Thinking about Doing a lease/ purchase with Knight...

Have been trying to purchase a Pete 379 (Used), but with an unknown mark on my Credit report I have been running into a wall. So in order to get back into a Pete I have been concidering doing a lease/purchase of a Pete and a Refrigerated trailer threw Knight Truck Sales. Their trucks don't seem to bad on pricing but do they give you the freight and keep you moving. My Business plan is modeled on 3000 miles per week at around $1.20 /mi., including FSC. That is about the mininum to keep my head above water.
Has any one had any experiance with L/P threw Knight?

Thanks and keep the pavement on the dirty side....:tiphat:
 

Biker

Yes, I am!
With the freight issues right now, I think 3000 per week is overly optimistic. I'd redo the business model and draw one up using a worse case scenario and work from there.
 

FlatBroke

Well-Known Member
I would be looking at the Lease Purchase contract very close...Most if not all Lease Purchase Contracts through a company are no good...

It just basically makes you a glorified company driver. You have the option to turn loads down and go home whenever you like..and because you never own the truck.

I don't know a thing about Knight..but if there lease purchase is the same as any other lease purchase every other company offers...I would stay away from them..
 

Sinister

Order of The Gilded Flip Flop
Staff member
Supporter
I had a friend who leased on with Knight a few years back. He ended up shooting himself in the foot, but that's another story. Anyway, he wasn't getting rich, but he was treading water. Of course, this is a few years ago when frieght was really cranking along, so the above advice about lowballing your revenue is probably a good idea.

His dispatcher seemed more than willing to accomodate my friend, and a lot of wha the did was terminal to terminal, so to me as a flatbedder, I thought my friend had the world by the butt.
 

greybeard

Well-Known Member
I would be looking at the Lease Purchase contract very close...Most if not all Lease Purchase Contracts through a company are no good...

It just basically makes you a glorified company driver. You have the option to turn loads down and go home whenever you like..and because you never own the truck.

I don't know a thing about Knight..but if there lease purchase is the same as any other lease purchase every other company offers...I would stay away from them..
Agreed FB! :cheers:
 

J.R.

Well-Known Member
MY FRIEND the problem with a lease purchase with a company is you NEVER get to own the truck and you barley make enough money to get buy, NOT A GOOD THING .
AND THE PROBLEM YOUR HAVING BUYING A TRUCK IS A COUPLE OF THINGS first its a lot harder to buy a used truck then a new one thats a hang over from days gone buy when trucks were a lot worse then they are today, but the main problem is the credit markey right now is locked up tight , no one is lending money or finanching trucks the banks are just not willing to finance , unless of course you give them a lot of information that they have no business with and you put your first born as colederal in this econamy thats the way it is ive been trying to add another truck sinch october and still no luck because i refuse to give them a lot of personal information that they dont need such as the two years of income , just not going to play the game there way after all they created the problem WE DID NOT so why should we keep on paying for there screw ups .
so its problem not your fault or your credit there is no credit right now .
GOOD LUCK MY FRIEND J.R. HORTON
 

greybeard

Well-Known Member
IMHO
The lease thing has taken off in the last 10 years because it benefits the companies that offer them. NOT you the driver. That part is a fantasy.
I inquired, and broke down the numbers on a couple of the lease offerings out there and found that a lease operator makes no more "net" income than a company driver.
Bottom line...lease operators aleviate the company of the expense of operating a fleet by taking that responsibility/risk onto themselves.
I'll drive the truck to make the company money, but I wont pay their bills for them.....
 

Mike

Well-Known Member
Staff member
When you are building a business model like this, never factor in 3000 miles per week. "3000 miles per week" is a generic term that gets thrown around the trucking industry, and something that very few people are going to average.

The percentage of solo truck drivers that manage 156,000 paid miles per year is going to be very low. I would say in the low single digits.

If you plan on staying out alot, and working hard, plan on an average of 2400 per week (which puts you right at 125,000 per year), hope for decent luck, and have money put back for whenever you are going to take time off, because those lease payments don't take time off.

That said, I doubt very seriously this is a good plan for you. I don't know of a lease purchase plan that is good for a solo driver. A husband/wife team that runs like a true team? maybe. Even then, they would be better off in a company truck and saving up for the actual purchase of a truck, rather than leasing.

Lease purchases, from every angle I have looked at, (and I have tried them in the past) benefit nobody but the company. It reduces the amount of paperwork they do, and reduces their cost per mile to move freight.
 

sparky

Well-Known Member
I know this is an old post - wondering if you leased on with knight? Yes - how is it and are they planning on selling? If no, where did you go?
 
yeah i low balled my figures too an someone said its the same income as a company driver an theyre about right w all the dedutions n deposits n so on an the trks r like 04-06s so u know ull be on the side of the road soon....jus be careful ur lookin at 350-400 a week paymt....they hav a slindin scale i think he said bout .90-1.20/ mi + fsc and u get a discount off ur comdata card not sure what that is. i mean it can be done but u wont get rich.....im gettin miles now w my dispatch an im itchin to lease but worried about alot of stuff
 

Creature of the Wheel

Well-Known Member
yes, i notice this thread is a bit old. i'll respond anyway.

leasing a truck from the company you drive for is the stupidest thing anybody can do. at knight and many other companies out there, you're nothing but a glorified company driver. yeah, you can go a whopping 66mph, decline as many loads as possible, and go home for long as you want. i see lots of l/o's at knight running containers to and from long beach, lebec, las vegas, and back to phoenix all the time. now with the e-logs fleetwide, i don't see how it's even possible to really make as much money as before, in a down economy.

from the l/o's i've seen complaining inside of the company lounge in phoenix, it seems many of them are a bit depressed over the fact that their hunk o' crap trucks are always in and out of the shop, being charged a certain amount per hour that it's in a company shop that is outside of their home terminal, and then complaining about driving all around for a non-existent empty trailer. many of them seem to be unable to afford to shower more than once per week.
 
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