Can Lease purchase work for teams?

[truckerchuck07]

I've read a few horror stories about LP and how the driver usually gets the raw end of the deal . Does anyone know of any team drivers out there that have LP and been able to get through a LP succesfully. I have been a company driver for three years and would like to get into my own truck. My wife has her CDL permit just needs to take the road test. If there were two driving making more miles would it be easier then to get through a LP without going in the hole. I realize more miles also means more maintenace, tires and so forth. With our credit though we cant just go and buy a truck. Whats your thoughts on this?

[sidman82]

Teal95KW has a nice truck for sale. Good price for a start up truck.
Go to the what was your first truck thread, and he has a link to it.

[truckerchuck07]

Finding a nice truck for sale isnt the problem. Finding the cash is. I don't have good enough credit to get a loan to buy a truck.

[Deus]

Finding a nice truck for sale isnt the problem. Finding the cash is. I don't have good enough credit to get a loan to buy a truck.

I think you should do it right and save some money and buy a truck not lease one. I've never been a O/O but am just relaying what I've gathered.

I've actually considered going O/O and maybe I will someday (if I'm still single when I pay off the house in a few years.)

Why not run team with your wife as a company driver for a few years, save up and buy a truck outright? Or even with bad credit, a substantial down payment will show the bank you are serious.

[GMAN]

I think you have your priorities out of order. If your credit is shaky, the first thing I would suggest to you is get your credit in good shape. Pay off your bills and get out of debt. If you and your wife are both driving, there is not reason you could not save enough in a year to pay cash for a decent truck. I don't know anything about your financial situation, but if you can keep your expenses down and bank 1 paycheck you can put a lot of money back in a year. I recall meeting a couple who ran team several years ago. They ran for about 5 years, saved their money and were in the process of building their dream home with CASH!!

I would check my motivation for wanting to become an owner operator. If it is to make more money, then leasing is not the answer. You will make more money as a company driver. I ran into another couple who were with Covenant and ran team. According to the wife, they made about $0.28/mile after expenses. I don't understand why anyone would lease a truck and run for that little money when they could be a company driver, earn more money and not have the associated responsibilities of running the truck.

When you lease a truck from a carrier, you have all the expenses of running a truck, but will likely never own it. If I am making truck payments I expect to eventually own the truck. When you lease a truck from your carrier, you are making their payments for them. You make the payments, they own the truck.

[truckerchuck07]

Yea your probaly right. Just took out a new morgage on house. Dont want to ruen that either by getting myself in dedt with a truck.

[TK THE TRUCKER]

While working at Marten I ran into another Marten driver at my pick up. He and his wife were doing a lease purchase and running team. He said they were actually doing pretty good with it but it was short lived. His wife fell ill and had to come off the truck and stay at home permanently. Well leasing the truck as a team the weekly payment was doubled because of the depreciation from all the miles. He was stuck running by himself and trying to make the over $1000 a week truck payment. He said he was considering turning the truck in. This conversation was shortly after his wife came off the truck, maybe he was able to renegotiate his lease agreement, if that's even possible, but wasn't sure what he was doing.

[person]

I met a l/p o/o from Swift that said her truck was getting paid off very soon and that she needed to decide what to do, get another one or what :shock: :shock: She was always set up with her own employees or trainees, and only ran team.

This was a few years back.

[no_worries]

With a CPM carrier, you won't make any more as an O/O than you would as a company team. You might even make a little less depending on a few things. You will have more freedom and that's the question you have to answer for yourself.

[marcel27208]

With a CPM carrier, you won't make any more as an O/O than you would as a company team. You might even make a little less depending on a few things. You will have more freedom and that's the question you have to answer for yourself.

this is soooooo true!!!!

[BanditsCousin]

Swift doesn't have a payoff on their LP program. I belive its like a 40,000 dollar balloon payment at the nd, or 37. I forgot exactly, but its on their website.

[truckerchuck07]

Thanks for your post. I appreciate your input. One of the reasons for considering an LP is it is one way to get into my own truck without needing a huge down payment that I dont have at this time.It would also give me a trade in at the end of the LP. The other reason is having the freedom of being an O/O . If we could drive team maybe we could do alright on an LP. Not going to do anything yet though, still weighing it all out.

[GMAN]

Rather than getting involved in a fleece purchase deal, perhaps you should start saving money out of each paycheck for a good down payment or to pay cash. When you lease a truck, it doesn't belong to you, it is the property of the carrier. It is also very unlikely you will ever own it. You always pay more for one of these fleeces than you would if you buy a truck. There are not shortcuts to owning a truck. It isn't always easy, but when you get your own financing or pay cash, you can go anywhere you wish if things don't work out where you are leased. If you lease a truck from a carrier, you cannot leave with the truck until it is paid for in full.

[no_worries]

My advice would be to drive as a company team for awhile. There's no guarantee that you're wife is going to enjoy the lifestyle or that you two will work well as a team, i.e. sleeping in a moving truck. Better to find these things out before you put your financial future on the line. If all goes well, the cash rolls in pretty fast as a company team and you'll be in a strong financial position in no time. Then you can make the move if you still want to. Don't be in hurry, that's when people get themselves in trouble. Go slow, know all the answers before you jump into something and you'll be much better off. Good luck.

[Truckdobe]

Running more miles for the same low rate will NOT improve your bottom line. Leases are so popular because they are so profitable for the companies and because people will not take their time, save their $$ and buy a truck.

Run for a company, there are almost NO cpm companies paying a mileage rate that will allow you to maintain your equipment and pay yourself a decent wage with benefits.

Do the math, you have to make a lot of $$ over you REAL COST PER MILE to pay the extra taxes, assume the extra risk and PAY YOURSELF!

[truckerchuck07]

As far as the wife goes she was my co-pilot as I called her for three years. She likes being out on the road and was actually a big help. She knows how to do all the paperwork, get directions,and even helped tarp loads. I was a flat bedder by the way. Maybe I will set the idea away for a while of being an O/O till I can get enough put away to buy outright. I,ll check around for a company that will hire me and then try to get my wifes road test done so she can drive with me as a team.