Who has completed a lease purchase and fully owns truck with title?

Point is what you are making after expenses. And money going into an escrow account is planned furture expenses. While if not spent this year you will be taxed on it you should not consider that "income".

With clean driving record and a couple years experience you husband could be making almost twice that money with zero risk. Or 3-4x that money with the same risk.

He needs to get to understand this business. These lease programs get a bad name for just this. People who do not understand it get into a deal and then at some stage figure out they are not making money and put it all on the company.

 

just curious who yu with now?i paid off 2 trks on lease pur.1 with hirschbach and calark so it can be done only if yu work hard run and stay on top of everything and the payments are not to far out there!

 

i hear from very few people that get there trks paid off with jct !i know with ael/calarks lease they send out msgs everyweek bout people gettin there titles its good to hear !i got 2trks done on that deal 98fld 2000 classic there older trks but there mine and paid for!!

 

me dirtroadchild got two acually 98fld/00 classic 1 with hirschback and calark/ael and still leased and they don't play games with yu its if yu want to run they give you miles and get paid just simple! most starve yu out when you get your trk paid for you hear that all the time you have no ties to them no more so they don't care if yu run or not!

 

I have been coming out of a hole with JCT which is much better than the previous that got me in the hole. I have also talked with several drivers that have been with the company awhile that did pay their truck off. One opted to sell his truck & take that money & put down on a newer truck from an outside source that landed him smaller truck payments, thus more revenue for him at the end of the month. The others upgraded at the end of the lease to newer trucks and sold their trucks on their own. They got the miles, & if I had a choice I would finance my own. Then perhaps lease it on to them as one fellow in orientation did.

 

I am one of the fortunate few. But I didn't go the "normal" route.

I started on a company lease. Then found that the "gentleman" in charge of the leasing program would make a father raper look good.

The basics were 1600/mo for 48 months and a balloon of 10K at the end.

It was a good truck, and I had good credit. I spent 6 months putting up with the "gentleman's" BS while I figured out if I really wanted to do my own thing.

After 6 months, I obtained a loan to pay the truck off, and sent the company a certified check. Haven't had to deal with him since.

AND I paid the truck off in 2.5 years instead of the 48 plus a balloon that I had signed on for.

I would discourage anyone from going the company lease route. Companies have found that they can take a piece of junk, get someone to sign the line, and charge them an outrageous amount for it. Knowing that they likely will fail, they also require escrow accounts a large maintenance funds.....all of which will be kept when the driver bails out of the lease.

 

If all these programs are bad then y do so many co have em? Is it just because owning a truck sounds cool and they no people will do it?

 

I had an opportunity to speak with a representative of a major carrier who does these programs. According to him, it is not a profit center for them. I am not so sure when you look at the numbers. I have spoken to drivers for years who have gotten into these programs. Nearly all have failed to complete their leases and lost their trucks.

My theory is that carrier often do these in hope that the lease operator will take care of the truck better than if he were a company driver. The company pushes the responsibility for running the truck to the lease operator. It lessens the possibility of theft since the lease operator would be stealing from himself rather than the company. I would love to know how well carriers do with these programs. They do save on some overhead such as benefits and taxes. The question to me would be whether they make more with lease operators than they would from owner operators or company drivers.

 

I think one of the benefits of lease purchases for the company that we seldom talk about is how this arrangement makes them look on paper. I'm no financial expert but I believe there is a big advantage.

They can expand operations and increase profits while keeping down debt. Even if the profit margin is small it will improve the bottom line.

While they may not make a lot per mile, I would guess that has something to do with shifting the cheaper freight to lease trucks. The effect of this is to increase the profit margin on the company trucks.

So if they look better on paper, increase expansion rate, make a small profit and can increase business by hauling more cheap loads they are winning on several fronts.