Truck Purchase

Even with a recent bankruptcy, the outfit you are looking at is one of the very worst in the trucking industry. They prey on folks just like yourself, who have problems with their credit history. If you really want to get behind the wheel, then take a job as a company driver somewhere where your credit history won't be an issue. Then, if you still want to own a truck, save up some money and then take a look at some other programs. I'm not a huge fan of F/L's various low dollar startup programs, but they are miles ahead of this deal.

And by the way, this is strictly a lease you are looking at. At no point ever do you become the owner of the truck. You are merely paying a high rate on a long term rental for the truck, and will be responsible for the condition of the truck when it goes back to them.

I won;t go so far as to call them a scam, but they are predatory, looking for people who feel that they have no other chances to succeed.

Basically, this is what I think of their leasing program:

 

I did a little bit of searching the truck paper today, looking at prices, checking for similar trucks to the one you described. And in general, the value of a 2001 Century, specced like a typical fleet truck, with 6-800,000 miles on it is in the 21-24,000 dollar range. There are some a bit cheaper, getting down close to 16k, and there are some nicer specced ones that hit the low 30's, but in general, the value of the truck is about 21-24k if you buy it.

So, in light of that, lets break down the numbers a little bit more. The payments are 1380 per month, and the usual term of the program that they advertise is 26 months. So we get a price of 35880, plus the 4995 initial payment. (I won't use the term down payment, because you are not buying this truck, merely leasing it from them) Added up, it means that you will be paying them 40,875 for their 21k truck, and at the end of the lease you have zero to show for it. And you are also picking up the costs of all maintenance, since I strongly suspect that the "maintenance warranty" they offer has more holes in it than a chunk of swiss cheese.

At the end of the lease, they will probably offer you a golden opportunity to buy the truck, at a highly inflated price, which will be much more than the value of the then million mile truck. If you decline to buy the truck, then you will find some interesting provisions in the lease contract concerning the condition of the truck as you turn it back in. The tires will have to have a certain amount of tread depth, the brakes will have to be judged to have a set amount of life left, and you will be charged for any repairs they have to make on the truck, since you leased it from them. And don't be surprised if there is a "per mile" charge for any mileage over a certain yearly amount you have accumulated on the truck.

But, just to make things right with you, they will forgive most of those lease provisions if you lease another truck from them. They just happen to have a really nice one on the lot, and can offer you a really great deal on that truck as well.

There is no way in mere words here I can convince you how bad this deal really and truly is. if i were there with you, where I could yell, slap, and kick, then i would have a much better chance of making it clear how much of a ripoff this is.

You have heard the old saying that "I wanted to get into trucking in the worst way"? Well, this is the worst way. there is none worse.

 

Just so Burky doesn't feel alone, I will jump in here to keep him company. I am also familiar with these scumburgers and what Burky has said is true. I like most others on this forum never suggest doing a lease purchase, however if the only two choices I had were a lease purchase at the worst company in the country or signing up for this deal, I would take the company lease purchase every time. At least then you would get a truck with some warranty and much newer than the million mile ragged out truck that these crooks will put you in.

One little tidbit that Burky failed to mention; They will let you go through the process thinking that you are leasing a particular truck. That's not how it works. When you get to the lot, they put you in whatever truck they happen to have. You don't even get to choose your truck, they do.

I know what ya mean about wanting to stop him in person Burky. That is why I know about this program. I actually did slap around a friend of mine(figuratively of course) so that he would see how much of a ripoff this is. Let's face it, they are slick salesmen and when one gets "truck fever", they are an easy mark for a good salesperson.

 

Just as an additioonal note. There is another outfit practicing the same deal that advertises in the back few pages of the truck paper. This one if the "United Truck Group" or UTG. They run a full 2 page ad, big pictures of nice looking trucks, and advertise the same kind of lease deals. They put themselves at the back of the paper specifically because you look all the way through the paper and find nothing you can qualify for, feel discouraged, then suddenly "Voila" there it is, a deal that you can sign up for.

These companies prey upon your need to be an owner operator and be the man in charge. They know that you want this so badly you will do anything and sign just about anything to make this vision of yourself come true.

It's not easy to make it in this business, and it's virtually impossible on these deals.

 

If you are doing well with what you have, then why change it at all. The most I ould consider doing is to consider upgrading from a one ton pickup to a midsized truck, like a Ford F-650, or F/L Fl-70, or something in that size. They have a better longevity than a pickup does, and the cost is pretty similar to begin with.

If you can put some money together, and it sounds like you have a handle on the running a business part, then you could look into Freightliners programs for getting a truck. You may have to go through several trucks to find one that you are really satisfied with, but i have a couple of friends who have bought trucks through them and gotten decent machines. Again, they are mainly fleet spec trucks, but I'm not saying that as if it is a dirty word. just a way to describe a more basic truck as opposed to one specced out by an O/O with all the options.

Another option, since you already have an up and running business and the records to prove it, would be to find an understanding banker and get the loan as a business loan, since I assume the bankruptcy was a personal one. With records, the right banker may be wiling to go with you despite the bankruptcy, as long as it can be separated for recordkeeping purposes. Here is where it helps a lot to be known at a local bank that knows you and your situation.

Hopefully, it will work out for you. Credit is not irrepairable, and actually can be repaired in a lot shorter time than most people think, as long as you have good financial habits. If I did nothing else on this site this entire year but prevent you from signing the paperwork on the deal at the top of the page, I have justified all the time I spend on here.

 

You have heard the old saying that "I wanted to get into trucking in the worst way"? Well, this is the worst way. there is none worse.