Does anyone know anything about this? http://www.pwli.com/

Making lease payments is a tax benefit??

Lets say I wanted to buy a truck for $40,000 and wanted to go through these guys. I'd pay a lease payment every month and at the end of my term make a %10 baloon payment at the end and the truck is mine?

I'm confused. :?

That really suprises me that nobody can tell me about this.

How many members on here want to talk about "fleece" purchasing (and I agree to some extent) but here I am offering a way for you to lease a truck of your choice outside of the company you work for! (and no I don't work for this company, I'm an OTR driver)

Give me some feedback folks? GMAN?

The obvious disadvantage to this is you would still be responsible for the routine maintenence and breakdown. As well as building no equity in it :shock: but the advantage of it is, if things arent going so well at the company you're at now you can go to another company.

[Arizona]

I would tend to stay away from programs like this. Words like non-cancelable, and lessee pays all taxes and insurance fees, are red flags when you have a monthly payment during slow times.

There are tax advantages to leasing, but only if you are making a huge profit, and not scraping by week to week.

Just my opinion, and I was a bit turned off by their web site, seems like a company that has been around since 1987 could afford a better site.
Not to mention that they seem to have their hands in all kinds of commercial equipment, makes me think they have too many irons in the fire to be able to be focused.
I could be wrong, but first impressions,....you know what they say.

Here's a copy of the email that was sent to me...

Originally Posted by Mary C.

Hi XXXXX,

I realize we had a short conversation and that you are uncertain as what option is the best for you either a loan or a lease. If it is important to you that you own the truck and have equity in the truck than a loan may be a better fit for you. However, I think leasing is a great alternative in light of the tax benefits that it offers. I put together some thoughts about our leasing program.



- Leasing provides your company with tax advantages that you can’t achieve when you pay with cash or finance with a traditional bank loan. Alternatively, write off 100% of each monthly lease payment as an operating expense throughout the entire lease term.

- Park Western Leasing has the ability to finance used trucks and trailers, compared to bank lenders who are typically less familiar with the useful life or resale values thus stick to doing new equipment or something less than 3 years of age.

- Park Western Leasing does start-up owner/operators on a regular basis. Why use the entire cash amount that you have set aside, (50%), to purchase this truck instead use a portion of that money and save the rest for working capital in your business. You will have a cushion if the truck you purchase needs work down the road without compromising your cash flow, plus you have a tax deduction of your payments as an operating expense.

- Park Western does long-term lease financing with a 10% residual purchase at the end of the lease term, 24 or 36 months on a new owner/operator.



Everyone that you talk with will have a different opinion to offer you when it comes to finance but you will need to determine what is best for you and your business. I would like to tell you that Park Western Leasing has been in business for 20 years as a middle market funding source in the leasing industry. We hold our own paper and are a relationship driven company. I personally believe in the focus of building relationships with my vendors, prospects and customers. We have some customers who have done over 30 leases with us as a company. You can be assured that you and any referrals will be treated with respect and professionalism.



I have attached a lease application and if you are interested in pursuing this lease with Park Western I will need to following in addition to the attached application.

- 2004 and 2005 personal tax returns

- 2006 year end W2

- 3 months most recent bank statements

- Truck Specs



We require that you carry insurance on the truck including bobtail insurance. I often work with truckers who run their insurance through their carrier, this is common practice with many of my customers.



If you have any additional questions, please don’t hesitate to call me my contact information is below.



Kindest Regards,



Mary

So what do you guys think?

Originally Posted by Arizona

I would tend to stay away from programs like this. Words like non-cancelable, and lessee pays all taxes and insurance fees, are red flags when you have a monthly payment during slow times.

I agree with the "non-cancelable" part but I intend on being a driver for a long time. Plus I the company I drive for has a very resonable insurance rate.

The taxes are going to be bad no matter what. Self-employment taxes are double what social security is.

Originally Posted by Arizona

Just my opinion, and I was a bit turned off by their web site, seems like a company that has been around since 1987 could afford a better site.

Can't always judge a book by it's cover though. I'd also like to mention that they come up clean on Denver's Better Business Bureau website. Not to say that's %100 foolproof.

[Dejanh]

Lease payment is tax deductible 100% because you use it to run a buisiness, everything you spend on it is tax credit that you can use to write off from your gross profit so you dont pay income tax on your buisiness expenses..there is tax that you have to pay thru that payment regardles and thats another thing...

10% of the payment that you have to give them at the end of that term is VERY HIGH and right there i would scrape them off my list..

I currently lease my truck through my local bank where i pay 100$ at the end and truck belongs to me + interest rate is better than a straight out purchase, all said and done my suggestion would be to go elsewhere for your credit needs..


Good Luck

[Arizona]

I would come up with a number for what you want to lease, and then follow it to its logical conclusion.
You will know exactly how much the %10 buy out amount is. Just take the length of the lease, the cost of whatever insurance THEY require you to carry, divide by your monthly payment, and you will be able to tell if its worth it.

I looked at their equipement to lease, and with nothing newer than an 03 T-2000, I would worry more about being able to keep the vehicle on the road, and out of the shop.
Remember, if it sits, you make no $$, and I'm sure THEY can cancel the lease anytime they want,....even if the truck is broken down and you are trying to make ends meet.

I saw some of the trucks were as low as $19,000, but they were mid 90's and a bit worn looking. I would steer clear of this kind of program. It seems like a revolving "tired iron" mill. They are in it for the $$ not the personal relationship.
I could be wrong, I only play a truck driver on T.V.

Originally Posted by Dejanh

10% of the payment that you have to give them at the end of that term is VERY HIGH and right there i would scrape them off my list..

forgot to mention that I'm looking at a used FL classic for $40k

so $4,000 at the end of the term aint that bad, right? Depending on the terms of course...

Originally Posted by Arizona

I looked at their equipement to lease, and with nothing newer than an 03 T-2000, I would worry more about being able to keep the vehicle on the road, and out of the shop.
Remember, if it sits, you make no $$, and I'm sure THEY can cancel the lease anytime they want,....even if the truck is broken down and you are trying to make ends meet.

No I have a truck in mind that I want to get, nothing from them!!