Lease Programs

[trkntxn]

I was wondering if any of you drivers had any positive experiences with a companies lease to own programs. I know from what Ive seen and read that most of them are a rip off. Am curious if anyone has had any good experiences with it. I run local myself ( north texas) , but my brother is really considering trying to buy a truck this way. I cant seem to persuade him not to. Hes considering going with a co. just for this. Hes a tanker yanker in houston. Thanks for any help

[GMAN]

Your brother needs to understand that leasing a truck doesn't necessarily mean that he will actually own it. He needs to save his money and buy a truck, if that is what he wants to do. There are no short cuts when it comes to owning a truck. Going with a carrier just because they have a fleece program isn't a very good reason to sign on with a carrier. Most carriers who offer those programs pay low mileage rates and have high weekly payments. If he is considering this type of fleece, he probably has no money and poor credit. He needs to understand that he could easily be in worse shape if he gets involved in one of these programs. It costs a lot of money to operate a truck.

[Uturn2001]

Very few lease purchases are true purchase programs. Many of them you lease the truck for a certain amount of time and then if you want to actually buy the truck then you can for "fair market value." Depending on the payments and length of the lease you may find that you could have bought two trucks, on payments, for the true cost of that lease truck.

[trkntxn]

Hey Thanks for the imput guys. Im trying to convince him to stay away from it, as Ive heard and seen nothing but negative on it. He actually has good credit, I honestly cant figure why hes considering this now. But Thanks for the help. If he sees someone else agreeing with me maybe he will listen I dont know.

[MADLUX]

He would be better off finding a good used truck for about 20 to 25k and lease onto a carrier, then do the lease purchase scam.

My uncle did that in order to get a new truck once. This happened about a year ago, did the lease purchase deal for a month and after expenses only made $97 dollars, needless to say he turned the truck in.

[kc0iv]

Hey Thanks for the imput guys. Im trying to convince him to stay away from it, as Ive heard and seen nothing but negative on it. He actually has good credit, I honestly cant figure why hes considering this now. But Thanks for the help. If he sees someone else agreeing with me maybe he will listen I dont know.

One option to look at is Selectruck. They have a first time buyer program. $999 down WAC 2 yr limited warranty.

Most are Freightliners but they have a few non-Freightliners.

One thing I liked these are NOT leases.

kc0iv

[abc123]

its about $0.85 cpm to run your own truck, then they lock you in a lease and pay you $0.90cpm,

if youre gonna do a lease, talk to people that are in a lease with the company, , then do your own math and see if you will be happy with the program

but in general as said here a thousand times, STAY AWAY

[GMAN]

Select is certainly an option, but you will pay about $20,000 over retail, plus interest rates tend to be higher than going through conventional lending sources. You will still have a fairly high payment with Select. As I recall, payments run about $1,600/month. Given the choice between Select or fleece through a carrier, I would go with the Select. You will over pay with either.

[dieselgrl]

I did a lot of research before I entered into a lease program....most of them are scams, and I won't argue with that.

However, that said, I am doing quite well under Arrow's program so far, but it was designed as a true lease purchase program from the beginning, not a trade in plan where you never own the equipment. It's also undergone some changes since I signed my contract, and not all of them are positive in my mind for the new leasers.

Buying outright is best, but for someone like me with major credit hurdles to cross, leasing was a good and viable option. It's not for everyone.

[rvrjr7]

Im doing a lease purchase right now but i did all kinds of research and also did some checking and looking at other equipment before making the move. i got a better deal for my truck than if i would have went to like selecttruck. its a higher monthly payment but not a very long term on a 2004 freightliner columbia set up for flatbedding with lower miles and gets fairly decent mpg but i wont be happy until i get 9mpg but thats just cause im greedy. if things go good my truck will be paid off by the end of the year 1 dollar buyout and nothing in the contract about prepayment penalities. ya ive had to stick money into the truck but i my belief is to keep up on the small problems before they turn into expensive big problems

[kc0iv]

Select is certainly an option, but you will pay about $20,000 over retail, plus interest rates tend to be higher than going through conventional lending sources. You will still have a fairly high payment with Select. As I recall, payments run about $1,600/month. Given the choice between Select or fleece through a carrier, I would go with the Select. You will over pay with either.

I guess I was lucky. My payments were $1000/mo. With an interest rate of 8.65%. With a $999 down payment. I couldn't get that kind of deal with any of the banks I dealt with.

kc0iv

[GMAN]

It sounds like you got a deal that was manageable, kcOiv. You should be able to handle a $1,000 monthly payment. That is a much better interest rate than I have heard coming out of Select. As I recall, most of those with whom I have spoken over the years have an interest rate as high as 19%. :shock: