Want to avoid getting burned by a lease-purchase agreement?

Discussion in 'Lease Purchase Trucking Forum' started by rookietrucker, Dec 13, 2009.

  1. crzyjarmans

    crzyjarmans Road Train Member

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    Exactly! had to many of these conversation with socalled o/o with these lease trucks, found in my opinion, CRE is the worsed, Why give all the money to the company, if you want to own a truck go to a dealer and buy one, new or used is your chose, you'll have a much smaller payment, but make sure you have some funds available for maintance, break downs, my suggestion, about $20,000 if your buying used, in reserve, Just my opinion
     
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  2. Coolbreeze100

    Coolbreeze100 Medium Load Member

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    Realistically, the only way to make money as an o/o is to purchase your truck and pay for it in full. I know that is a simple statement, but the fact remains that anytime we borrow money to make a living, we put ourselves at risk. Certainly would be a wonderful world if we could all buy a 50-100k truck and not have debt. I just can't see with the uncertainty of the consumer economy to go into long term debt.
     
  3. Okieron

    Okieron Crusty Okie

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    I wanted to clarify something, Because you made me think I went and looked at my car lease title and it has me as the owner and the leasing company as the lean holder. Now I believe this is a state thing and I am in Ok. so it may be just the way they do it here.
     
  4. pawnature

    pawnature Bobtail Member

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    What about these new variable lease purchase options that are mileage based. Truck payments are on a per mile base not fixed. Are these any better.
    My understanding that if you don't work, that is if you are cannot work for whatever reason, there is no payment due.
     
  5. Coolbreeze100

    Coolbreeze100 Medium Load Member

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    Just my opinion, I would not lease anything that I am trying to make a living from. Not only are you betting your income on it, but if something goes wrong your just out of luck all the way around. People call them "Fleeces" for a reason. It you look at it, the last person to make money in the revenue stream is the lessee.
     
  6. ickeyiskewl

    ickeyiskewl Light Load Member

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    ok so riddle me this ...I have been looking at used rigs for awhile. I do have some debt to pay off and should have that done in 6 months. My question is 10 grand down payment on a 40 k truck should be what 400 a week maybe ? not including costs of course which i know is probably another 1,200 guessing...I maybe way off base here too. I have acces to retreads cheap (i worked for a retreader so i get tires at cost ) Other then the maint account . I figure putting 15% of total income towards prevetable maintenance is about a necessity . I haven't crunched the numbers for a basic percentage of pay .. anybody do this on a spread sheet type program ? ugh seems like more than its worth lol ...
     
  7. eyazee

    eyazee Bobtail Member

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    Im looking for a good company to Lease/Op with. Ive heard its not a good idea to lease with same comp. you carry for, but Im starting over in life (economy). I have 10 months OTR (dont laugh!) I am a pretty decent and polite driver. I am actually a lead driver with CRST (still! Ugh) but with them it doesnt take much to become a lead!
    I was a General contractor in Californi for 22 yrs and closed my Biz when economy dropped, so I have a fairly good head with legalities. I just dont know what to look for...Mileage? % of load? whats a good Maint. Plan? etc.
    PTL offered me a `07 KW t600, $1.40 per mile (incl a $.40 cent FS). I am tired of running team/lead even though CRST may have a decent lease program....just tired of smelly, dirty students...:)
    Thanx
    E.
     
  8. ickeyiskewl

    ickeyiskewl Light Load Member

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    u can fix the dirty students lol ...i guess i am a lil blunt in that dept ...anyhow i dont have any great advice but read what alot of others have said ...just talk to people as much as possible about leasing ...me personally i agree with buying a rig separate from the carrier you want to work for ... just makes it way easier to take your ball and go somewhere else you know. leave yourself with the best option not just one option you know ...there isw plenty of owner op carriers out there ..landstar ..sunco carriers and bunch of others ...route i would go myself if i had my own rig ..not sure if i want my own authority and run my own rig or lease it to somebody is the major question ...
     
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  9. Coolbreeze100

    Coolbreeze100 Medium Load Member

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    IMHO, you will have several issues in the lease that I can't find sufficient information to make me feel comfortable. You have an asset and it will be depreciated at a rate determined by your own tax rate and plan. You will also have a piece of equipment that is deteriorating every mile you drive it and you have to plan to replace it. So, you would have to have a separate account that you will have to fund in order to prepare for the inevitable mechanical failure of your current truck. In other words, this account would be independent of maintenance, fuel and debt service. Most people don't consider replacement of the truck and at the end of its service life, they can't afford to replace it. And, out of business or back to being a company driver.

    Just my two cents
     
  10. DenaliDad

    DenaliDad Retired Wheel Dog

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    I'm not in the trucking business yet, but all this sounds like questions that would be answered with diverse experience and exposure to trucks, drivers, companies, and so on. Anyone want to weigh in?