lease purchase idea/history?

[mudflap276]

just to make conversation here. but does anyone know where the lease/purchase idea ever came from or how long its been around? just curious on some background on the program the is driving so many drivers into the poor house; or so its reported. :wink:

[yoopr]

It pretty much started in the Early 80's when you could put down a couple of bucks to get a truck.

[mudflap276]

thats about the time frame i was thinking.

[Sealord]

It started when trucking companies realized they could put all the expenses of "owning" a truck on an individual who was then totally responsible for all costs including the individual's pay. What ever remaining costs there were could be written off by the company with the possibility of getting a depreciated tractor back that could be recycled to another O/O wannabe who didn't have the assets or credit standing to finance his own truck. Win win for the trucking company. BOL

[Skywalker]

Personally... I think that leasing a truck from a company is a lot like being told that "If you can stay on your feet for two rounds with the Heavyweight Champion Boxer of the World...you will get a prize of $100,000.00"..... You last the two rounds.....and then get told...."Here's a dollar for bus fare, the rest of it got eaten up by expenses". :shock: :shock:

These guys that want to lease these trucks....whether the excuse is "I don't have $20,000.00 for a down payment", or ??????..... are doing it for the wrong reasons.

If they want to run a business, then they have to approach it in the right manner. You gotta crawl before you walk, and you gotta walk before you run.

There have been lots of people who have been very successful and made a good living in this industry......but probably for 99% of those... their first truck, or even their first 3 trucks WERE NOT NEW or even "late models".
They BOUGHT a used truck when they SAVED up the money while working for someone else....and either paid cash, or financed a small amount, then leased it on with someone. So, they had no payments to the lessor, and the truck was theirs. This has some effect in the real world. Two effects are, first..since the driver owns his truck...the company knows that they are not likely to be able to jack him around....and he can up and leave whenever he chooses and they are powerless to stop him. There is no "Damocles Sword" over his head, instead that sword is hanging over the company's head, so the company he leases on to will not risk doing him wrong.

I'm guessing that some people will disagree with me, but I have a sneaking suspicion that the Owner Operators here will agree with me more than they disagree.

I think that tooooo many people fall for the slick advertising and let the cart get in front of the horse. It gives them the impression of looking at a "sure thing".... But they forget that age old adage "If it sounds too good to be true, then it probably is."

I also wonder how many of these people who have become lease operators at some company have taken the time and spent the $100 to $300 to have a lawyer with transportation experience to read and give advice or his opinion on the merits or flaws in the lease??

But sadly, probably only 1 in 100 do it, the rest read the "you're gonna get RICH"!! propaganda, see all the pretty chrome, and get that Homer Simpson look of glazed eyes and just sign anything put in front of them.

Now, these are more than likely the very ones who can't cough up the cash to survive two weeks without a paycheck, can't make the down payment on a car, have crappy credit, are one or two steps ahead of the collection agencies....and mistakenly believe that leasing a truck and pretending to be owner-operators is their personal "holy grail".... and think that this is their personal route to being a millionaire. Wrong. All they will manage to do, for the most part is stay one more step ahead of the collection agencies....but they will have added another layer of trouble or impending doom...... and all the while spending every moment with a "Damocles Sword" over their heads.

Geeez, if I was just a little younger, had more motivation than I do, and wanted to commit my resources.... I would round up some cash, buy some trucks, print some glossy ads and sign the suckers up. PT Barnum said: There's a sucker born every minute. This industry is living proof that they are out there.....

Sorry for the rant....but dagnabbit, sometimes you just gotta.

[mudflap276]

Personally... I think that leasing a truck from a company is a lot like being told that "If you can stay on your feet for two rounds with the Heavyweight Champion Boxer of the World...you will get a prize of $100,000.00"..... You last the two rounds.....and then get told...."Here's a dollar for bus fare, the rest of it got eaten up by expenses". :shock: :shock:

These guys that want to lease these trucks....whether the excuse is "I don't have $20,000.00 for a down payment", or ??????..... are doing it for the wrong reasons.

If they want to run a business, then they have to approach it in the right manner. You gotta crawl before you walk, and you gotta walk before you run.

There have been lots of people who have been very successful and made a good living in this industry......but probably for 99% of those... their first truck, or even their first 3 trucks WERE NOT NEW or even "late models".
They BOUGHT a used truck when they SAVED up the money while working for someone else....and either paid cash, or financed a small amount, then leased it on with someone. So, they had no payments to the lessor, and the truck was theirs. This has some effect in the real world. Two effects are, first..since the driver owns his truck...the company knows that they are not likely to be able to jack him around....and he can up and leave whenever he chooses and they are powerless to stop him. There is no "Damocles Sword" over his head, instead that sword is hanging over the company's head, so the company he leases on to will not risk doing him wrong.

I'm guessing that some people will disagree with me, but I have a sneaking suspicion that the Owner Operators here will agree with me more than they disagree.

I think that tooooo many people fall for the slick advertising and let the cart get in front of the horse. It gives them the impression of looking at a "sure thing".... But they forget that age old adage "If it sounds too good to be true, then it probably is."

I also wonder how many of these people who have become lease operators at some company have taken the time and spent the $100 to $300 to have a lawyer with transportation experience to read and give advice or his opinion on the merits or flaws in the lease??

But sadly, probably only 1 in 100 do it, the rest read the "you're gonna get RICH"!! propaganda, see all the pretty chrome, and get that Homer Simpson look of glazed eyes and just sign anything put in front of them.

Now, these are more than likely the very ones who can't cough up the cash to survive two weeks without a paycheck, can't make the down payment on a car, have crappy credit, are one or two steps ahead of the collection agencies....and mistakenly believe that leasing a truck and pretending to be owner-operators is their personal "holy grail".... and think that this is their personal route to being a millionaire. Wrong. All they will manage to do, for the most part is stay one more step ahead of the collection agencies....but they will have added another layer of trouble or impending doom...... and all the while spending every moment with a "Damocles Sword" over their heads.

Geeez, if I was just a little younger, had more motivation than I do, and wanted to commit my resources.... I would round up some cash, buy some trucks, print some glossy ads and sign the suckers up. PT Barnum said: There's a sucker born every minute. This industry is living proof that they are out there.....

Sorry for the rant....but dagnabbit, sometimes you just gotta.

that was well said.