Why Lease? Doesn’t Make Business Sense to Me.

Discussion in 'Ask An Owner Operator' started by macher, Jan 1, 2021.

  1. macher

    macher Light Load Member

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    Yea I think I can make it work. Looks like plenty of good paying freight within a 50 mile radius.

    I want to keep my overhead close to nothing as possible. Not even concerned about revenue that will come. Keeping expenses to a minimum are important to me.
     
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  3. Scoot 1971

    Scoot 1971 Light Load Member

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    Seriously dude, if you don't want to lease then don't. Seems a lot simpler than starting a thread.
     
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  4. macher

    macher Light Load Member

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    No I don’t lol.
     
  5. macher

    macher Light Load Member

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    I just threw something out there which is my opinion. Others can chime in with theirs.
     
  6. Banker

    Banker Road Train Member

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    You are thinking differently than the “company driver mentality”. IE less miles can equal more revenue. You may be on the right path. None of us has it completely figured out as continuous improvement is essential in any business.
     
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  7. abyliks

    abyliks Road Train Member

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    Yea need to work as hard as possible for less money like most drivers in the industry...

    I did just under 1200 last week....

    the only time leasing makes sense to me is if you have a business (other then trucking) and need to move your own product
     
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  8. Scooter Jones

    Scooter Jones Road Train Member

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    Guy I know runs a pretty decent sized operation. He leases all his company trucks which are about 50 in all at any given time.

    They're full maintenance leases...

    He has no desire to run a shop or the other issues that come with running a truck regarding maintenance. If a truck goes into the shop for any length of time, the lease company provides a loaner truck.

    When the lease is fully amortized, he turns them back in or has the option of paying off the residual balance and keeping it in his fleet.

    The one's he keeps, he usually re-leases to guys that wanna become millionaire lease operators running under his authority, pulling his customer's freight in his trailers that he charges them $1,000 a month to pull.

    That's his "fascination" with leasing. Seems to be working real well for him ;-)
     
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  9. Wasted Thyme

    Wasted Thyme Road Train Member

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    Lease payment is deductible too. My mom, when she had her business, leased her car. It was smarter financially.
     
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  10. Scooter Jones

    Scooter Jones Road Train Member

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    Leases can be structured in many different ways. The reality is that most of these Manufacturer/Dealership leases that the big boys can get are not available to the 1 truck operator.

    For the bigger guys, it's just factored in as the cost of doing business, they have no attachment to equipment like a 1 man operation might have to his own equipment. To these guys, it's just a tool and another line item built in to their cost of operation.

    Then again, this discussion has been made ad nauseam on this forum.
     
    Last edited: Jan 1, 2021
  11. 77fib77

    77fib77 Road Train Member

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    Flat bedding, tankers. I did run a lot of miles doing that. Tanks beat up trucks pretty good with surge too.
     
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