what happens if i turn my truck in.

I did. I went from bad credit to no credit. Picked a good l/p that does several things for me...

1: walk away clause.
2: puts more in my pocket than I need to cover my bills.

Now pay attention to these last two points....

3: reports to the credit agencies helping me build credit.
4: lets me find out if I can run a business without putting my credit at risk again.

I'm aware the company is making money. I'm happy they are. You act like that's a bad thing. Do you also ridicule company drivers because the company makes money on them? I'm not stupid. I know my personal situation. You don't. You anti lease crusaders come off like nannystate politicians who know whats best for every one and treat those who don't bow to you as ignorant children. Grow up. And finally, when I want financial advice from a truck driver I'll make a call to a driver who I know has the background.

 

Actually Keith when I post something about LP it is more often than not to add to the list of things the new driver needs to be aware of. The pit falls. I am not really an anti LP person . Just anti lp by companies that rip you off or drivers that do not read the lease agreement. It seems you did your research. I know there are a very few companies that do look out for the LP signers. A majority of them do not. Have a great week end and be safe in all you do. I am going to begin removing 5 layers of shingles off the garage.

 

You're fine Gordon, I figured out how you were coming at it a few pages back. Have fun with the shingles, I hate that job. Try to remember that falling might be faster but the ladder hurts less.

 

Keith I am doing the same thing Gordon is doing. The way most of these companies are setting drivers up is ridiculous. They are systematically putting you on the edge of failure without quite pushing a guy over the cliff. Some have a little bad luck and over the cliff they go.

I commend you for getting your ducks in a row and doing it right. I am not against leasing a truck, but these carriers are raping drivers. I know all about credit and credit agencies. I too had bad credit once. I fixed it, fixed myself, and will drive on hopefully making sound decisions in business or otherwise.

All I am saying is I don't believe most folks are doing their addition and subtraction and really looking at their options here.

Oh, and I am not against a company making money. I hope they make money. Keeps people employed and kids fed. What I am against is how they do it at times. This lease purchase deal most of them have is unethical in my book.

 

I agree, a lot of leases are set up to fail. I researched for 4 years before I pulled the trigger. you just havr to understand where we are coming from. Mention lease and the automatic reaction seems to be to deduct 50 iq points. A lot of us are doing just fine. Also completing a lease isnt always the goal for success. We get beat over the head with that one.

 

One other thing is, and perhaps I missed it, in all the reading I have done on the subject, I have not found one good lease purchase plan. There have been very few OK ones.

I am curious to know the statistics of failed lease purchase programs vs. O/O failures. When a company charges $800 a week truck payment for 5 years, it is understandable why some of these are failing.

Let's take a look at 3 scenarios:

Using a $145,000.00 dollar new truck with no down payment and 7% interest, the payment is $2,871.17 x 5 years for a total loan cost of $172,270.43. Interest paid is $27,270.43.

That same truck at 12% interest for a payment of $3,225.44 x 5 years for a total LOAN cost of $193,526.69! Interest paid is $48,526.69.

The lease with a payment of $800 per week is even more money. $800 x 52 x 5 = $208,000.00 and usually you still don't own the truck at that point and to get it you will have a buy out amount that will most likely need to be financed with interest tagged on to that too. The alternative to buying it out is turning it in. Then you either get to do it all over again, buy a different truck on a regular loan, or become the company driver you once were.

The difference between the lease and the 7% loan is over $35k you are paying out. We haven't even got started on the nickle and dime stuff the carrier is going to charge you on top of all this, that a normal O/O wouldn't pay.

The difference in paying cash for that truck and the lease is $63,000.00. You can buy a pretty good used truck for $63,000.

If you can punch holes in my theory here, by all means do it. I am no Warren Buffet for sure.

One last thing, interest is a cruel master, it does not sleep.

 

I can't say I know of people that have $63,000 laying around looking to sign a lease, either. You're comparing apples to oranges.

Signing a fair lease gives people without extensive capital an opportunity to work towards independence that they otherwise wouldn't have.

 

Nope, I don't have the 63K either. It was just an observation. You hit the nail on head Stile! A fair lease is the key. If you know of one, it is worth telling. One that benefits the company and the driver.

Of course there are more scenarios. Perhaps the truck you lease isn't new. Maybe, the lease is 1 year vice 5. But, finding something fair is the ticket.

 

If my understanding of the site's rules are correct, doing so would earn me a ban for "recruiting".

 

I dont know the payment details for every company. All I can give you is what it works out with for my 12' cascadia. My payoff started at $107k with a total after interest of $125k. That works out around 10% apr. Show me a no money down loan from anyone for that apr when the borrower has no credit and no assets to speak of.

Correction: 10% apr for 48 months works out to 130k

My payments are 120 a week plus .18 a dispatched mile. And that .18 doesnt hit till the trip is settled. Even with everything I have to cover for expenses I have yet to have a neg week. Last time I was home I turned in 800 miles for the week and still got a positive settlement.

Now if you can show me something that im paying that an o/o doesnt id like to see it. The one thing I have coming out that an o/o doesnt is for my maint account. But the balance of that is mine if I complete the lease or turn in the truck.