak, etc)=.10cpm
Plates, Permits, road use taxes, fuel taxes, 2290=.05cpm
Of course they may charge you for reefer fuel, pallet exchanges, trailer rentals, administrative fees, etc so it is is ESSENTIAL you READ the entire lease contract and preferably have a CPA/attorney review the lease before hand.

I think in order to be successful at being an o/o or lease op today you will have to turn 3500 miles (or more) per week and hope like heck you do not have any health problems or breakdowns not covered by warranty. By the way a breakdown does not get you into a different truck either. You will be waiting for yours to be repaired or you will "rent" another.

In the current economy I would advise AGAINST this course of action.