Why a lease purchase can be a great opportunity!

Bet you could talk him into paying $1500 to find out

 

That was my point

Building "business" credit with poor personal credit and no D&B..

What do I know. I've met 2 guys doing lease purchases that are doing surprisingly well (IMO).
They don't have plans and motivations as exceptionally lackluster as this one however.

 

Not to mention that line of credit needs to be paid back sooner or later. So still don't see the hidden benifit. Market crashes freight dries up then what? And you have this all figured out already with only 10 months into it? Not knocking you but your business plan is only giving you nothing more then the chance to go in debt for borrowed money you WILL need to eventually pay off. No profit in that business plan... only credit. Just my opinion

 

Sorry meant to reply to OP not you scottav46

 

Just another opinion.... the ones claiming fame to successfully completing a lease and owning the truck ...title in hand does not mean it was a success how much money did you bank after ALL expenses? Unless your only goal was to do nothing more then pay a truck off ,there was no success in the business model of a LP. ON the bottom line @ the end of the year after all expenses, taxes ,fuel,whatever else is involved, I'm willing to bet dollar for dollar I'll make more as a company driver than any LP. Again just MY opinion

 

While i am no fan of of lease purchase, i do know a few that it worked out for. They made the same as a typical otr mega carrier company driver, and got the title to a trick with a little life left in it. Not much life mind you, but enough to get them going strong at a much better carrier.

I still say they would of been better off getting a better company driver job for the same time frame as they did the lp thing...but it worked out in the end for them and that's all that matters.

 

Don't act

don't act stupid now.
You said the Op's plan was way ahead of other lease operators.
I just asked you to explain why. And judging by all the other
Comments on this thread you must know something
The rest of us don't.

So why is his plan waaayy ahead of other lease operators.

 

@Western flyer ....if I must explain...

This is what I said:

"IF, I repeat, IF the lease is a true walk away, then you are waaaaay ahead of other L/O's out there."

Leases are either walk-away or NOT.

Some L/O are not in TRUE WALK-AWAY leases....and hence, their credit get screwed if they try to get out.

The OP confirmed that his KLLM lease is a walk-away and thus, will not have credit issues if he chooses to move on, before the end of the lease term.

That is why I said he's "waaay ahead" of those that did not ensure this clause in their lease agreement.

Keep in mind that "walking away" may mean forfeiture of down payment, and all the monies paid during the lease term, plus potential lease termination fees.....but at least, the "burden of feeling stuck" is no longer there.

 

Now I understand. That's all I wanted to know.