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

Discussion in 'Lease Purchase Trucking Forum' started by OOIDA Media, May 7, 2010.

  1. 13 Double Over

    13 Double Over Bobtail Member

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    Mar 23, 2010
    Las Vegas, NV
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    We are just a Mon & Pop Co. We've leased-to-own many trucks. But we do it where we know the miles are there to support the deal. Crispin Griffith was our first driver to try this out, and he has the truck and the title, now. There's a driver with us now who is going to make it, and another who probably is not. Yes, it's about the deal, about the tricks to get you out of the truck before you own it, etc. I don't know how to tell the companies who will pull crap like that from the companies who won't. Our balloon payment on the truck is one dollar. You've read here how much money it takes just to get started. We get it started and put the truck where the tires do not need to stop turning. Some will make it, some will not. We can't do everything. We just pull together all the financing, the avenue for positive cash...but, with us, I've seen, it's the DRIVER. Can you inspire the idiot who didn't put the bills into your trailer to get out of bed at 3 AM to fax them. Can you get over a hill that requires chains by calling the guy who gets his hands on your money before you do, and say, "The only way I can get this load in on time is with chains. The chains I need cost XXX dollars." Then, you made a load on time, and you owe the guy for chains. He has 2 good reasons to have your next trip booked immediately. He knows you have nothing more important on your mind that delivering on time. And you'll use your brains to change the conditions that are working against you. My driver, under those circumstances, waited before that hill for 2 days for the right weather. He may be wondering why the other team is getting all the good miles. He could be, too. He just has to use his head...change the circumtances that are going to make him late. And the other driver...he made friends with the movers and shakers in the office. He used the home phone number of one of them, and within an hour or so, those missing bills were faxed. One driver pouted and he's wondering why he gets the weak trips. The other is on his feet, finding out what the problem is and putting things in motion to fix the error. Delivery... on time. Next trip...ready right away. There are lots of circumstances that go into a deal that works. With us, we get a lot of the obsticles out of the driver's way to buying. But the driver is a vitally important part of these deals working out. Be smart. Give boxes of quality chocolates from europe to the staff in the office.(Wal mart has them now) Be gracious. Be ready to do whatever is needed to get the load in on time. While one of these guys is pouting in his bunk, I'm out looking for a new buyer for his truck. This business is not for people who need babysitters. The other guy is eating up miles. He'll own that truck.
     
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  3. Sisken

    Sisken Bobtail Member

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    Feb 24, 2011
    Everett,WA
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    Eskimo6804
    hey, pm me i like to know a little more information ok.
     
  4. gulfinc

    gulfinc Bobtail Member

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    Feb 10, 2010
    born in the usa!
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    lease purchase is a big scam.... they 1099.... they can out bid anyone hual.... they lice are going to pull it for 76 cents with no fsc!
     
  5. MotorinMomma

    MotorinMomma Light Load Member

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    May 5, 2010
    Clinton, IA
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    CalArk has a lease purchase deal too.....grin....


    Let's see if I can list it all:

    Weekly Payment $495.00 for 131 weeks = $64,845.00
    Prepass= $15.00 (approx) month
    Qualcomm $12.80 per week
    Escrow is .09 per mile unless you zero it out then it goes to .13 a mile till you are out of the negative.
    You get a fuel discount at the majors of "about .25 a gallon"

    You will run "around" 2500-3000 miles per week

    The trucks are currently 2005-2006 Intl 9400i Eagles, with average 500,000 miles on a 435 hp Cummins with 10 speed Eaton Ultrashift NO warranty unless a component has been replaced and has some warranty on it. They pay .85 a mile with the current 44.5 FSC, except for deadhead miles which pay.85 up to 200 miles, 201 up are unpaid.
    oh but "the trucks run 75 mph" oh, is 0 down, no credit check, and you can walk away and be a company driver if you aren't making money. IF you aren't making money. Now I'm blonde, and I'm female and I'm old...but IF I'm not making money...there wasn't any money to start with... set up to fail as soon as you sign the deal..:biggrin_25510:
     
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  6. MotorinMomma

    MotorinMomma Light Load Member

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    May 5, 2010
    Clinton, IA
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    Have a friend that did the lease.....no payment for first two weeks (how nice of them) he ran about 2700 miles first run out...at .37 a mile. When he got his settlement he owed them $100 after deductions for escrow, fuel, insurance, plates, insurance deductible, load locks, and more... If you are going to do a lease with ANYONE don't get caught up in the "I'm gonna own my own truck" excitement. Take the paperwork to a lawyer and let them read it.
     
