What happens if you can’t make truck payment?

What’s the consequence of terminating lease purchase contract early? Apart from the $10k fee?

 

I have no idea but 10k fee is all I need to hear!

 

In the past, the most common cause of an owner operator bankruptcy was on their personal finances.
Guys buy a new truck, the first two or three years it’s making money, The guy has lots in the bank and says “hey, I can move onto to that nicer house”, buy a new pickup, buy a boat, etc.
Then the big rig needs new tires, warranty runs out, repairs start to get bigger, less cash available to afford the home side expenses.
More recently there’s a downturn in trucking freight, now he’s getting squeezed from both ends.

 

There is no standard fee, or rules of any sort. It depends on what you Legally sign your name to. Buyer Beware.

 

It won’t be a question aboit what happens if you can’t make the payment, it is a question of if you have a plan and are willing to follow through with the plan.

going into buying a truck and leasing it to a carrier means you have capital for 6 months of down time to pay the note and bills and pay your insurance and other things, plus have a fund for maintenance and breakdowns - this may be as high as $80k for all of it.

you can’t take a loss in the tax sense, you can in the reality sense, but then it comes down to you lessening your risk by proper capitalization and money management.

 

All really depends on the finance company. You won't be able to sell it, probably at all, for anything less than you owe on it. Even if its 100k, with 20% down, you're going to incur interest even if its minimal. Some finance companies will work with you, some won't. If you are leasing it from a leasing company they may repo it right out of the gate soon as you are late. If its a real finance company with monthly payments, then you might get some reprieve, but don't expect much of it.

 

Dont forget that the cost of equipment is still inflated. If things get as bad as most expect that $100k truck will be worth less than $50k, what are you going to do when you are $30k in the hole on equity with the truck? That $20k down payment is gone.

 

2008(?) I remember having a convo with someone about not being able to make a payment, contacted the bank, and they didn’t even want it back, said even if he stays a month or two behind no one else was making money with them either so something is better then nothing. I believe it took a little bit but he did get caught back up

 

You would have to be brain dead to get into a lease with Schneider.

 

Buying your first truck is a huge risk! And yes people have lost their ###. If you can't make the payment, your truck will be repossessed and your credit will get damaged. And your other financial obligations will be damaged as well because your not making any money.

With that said, now is by far the WORST TIME to even consider buying a truck. Freight rates are in the toilet, freight is slow, and fuel is high.