can anyone help me?
 

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

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.

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"!

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....

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.

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'.

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.

Musicman said:

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!

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."

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?)

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.

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.

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.

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.

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!

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...

I wasn't being literal in that statement and I didn't think the bulk of your chastisement was focused on me.

I brought my credit score up from 480 to the 812 it is now over the last ten years. It takes a lot of vigilance. Anything over a 720 FICO is generally considered “A credit” and will qualify for the lowest rate mortgages, which right now you can get close to 3.5% on a traditional 15 year fixed. Thanks to the collapsed housing market, there has never in any of our lifetimes been a better time to buy a house. I'd jump on it right now if I were you.

I’m baffled as to why you’d want your own truck. I don’t spend that much time on CAD, but I’m pretty sure I’ve seen you mention how great you have it and how you love the fact that when you’re not on the road, your time is completely your own. I think you’ve even alluded that those of us who own trucks are crazy for doing so. Again, I could be wrong, but I do have a pretty good memory, so something tells me I’m remembering correctly.

I’ve read the OP several times now and I don’t see anywhere where he says the “company” is a shipper. For some reason, you seem to assume that it’s a shipper, but it sounds to me like it’s a trucking company that he’d be leasing onto, and probably a smaller one, as the big ones won’t ever consider anything that is outside of their norm. I agree with you that he has a good start by understanding that fleece/purchase situations with carriers are to be avoided. After lurking on CAD for three years, if he didn’t have that figured out, he’d have to be blind or brain-dead. Part of my response was to try to explain to Joe why he will probably NOT find any takers on his offer. Then again, there are lots of good drivers who bought trucks only to find out that they are bad businessmen, so he might find one of those willing to do the deal with him. As the guy selling the truck, I’d have to trust that the “company” Joe has found will honor their commitment to pay me. I don’t trust ANY company out there. I’ve been screwed over, lied to and cheated by big ones and little ones. This is why, as a carrier, I like brokers over shipper direct freight. Brokers have bonds I can go after to get my receivables satisfied. A shipper I would have to sue. In business, folks screw each other on a regular basis because they know that if the amount is less than thirty thousand dollars, the expense of the legal action will take all the money they are owed, and those kinds of attorneys want paid $10k up front just to initiate the litigation. Oh, and you usually can’t recover attorney’s fees and court costs in that type of lawsuit.

Hobo, you’re way smarter than that! If you are making payments in any way on any kind of property, you are buying on credit. The only situation where that doesn’t apply is if you are RENTING the truck. Clearly Joe isn’t looking to rent the truck. Lenders DO loan money to first time O/Os. The interest rates will be much higher, because the failure rate of the O/O will be much higher. With these types of loans, they still want you to have at least two years driving experience and prefer five or more. Then, you can expect to put ten percent down and pay 12% to 15% interest. This is why so many folks are willing to do a fleece / purchase with a CR England or a Swift. They don’t want to pay their dues but they are willing to pay nearly twice for the truck so they can have it now, as mgfg has already pointed out.

I never stated that I thought he had no CDL driving experience. I think it is safe to say that he has never owned and run a truck before. If he had, then he obviously failed with it because he has to seek out alternative avenues to purchase this one. I’m very disappointed in you Hobo. You know, albeit not first-hand yet, that there is a huge difference between being a company driver and being an O/O. You would be a “tin-horn” just like Joe if you ever got your own truck. I have little doubt that you would do okay though, as you’ve demonstrated over the years that although you are politically misguided, you certainly are no dummy. In fact, I think I remember you stating or at least inferring somewhere that you have been a business owner in the past. If that is true, then you have a huge head start that most other newbie O/O don’t have when they buy their first truck. I’m going to guess that Joe has not been a business owner in the past. Since he doesn’t have any special advantage that will help him succeed, he would be wise to create an advantage for himself by cash-flowing his new adventure.

The fact that you think doing a business deal with cash is “risky” baffles me. I’m pretty much speechless at that statement.http://i1082.photobucket.com/albums/...st-it006-1.gif

Sounds pretty much like he’d be a company driver except without any of the benefits that a big company can offer.