  7. G/MAN

    G/MAN Road Train Member

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    Sep 3, 2010
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    You should never sign any contract unless you understand it. I have seen people sign these lease agreements and NEVER read them. If you can't understand what you are signing then don't sign it. I always read EVERY word of ANY contract that I sign. If there is language in it that I don't agree then I don't sign it. If you don't understand it and still want to do the deal then by all means find a lawyer to read over it and advise you. One thing you should never do is sign something without fully understanding what you are agreeing. You should understand how you will make money and every deduction.

    Another thing you should understand is what happens if you take a few days or couple of weeks off. If it were me I would want to talk with several people who have completed their lease. It would also be good to ask for copies of settlement sheets of those who have been involved in these leases.
     
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  8. gulfinc

    gulfinc Bobtail Member

    30
    9
    Feb 10, 2010
    born in the usa!
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    gman is the man....
     
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  9. G/MAN

    G/MAN Road Train Member

    7,031
    8,617
    Sep 3, 2010
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    One thing that I usually don't see addressed when I read about lease purchases is "cash on hand." Every business requires a certain amount of cash to succeed. I am talking about having cash in hand before you sign on the dotted line. Whether you buy a truck through conventional lending sources or through a carrier and their lease purchase, it takes cash to operate. For those who have never owned a truck and have poor credit, it can sound tempting to think you can get your own truck with NO cash down and NO credit check. Even so, it takes money to operate. Carriers will front most of the costs, but you should NEVER go into any business without at least some cash to help you through the learning curve and for emergencies. Carriers who do these programs will usually take care of base plates, permits and even pay for repairs or breakdown expenses. But, you usually need to pay for anything they pay on repairs, etc., out of your next settlement check. That can put you into the negative. Unless you have money set aside then you could be out of business or miss a couple of meals.

    Trucks will breakdown. New or used, all of them will breakdown. When they do, someone must pay for repairs to get you moving again. If you breakdown on the side of the road, and you will, then expect to spend a minimum of $200-300 plus any parts. You don't move the truck until repairs are made. You won't usually know the cost until repairs are completed.

    When you lease or buy a truck you are in business. It should be treated as a business. If you start a business without any money then you are taking a great risk. A major breakdown or expense can put you out of business.

    Most who complain about these lease purchase programs trash the carrier. Some carriers do offer support to keep you rolling, but their is a price you will pay. You cannot place all the blame on the carrier. The one who signs the lease should bear some of the responsibility. If you sign a contract you should understand the terms and what it will take for you to make a profit. I know of 3 people with whom I have spoken who have completed their lease and got the title to their truck. Countless others have failed. Most who have failed with these programs won't admit to having done them. It won't be easy. Running a successful business requires hard work and dedication. Just because you can take time off doesn't necessarily mean that you should. Lease payments are usually much higher than one would pay to buy the same truck through conventional lenders. You will most likely pay a higher weekly payment with a lease and those payments go on whether you run or sit. It is easy to blame others for our mistakes. If you fail at a lease you cannot blame the carrier for your failure. I understand that there are stories about carriers starving a lease operator out when it gets close to the end of the lease term. That is something you should find out about prior to signing a lease.

    It is also the lease operator who has the responsibility to properly check out his equipment prior to signing a contract. If you are not mechanically inclined then you should be willing to pay someone to check it out for you. If you cannot afford to pay someone to check it out then you should wait until you can pay someone. I had a driver who wanted to do a lease with a carrier. He was not allowed to get the truck he wanted and rather than get into a truck he didn't want, he decided to apply for a job with me.

    Anyone who wants to get into a lease purchase should carefully read over the contract before signing. If you don't understand anything in the contract, you should get clarification or have the agreement changed if there is anything in it that you don't agree or don't understand. It is YOUR responsibility to make sure you fully understand anything that you sign. You cannot blame the carrier for your poor business sense. It might even be a good idea to have a lawyer look it over for you. The cost should be minimal and could save you from losing your shirt. If you cannot afford to pay a lawyer then you are net ready to be in business.
     
  10. paul 1052

    paul 1052 Heavy Load Member

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    Oct 9, 2010
    Sand Springs, Ok.
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    I got into one in '05, 0 down 0% interest and a walk away. $80K for a '03 379. I get the title next week, it did take longer than the original 60 months as planned but I also had a $22K inframe at Cat also.

    I've got half a dozen friends just off the top of my head that also got in on the same deal and will get their titles within a year.

    A few years ago we had a really slow winter and that weeded out quite a few that went over to driving a company truck, but the opinion of those of us that survived is that they just weren't totally determined or ran the business end poorly.
     
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  11. alien4fish

    alien4fish Light Load Member

    Medicine Man, How you doin?
    its been a while, did you ever get that old pete running?
     
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