What do you think of this lease purchase program

I will highlight what I am looking at:

You pick the truck 2007 or newer from where ever you want (but must be looked over by an independent mechanic no cost) have quite a few deals in place with larger truck dealerships
Finance over 5 years max @ 12% once you pay it off it is yours
No money down
Weekly settelment deductions
Do not want the truck back if you need to be out for medical reasons or vacation or something can delay payments or work with you on a solution or as a last resort rework the entire note
This is run through a 3rd party so there are penalties against the carrier if a driver walks on the truck (pretty much anyone can get approval as long as the carrier approves them)

Carrier averages $2.37 per mile 2013 you get paid 72 % of the load looking at around 2300 to 2700 miles weekly home weekends and sometimes throughout the week
No trailer cost
Only fees would be weekly
OCC/ACC $50.00
Bobtail $8.00
Phys dam 4% of value/52
Tag no cost supplied by carrier
Escrow $50 per week to $1000.00
Maintence escrow $50 per week to $2500.00 (must be at $2500.00)
Carrier figures IFTA and deducts weekly

What do you think?

 

I think if it sounds to good to be true, it usually is. If they paid this well and were a good company they would have owner ops busting the door down to lease on.

 

What's the company?

 

On an '07 truck you need to be thinking in terms of $350 to $400 a week for maintenance - $.15 a mile. Heck at $50 a week you won't even save enough in a year to buy a set of drives - not that you will buy set every year. But I suspect you will spend a little more than $3000 over 2 years on just routine maintenance and this and that. Also you need to be planning on an in frame in 2-4 years.

 

Seems like OP trying to add on trucks to his company by offering LP option. Looks better than most anything else out there. Agree with Mystic about maintenance fund/escrow being somewhat thin. Better get ready to become a bank/lender for truckers who have no money. Is there any fuel discount or surcharge on your direct freight?

 

You would be suprised I find that O/O are a necessary evil for my business. I wish I could completely get away having them because they do not work in what I am trying to do. That being said this is being more of a recruiting tool in order to gain new drivers because I need them to keep up with customer demand.

 

My company based out of upstate SC run southeast regional and local

 

I would try to steer towards newer trucks it does not have to be an 07.

Good point on maintence fund being a little light I will need to take another look. What would you recommend?

 

Yes trying to add trucks onto my company.

Unfortunatly I already am a pay day lender for truckers who have no money so nothing new there

Yes we get a pretty good fuel discount I believe it is somewhere around $0.22-$0.25 per gallon and the rate I stated was all in FSC inclusive O/O get 72% of linehaul and 100% of fuel surcharge

 

I wouldn't even require a maintenance escrow/account ... provide one for their convenience if they want one and to get your discounts ... say a minimum of $.05 and a maximum of $.20 and allow the O/O unfettered access to the funds whenever they want.