[joea192]

hello i am trying to find an o/o who is sick or wants out of the busniess so i could lease purchase there truck ther r two many companys out there that will rip u off on therer so called lease purchase i have a company who would be willing to pay directly to u {the payment ] i hope someone could help me u can reach me at [email protected] ty for takeing the time to read this ad joe

[Windwalker]

In the years I drove trucks, I believe it was a grand total of about 3 times when I heard that something like that came up.

[Musicman]

What's wrong with either saving up a little cash and buying a cheap truck at auction or even Ebay for $20k or $30k, or going to a used truck dealer and financing a truck in the traditional manner?

[mgfg]

Originally Posted by Musicman

What's wrong with either saving up a little cash and buying a cheap truck at auction or even Ebay for $20k or $30k, or going to a used truck dealer and financing a truck in the traditional manner?

That's too much work and he wants it NOW!

Welcome to the "immediate gratification generation"!

[solo379]

I've tried that once many years ago with the "friend of the friend"...Got lucky, only lost 12 grand, and the "friend" of course....

[Musicman]

Originally Posted by mgfg

That's too much work and he wants it NOW! Welcome to the "immediate gratification generation"!

I get that, but he would be way better off cash-flowing the whole thing AND leaving $10k in the bank for unexpected repairs, especially if I am correct in my assumption that this would be his first truck.

If he just absolutely doesn’t have the discipline or patience within himself to do this the smart way, and if he has stellar credit, Old Republic Finance (OOIDA is using them) or GE Capital will do 7% to 8.5% on new and late model equipment with zero down. They might try telling you that they require a down payment, but that's just posturing. With credit scores in excess of 800, they will waive the down payment, although they usually want you to have a few years under your belt as an O/O before they will finance you (because most new O/Os FAIL, and they don't want to have to go repo the equipment when you cant pay for it). FYI, ORFC has no early pay-off penalty but GE does.

[Musicman]

I still have an old co-driver who owes me $190 from 2002 when I used to loan him money to pay his car loan or phone or power bills... and HE was first seat driver and making more than me. You really never should do a business deal with a friend where there is any amount of risk involved, because it will very often cost you money and your friendship. And NEVER do business like that with family. It seems that the closer someone is to you, the more they feel it's okay to screw you over. They didn't write that song, "You Always Hurt the Ones You Love" for nothing, I tell ya'.

[golfhobo]

At least this guy is HONEST and telling you up front what he would LIKE to be able to do.

Maybe he doesn't HAVE a credit score over 800... or a bank account to buy a used truck. He SEEMS to have what most of you would like to have... a company that has loads and will pay directly to YOU.

Obviously, I don't know nuthin. But, I would at least want to take a look at this.

[Musicman]

Originally Posted by golfhobo

At least this guy is HONEST and telling you up front what he would LIKE to be able to do.

Maybe he doesn't HAVE a credit score over 800... or a bank account to buy a used truck. He SEEMS to have what most of you would like to have... a company that has loads and will pay directly to YOU.

Obviously, I don't know nuthin. But, I would at least want to take a look at this.

Okay, so let me get this straight, Hobo, Joe (the OP), is cool because he is being honest and asking a question, but when we give him honest opinions that, at least in my own case, come from keeping my eyes and ears wide open while navigating over and around the pitfalls that destroy many ambitious drivers in this business while putting over fifteen years behind the wheel, makes me unsavory in your opinion?

I don’t fault Joe for having ambition and I certainly won’t disparage him for asking questions; but I would be a poor human being for NOT trying to inform him of how bad his idea could be for him and for someone that takes him up on this highly unusual arrangement. The vast majority of leased on operators fail in their first attempt. This is why lenders demand lots of O/O experience and stellar credit before they loan money at even marginally decent rates on commercial equipment. A guy with no previous O/O experience and or marginal credit is going to pay through the teeth for interest, NOT because the lenders are trying to screw the little guy, but because the higher the rate of default on a particular loan class, the higher the interest must be to compensate the lenders for their anticipated loss. If I want to make 5% on my investment and I know that I’m like likely to see a 50% default rate and loss of principal, then I have to charge the good folks I’m lending money to enough to cover my losses and still yield me my expected 5%.

In my years in this industry, I’ve found that the trucking industry as a whole is shady and predatory, and new and naïve owner operators fresh off the turnip truck seem to be everybody’s favorite snack. I’m simply suggesting to Joe that he exercise as much caution as he can and do everything he can to stack the deck in his favor. His idea could work, but if he doesn’t even have the money to put a down payment on a truck and purchase it in a more traditional fashion, what is he going to do when a month or two down the road he needs to replace a $2k or $3k turbo, or needs a couple tires at $500 a piece? Plenty of people go out and lease or purchase a truck they can’t afford to maintain, when they really should wait and cash flow it. I bet if you surveyed all those who lose their butts as O/Os, you’d find that nearly all of them started without the minimum money needed for repairs or other unplanned expenses. A person might make it without cash reserves IF he or she is very lucky and has no big repairs until he or she has time to build up a proper maintenance fund; but if that is your business model, why not just go to the casino and gamble with borrowed money, after all there really isn’t any difference, except you can get drunk for free while you lose all that money.

