Lease Purchase Lease Purchase

Texas Renegade

New Member
My advice to anyone whom is considering a lease purchase. STAY AWAY! There are to many people whom have tried and failed due to the companies being , or learn to be broke, and the only winners. I did two of lease purchases. I got lucky, and paid off both. This was many years ago. I hear thing's have changed, but in favor of the companies. One must be willing to run their rear off, be budget minded, Have some money put back you will not receive a paycheck. The companies take out for (maintenance cost, fuel, truck payment, bobtail insurance, and more) You have to pay your own tolls, or pay a monthly fee for use of a Pike Pass, food, etc
 

patriciajnsn

Steering Wheel Holder
My advice to anyone whom is considering a lease purchase. STAY AWAY! There are to many people whom have tried and failed due to the companies being , or learn to be broke, and the only winners. I did two of lease purchases. I got lucky, and paid off both. This was many years ago. I hear thing's have changed, but in favor of the companies. One must be willing to run their rear off, be budget minded, Have some money put back you will not receive a paycheck. The companies take out for (maintenance cost, fuel, truck payment, bobtail insurance, and more) You have to pay your own tolls, or pay a monthly fee for use of a Pike Pass, food, etc
You're deffinately not the first that has said this.I have never leased because of stories like this.
 

mndriver

curmudgeon extraordinare
Supporter
If I listened to every person who had a story like this, I'd never would have bought my truck or gotten my authority.


Here's a better tip.


Realize your are a business person running a business and not a truck driver.

Then make sound business decisions.

You'll see a lease purchase is viable. Just not in the forms most are offering.
 

ironpony

Professional Pot-Stirrer
Supporter
You have to be on top of your numbers to even have a chance of being successful. The cost of the lease increases the fixed costs to the point that one's potential profit can become nonexistent. These deals can work, but the revenue stream has to be there to support the lease payments and operational cost, and still leave enough to support your life.

The other thing about them is the risk involved. The contracts generally include language that allow the carrier to terminate the lease for practically anything. That coupled with the fact that most carriers have the title in the name of their leasing company means the driver has no control over the truck they're paying on. You can loose all of your "equity" in the truck at any time.

You're much better off saving your money and buying a used truck outright.
 

patriciajnsn

Steering Wheel Holder
You have to be on top of your numbers to even have a chance of being successful. The cost of the lease increases the fixed costs to the point that one's potential profit becomes nonexistent. These deals can work, but the revenue stream has to be there to support the lease payments and operational cost, and still leave enough to support your life.

The other thing about them is the risk involved. The contracts generally include language that allow the carrier to terminate the lease for practically anything. That coupled with the fact that most carriers have the title in the name of their leasing company means the driver has no control over the truck they're paying on. You can loose all of your "equity" in the truck at any time.

You're much better off saving your money and buying a used truck outright.
Hopefully folks that sees this thread will read your post as well as the ops and think before making a commitment.
 

nan

Well-Known Member
Supporter
Yes used trucks are pretty cheap these days. And you don't have to start out with junk anymore.

Problem is people wanna lease these brand new shiny KWs and Peterbilts that cost the company an arm and a leg and the company is making a profit on THAT yet. So it's obnoxious what you pay for your truck if you lease purchase.
 

ironpony

Professional Pot-Stirrer
Supporter
Yes used trucks are pretty cheap these days. And you don't have to start out with junk anymore.

Problem is people wanna lease these brand new shiny KWs and Peterbilts that cost the company an arm and a leg and the company is making a profit on THAT yet. So it's obnoxious what you pay for your truck if you lease purchase.
Yeah, well new truck prices (unless you buy a block of them) are mighty obnoxious too.
 

ironpony

Professional Pot-Stirrer
Supporter
An older used truck can cost you as much as a new one each month.
Very good point.

A maintainance budget must be included in your operational cost, as well as maintaining an emergency reserve.

What happens if your old engine throws a rod? If you don't have the money to finance the repair or have the credit to get a loan, you're out of business. One can easily spend $5,000 or $10,000 on a repair in this business.

OTOH, a new truck lease comes with a warranty, and some sort of maintainance agreement with the carrier. You have to understand how these provisions work, and what kind of financial hook you're on before you start signing stuff. Quite frequently carriers want you to sign up to fund a maintainance escrow account that the driver doesn't have control over (that's your money!!) and doesn't have control over what gets fixed, when or how it gets fixed as well. That's a bad place to be in, when we're talking about something expensive you intend on owning.

