What are the consequences for terminating lease purchase contracts?

What are the consequences for terminating lease?
I know SFI wants $11k
Do you loose credit?

I’m trying to figure out what happens when things go south, what are the risks involved when it comes to owning a truck. From the other thread I post about financing a truck, people explained that your truck gets repossessed, you’re in #### ton of debt, and your credit is destroyed.

So does this make lease purchase a better option for exit strategy? Yes you do pay more for the truck, but if you can walk away clean with $10k in the bank, maybe it’s worth it to pay the premium for the truck?

 

Most lease purchase company deals are not reported to credit bureaus as the main incentive to the company is to offload expenses onto the driver.
They just find another guy eager to take your place.
Although I probably wouldn’t count on them for being a good reference on your employment file.

 

check out this thread for some insight:
Current rates are now below fleet operating costs! It's official! The reports are out! | TruckersReport.com Trucking Forum | #1 CDL Truck Driver Message Board (thetruckersreport.com)

 

What happens when you terminate a lease contract deends on what is in YOUR contract.

 

How much experience do you have? How long have you had your cdl?

 

If you don’t know what you’re doing, if you don’t understand how to book freight or load plan or use HOS or preventative maintenance or how to ask questions and if you’re bad with people and don’t know how to follow guidance then yes lease purchase is a good step but if you can do those things then you’ll also fail at lease purchase unless you can be a great company driver but in a lease purchase position.
If you understand how it all works or can take advice then you’ll be able to decide for yourself if what truck you buy at what terms is reasonable according to your expected idea of how you’d like to drive in what lanes and how much you ought to stay out and what freight to book and what to save and track.
Choice is yours.

 

Every question can be answered by reading the contract.. Please dont tell me you signed that contract without reading and understanding every word of it?

 

Sounds like if I’m reading his message correctly, he didn’t sign anything yet. He is asking like the previous question he mentioned in this question that he wants to know what to do and what could happen either way if it all goes bad.

 

In direct answer to your question:
You will not loose your credit. Schneider doesn't report.
You will likely loose your 11k, or most of it.

 

If you are having to make a down payment to get into a lease purchase program that seems like a scam... Why wouldnt u just go make a down payment on a truck of your own with outside financing and sign on as a owner op.. Probably get better financing terms in the end.. But im just speculating and dont have any first hand knowledge with that company.. But have been successful with a lease purchase progran.