[golfhobo]

Musicman said:

Okay, so let me get this straight, Hobo, Joe (the OP), is cool because he is being honest and asking a question, but when we give him honest opinions that, at least in my own case, come from keeping my eyes and ears wide open while navigating over and around the pitfalls that destroy many ambitious drivers in this business while putting over fifteen years behind the wheel, makes me unsavory in your opinion?

I didn't SAY Joe was "cool," and I didn't say YOU weren't. Actually, I was still making an allusion to Scarleone! LOL. But, I was also saying that it MIGHT be a workable situation for someone who didn't HAVE thousands of dollars in the bank or a perfect credit score.

I have been working HARD for the last few years to get my credit score up to a "low risk" level. About 750 now, I believe. I'm thinking about buying a HOUSE for the first time. But, I've also been thinking about buying a truck. Don't have the $30k or so that GMAN says I should have before getting into the business, but I will in another year or two. I am patient.

I know I can get a 4 yr old Columbia for about $20k, and I've driven them before. They'll pull 80k pounds up every hill between NC and CA without pitching a fit. And I suppose I can lease on to some company that will find me loads. But.... since I already work for FedEx, I've wondered what it would take to get a truck leased on to them? I've thought about asking my O/O boss if he would be INTERESTED in helping me to do so... for a percentage. You see.... there are ALWAYS deals to be made!

I don’t fault Joe for having ambition and I certainly won’t disparage him for asking questions; but I would be a poor human being for NOT trying to inform him of how bad his idea could be for him and for someone that takes him up on this highly unusual arrangement. The vast majority of leased on operators fail in their first attempt.

No doubt you are right about first time lease operators. And like I said... I don't know nuthin! But... I think SOME of the first responses to this new poster WERE "disparaging" and presumed facts not yet in evidence.

He shows a knowledge that MOST companies' lease plans are ripoffs. That's miles ahead of the usual poster who asks if he should lease on with England or Prime... right? And he apparently is bringing a SHIPPER to the table that will pay YOU straight out... with you paying HIM! Truly an "unusual arrangement."

This is why lenders demand lots of O/O experience and stellar credit before they loan money at even marginally decent rates on commercial equipment.

Forgetting for the moment that the O.P didn't mention BUYING a truck on credit, but rather working a deal with someone who is no longer able to OPERATE the truck he "may" still be making payments on.... HOW can a lender loan money to a buyer who wants to be an O/O if the buyer is wanting to buy the truck to BECOME an O/O but has no experience as an O/O (in which case, he would already HAVE a truck?)

A guy with no previous O/O experience and or marginal credit is going to pay through the teeth for interest, NOT because the lenders are trying to screw the little guy, but because the higher the rate of default on a particular loan class, the higher the interest must be to compensate the lenders for their anticipated loss.

Which is WHY the O.P. was asking if ANYONE could help him get into a truck without going through the normal channels. I would guess he was willing to drive for "driver" wages while paying the balance of the load payment to the owner of the truck if some of it went towards his equity and maintenance accounts.

If I want to make 5% on my investment and I know that I’m like likely to see a 50% default rate and loss of principal, then I have to charge the good folks I’m lending money to enough to cover my losses and still yield me my expected 5%.

But.... if you already OWN the truck, and are too sick to drive it (or whatever situation the O.P. envisioned) and would like to see profitable load payments as opposed to making payments on a truck that is not MOVING.... you might want to consider the O.P's ideas.

In my years in this industry, I’ve found that the trucking industry as a whole is shady and predatory, and new and naïve owner operators fresh off the turnip truck seem to be everybody’s favorite snack.

We ALL know this. What part of the O.P's post led you to conclude he was a "tin-horn?" Maybe he is. I'm not. 7 years is all I can boast of... but, I've had similar ideas. MY boss has an extra truck or two, and sometimes I think about asking him what kind of deal he would make to get them moving and getting paid miles.... while "I" earn equity in the truck.

I’m simply suggesting to Joe that he exercise as much caution as he can and do everything he can to stack the deck in his favor. His idea could work, but if he doesn’t even have the money to put a down payment on a truck and purchase it in a more traditional fashion, what is he going to do when a month or two down the road he needs to replace a $2k or $3k turbo, or needs a couple tires at $500 a piece? Plenty of people go out and lease or purchase a truck they can’t afford to maintain, when they really should wait and cash flow it.

Cash Flow it? Sounds risky to me. FedEx matches your maintenance account. Fuel surcharge and all that. I think the O.P. was willing to defray much of the profits to the truck owner for such things. I'm just guessing.... cuz, I don't know NUTHIN.

I bet if you surveyed all those who lose their butts as O/Os, you’d find that nearly all of them started without the minimum money needed for repairs or other unplanned expenses.

Gotta agree with THAT! In golf they say that "nearly half of all the putts that don't get to the hole, don't go IN!" LOL!

A person might make it without cash reserves IF he or she is very lucky and has no big repairs until he or she has time to build up a proper maintenance fund; but if that is your business model, why not just go to the casino and gamble with borrowed money, after all there really isn’t any difference, except you can get drunk for free while you lose all that money.

OR... you could maybe ask if anyone had a truck, for which they already HAD a maintenance account built up, that was not making any miles.... and might need a driver who would take a percentage of the load, AFTER savings accounts, for a percentage of the equity.

Just sayin...