Warranties are not necessarily all they're cracked up to be either... depending on whether the engine and truck manufacturers actually stand behind their products, and do what's right without legal wrangling.
 

mndriver

curmudgeon extraordinare
Supporter
A used truck will have lower fixed monthly cost. But high variable maintenance costs.

A new truck will be an extremely high fixed cost for a payment.

The lower fixed cost will allow you to weather a slow market much easier than a higher fixed cost.

The less you use the truck, the less it costs you for maintenance.

For the most part, cost of maintenance is the same for an old or new truck.

Brakes are brakes. Old or new. It's about $125 per corner for new brakes and drums. That's if that's all you need.

Same with oil changes etc. New trucks are claiming extended oil changes out to 60,000 miles. Older trucks are around 15k.

Fleets are turning trucks over constantly. Why? End of service life of wear components. They are cheap to operate because they've worn them out and instead of repairs, they replaced the entire truck "with a warranty"

Increased insurance, def cost and the fixed vehicle payment payment offset a new truck vs an old truck for annual costs. It is basically a wash.

It comes down to reliability. Which truck will be more reliable for you.
 
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ironpony

Professional Pot-Stirrer
Supporter
A used truck will have lower fixed monthly cost. But night variable maintenance costs.

A new truck will be an extremely high fixed cost for a payment.

The lower fixed cost will allow you to weather a slow market much easier than a higher fixed cost.

The less you use the truck, the less it costs you for maintenance.

For the most part, cost of maintenance is the same for an old or new truck.

Brakes are brakes. Old or new. It's about $125 per corner for new brakes and drums. That's if that's all you need.

Same with oil changes etc. New trucks are claiming extended oil changes out to 60,000 miles. Older trucks are around 15k.

Fleets are turning trucks over constantly. Why? End of service life of wear components. They are cheap to operate because they've worn them out and instead of repairs, they replaced the entire truck "with a warranty"

Increased insurance, def cost and the fixed vehicle payment payment offset a new truck vs an old truck for annual costs. It is basically a wash.

It comes down to reliability. Which truck will be .ore reliable for you.
I disagree. Maintenance costs do differ, and can be ginormous in a new truck. One word...

Emissions.

The cost to repair a malfunctioning emissions system can easily put a small businessman out of biz. Pre-EPA trucks (model year 2003, or earlier) don't have that headache.
 

mndriver

curmudgeon extraordinare
Supporter
What's the price difference on a 2013 for brakes vs a 2000?

Pointing out emissions is a no brainer. I referenced it as reliability.

So now you are simply being argumentative.
 

nan

Well-Known Member
Supporter
New trucks are being put in the shop constantly due to emissions systems.

I'd rather have an old truck and rebuild the motor.
 

ironpony

Professional Pot-Stirrer
Supporter
New trucks are being put in the shop constantly due to emissions systems.

I'd rather have an old truck and rebuild the motor.
I agree, but I'm not being argumentative. Could you afford to pay out $40,000 out of pocket over 6 months, being in the shop every other week?
 

nan

Well-Known Member
Supporter
I agree, but I'm not being argumentative. Could you afford to pay out $40,000 out of pocket over 6 months, being in the shop every other week?
Can you afford to put a new truck in the shop every other week?

We have 2016 Peterbilt 579s that are in the shop for SOMETHING on a very regular basis.

So huge payment PLUS downtime vs small payment PLUS downtime.

I'll take the small payment.
 

nan

Well-Known Member
Supporter
Either way if I can't afford it I'm not doing it.

I'll be a company man until I have $100,000 just to spend on the truck, which for me would be an older truck for about $25k and whatever it takes to make it road worthy. Rebuild, tires, turbo, alternator, tranny, clutch, whatever.

I'd rather freshen an older truck completely than drive one of these overly complex new ones.

And I'm a relatively young guy who loves technology. Just not in this case.
 
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mndriver

curmudgeon extraordinare
Supporter
since I bought my truck, 2007 Freightliner Century, in July 2012.

All parts, maintenance and services, that includes truck washes, I have paid $70,500. That's over 50 months. Averages out to $1402 per month. Add that to a $1500 vehicle payment (Truck and trailer). Makes it about $2900 per month in equipment expenses. The big ticket items I still need to repair or rebuild are the engine, radiator and the drive shaft. All the rest of it has been done already. New rear structure, new trans, new clutch, new power divider, new brakes. All of it. Even a new frame cross member. Today, I am installing new thermostats. Only had them sitting on the passenger seat since May. Finally decided yesterday after bobtailing and being able to hit 200*F on a 70*F day, that it was just time. Glad I did. One of them was stuck.