Musicman said:

Okay, just a misunderstanding. You sounded defensive. I didn't MEAN to sound like I was chastising anyone... but, you know how most of these threads go. Something about McDonald's and such. lol. I just wanted Joe to get the benefit of you guys' vast knowledge... cuz, I was wondering about something like that myself at times.

That's the way I've been seeing it too. Hence my "austerity" plan to pay off my credit card debt entirely by next month. This will be MY "independence day" come July 4th! For the first time in my life I will be debt free and have a net worth! I am WAY out of my "comfort zone." lol.

My memory's not so good anymore... but, I don't recall ever saying that. Probably called you CRAZY for something else! lol.

I DO have it good, and I do like being OFF when I'm OFF. I won't give that up easily to be an O/O if I ever make the jump. But, as you may know... I don't deal well with authority figures - especially if they are idiots. I've had neat little "niche" trucking jobs so far, and I'm afraid to make the jump to another carrier to go solo. Malakai has told me enough horror stories to make me stay where I am.

But, I see trucking as my last career. I will need to retire from this, and I want to be in the best possible shape when I do (financially and satisfaction wise.) I already see that I will probably have to drive until I'm 70 to be able to afford retirement. I'm 55 now and I would like to spend those last 10 years taking loads that I WANT to take, and making as much money as I can. I THINK I could be making about $20k/yr more if I were an O/O. In addition, I would like to HAVE my own truck when I retire, so that I could take a few loads now and then to bolster my retirement income and keep myself busy.

When I turn 60, I will have about 12 years experience as a driver, and I will have a better idea (hopefully) about whether the economy will support my venture. If so, I'd like to buy a power unit first and lease on to someone (like Landstar?) Maybe, buy a lowboy and a reefer as time goes by, so I can take whichever type of load comes up and pays the best.

When I retire at 70 (or maybe a bit earlier,) I will still have the truck and trailers and can work when I want to and hopefully without affecting my tax bracket or SSI benefits.

You are probably right. I think I read his post with a preconceived assumption of the type of deal he had and was looking for. But, either way... he says he has a "company" that will make sure the "owner" gets his truck payment (and possibly maintenence funds) BEFORE he gets his pay. Your info on the credibility of the two options has been well noted.

I saw his proposal as more of a "rent to own" type of thing. On credit, sure... but not BANK credit. If I didn't have the down payment OR the maintenance account saved up, I'd be willing to let YOU have your 5% (or more) cut of the load (or interest on the loan,) as long as I got full credit for the truck payment. I would let YOU divert whatever percentage is normal to my maintenance account. IF there is anything left that somehow "exceeds" normal driver wages, I'd be making more than I am now... AND, be paying off a truck for myself.

I get it now. Thanks for the clarification. I misread your sentence. YOU put the emphasis on the credit RATE depending on O/O experience. I just saw the part about lenders NOT lending to inexperienced O/O's.

I apologize for sounding so dumb yesterday. I had accidentally left the T.V. on the Fox channel after watching the Memorial Day festivities. LOL!

You said: Again... the misunderstanding must have been MINE.

I'll let that "political slam" slide by... as I would not like to see this thread moved to the Political forum. Ha ha...

Yes, I owned a business for about 10 years. It failed MOSTLY because I was undercapitalized... so, I know the value of having a maintenance account! I also know how hard it is to "cash flow" new equipment, personnel, etc. [as I understand the term.]

I also researched my business for quite some time before taking the plunge. There is no better "course" for this if one wants to be an O/O than to spend HOURS on this forum. I have not kept up with my studies of late... but, you can be sure that when I get close to making the jump, YOU guys will get tired of answering my questions! [I can see some of you heading for the EXITS already! lol.]

Again... excuse my ignorance. I just don't/didn't understand what you mean by "cash flowing" the purchase of a truck. Please explain this further for me.

Not if he is "BUYING" the truck on time [out of the load receipts] from the owner. At least that is the way I read his first post.