The only time I borrowed money for the truck repairs was when I did the trans/clutch. That bill came to $14,000. And talk about a load of work. New slacks, shocks, suspension bushings, alignment, clutch, trans master rebuild, rear structure overhaul, flywheel machined. And an oil change.

At no time can you allow your maintenance list to build to a point you are overwhelmed. It will destroy you. I expect the maintenance projects to start repeating themselves here in another 14-24 months. brake chambers, slacks etc all over again. This summer it's the hoses and coolant like it was back in 2014. Testing the coolant, the pH level is dropping even thought the nitrites and SCA are testing good. So it's time to put in new.

It's called preventive maintenance for a reason.

A new truck will be somewhere between $2900-$3200 per month for just a vehicle payment.
 
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Sinister

Supermodel
Staff member
Supporter
A new truck will be somewhere between $2900-$3200 per month for just a vehicle payment.
I just got approved at Pumpkin for a lease purchase and the amount of scrutiny was unbelieveable. They're not just letting anyone in the door.

And yes, the weekly lease payment, with the required maintenance payment (which differs from truck to truck) is right around a grand a week.

Being a lease this is deductible, but 4000 a month before fuel and insurance even come out have me shaking in my friggin boots.

Schneider looked at my finances and said I can swing it, Mike Mike says I can swing it...but man oh man that seems like a tall order.

IN CONTRAST, I'm looking at truck on QC's website. One is A 2012 Pete 386 with a 450 Cummins, 10 spd (?? WHY ??) and a tri pac, for just about 550 a week. Add the required escrow payment and it works our to be just over half of Pumpkins 4000 a month.

Add to that the difficulties I've had with my dispatcher, the fact that theres pretty much no such thing as getting home with any regularity unless I stay very close by the terminal...

I don't know WTF I'm gonna to at this point.
 

mndriver

curmudgeon extraordinare
Supporter
I had a bunch of things eating at me all summer.

Truck seemed to always be running on the warm side. Basically had the engine fan on since may. Apu alternator kept failing all summer. (Three this year.). ABS light was on since June.

Bunch of little things that were eating me. Sat down last night And put numbers in for fuel mileage. 6.36 for the year. 5.89 for July.

I was really ready to get a new emissions truck.

T-stats were installed today. I can't even get it to warm up hardly. When I pulled them today, one of the t-stats was stuck solid. Not sure if it was from the time sitting after the accident or the heart attack.

Replaced a relay today for the abs controller. It was full of water. It all works fine now.

Installed a CCW fan on the APU alternator. Ran for 6 hours the other day when it would have been lucky to run an hour when 90+°F.

I'm actually looking forward to going out Monday for about 18 days this time. Hope to see how these repairs will do. Won't be running the engine for A/C and the fan won't be on to keep the e gone cool when running.

There's days that owning the truck, you question your own sanity.
 

Blood

Driveler Emeritus
Supporter
since I bought my truck, 2007 Freightliner Century, in July 2012.

All parts, maintenance and services, that includes truck washes, I have paid $70,500. That's over 50 months. Averages out to $1402 per month. Add that to a $1500 vehicle payment (Truck and trailer). Makes it about $2900 per month in equipment expenses.
I bought a '99 speader for $7500 five years ago.
I've spent about $30k on it this year but before that next to nothing.
[I should have scrapped it in Dec but live n learn].

I bought a 2000 FLC in Dec with 100k on an inframe for $15k.
It's pretty tight I think iit'll run for minimal M&R for acouple of years.

Before the spreader was another 2000 FLC in 2003 with a little over 300k on it.
I put another 1.3 million on it with hardly any repair expense that wouldn't be considered maintenance.
A clutch, tires, brakes, etc.
Never been inframed.
I did pull the tranny at something over a million and took it in to be freshened up.
$2300.

Before that was a '94 Volvo with around 400k.
I did have that one inframed at nearly a million miles.
$9k.
And a clutch, maybe two [don't recall].

Other than a water pump or alternator here and there along with tires and brakes...
never mind, I'm just being argumentitive.
;)

But I run cheaper than any gringo this side of I-20.
:)
 
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