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lease/purchase programs
- Thread starter atomic
- Start date
A Lease/Purchase Plan is a good way for someone with less than stellar credit to own their own vehicle.
An owner will offer a truck to a potential buyer/leasor (you), and expect that the leasor is going to take ALL responsibility for the financial considerations of the truck, including a percentage cut back to the owner. The owner would retain title of the vehicle, and be listed as the owner with whatever company the truck is leased to -- this insures that the owner can get the truck payments, and their cut, off the top of the gross, and also allows them to contact the company about the whereabouts of the truck, should they need to get it BACK.
As a potential leasor, you should be very careful with any contract that you sign, taking it to a lawyer to go over with a fine-toothed comb. This will insure that it IS a legal contract, and that you will have an avenue of recourse, should the owner be less than honest.
To my mind, a reasonable agreement would take into consideration the age of the vehicle, and the lease would be for the remaining life of the original loan -- i.e. if the vehicle is a year old, you would only lease it for 4 years, then you would own it.
Bear in mind that whatever percentage you are paying the owner is an offset of what s/he made as a down payment, their expenses to have the contract drawn up, and their time and effort in overseeing the lease. Also, this amount is going to negatively effect the actual gross revenue that the truck is able to produce.
i believe that a 10 - 15% cut back to the owner is a fair, and normal, amount. Some owners will also stipulate that on the second half of the lease, part of this percentage cut back will go into an escrow account, to be paid to the leasor (you) at the end of the term of the loan as an incentive to "go the distance," as it were. Another scenario is an owner that simply wants to get out from under their truck, and would allow you to assume payments, with little or NO percentage cut back to them. There are probably as many lease/purchase PLANS as there are owners out there, so look for a deal that is going to suit YOUR style, and WALLET, best.
The owner will have complete control over the vehicle, even though you, as the leasor, are assuming all financial responsibility, so it would be in YOUR best interests to actually be a driver for the owner, BEFORE signing any contracts to lease/purchase the vehicle. This would allow you to gain some experience with the truck -- is it a hunk of junk, or an absolute jewel -- and with the owner -- are they up front and honest, or a little shady.
Because the owner will also have complete control of the truck's revenue, you will want to make sure that s/he is able to forward your pay in a timely manner -- having to wait an additional several weeks for them to send a check could be a disaster for you, financially.
i hope this helps, and want to wish you the best of luck!
*********
Godspeed to all of you out there on the highways and byways!
An owner will offer a truck to a potential buyer/leasor (you), and expect that the leasor is going to take ALL responsibility for the financial considerations of the truck, including a percentage cut back to the owner. The owner would retain title of the vehicle, and be listed as the owner with whatever company the truck is leased to -- this insures that the owner can get the truck payments, and their cut, off the top of the gross, and also allows them to contact the company about the whereabouts of the truck, should they need to get it BACK.
As a potential leasor, you should be very careful with any contract that you sign, taking it to a lawyer to go over with a fine-toothed comb. This will insure that it IS a legal contract, and that you will have an avenue of recourse, should the owner be less than honest.
To my mind, a reasonable agreement would take into consideration the age of the vehicle, and the lease would be for the remaining life of the original loan -- i.e. if the vehicle is a year old, you would only lease it for 4 years, then you would own it.
Bear in mind that whatever percentage you are paying the owner is an offset of what s/he made as a down payment, their expenses to have the contract drawn up, and their time and effort in overseeing the lease. Also, this amount is going to negatively effect the actual gross revenue that the truck is able to produce.
i believe that a 10 - 15% cut back to the owner is a fair, and normal, amount. Some owners will also stipulate that on the second half of the lease, part of this percentage cut back will go into an escrow account, to be paid to the leasor (you) at the end of the term of the loan as an incentive to "go the distance," as it were. Another scenario is an owner that simply wants to get out from under their truck, and would allow you to assume payments, with little or NO percentage cut back to them. There are probably as many lease/purchase PLANS as there are owners out there, so look for a deal that is going to suit YOUR style, and WALLET, best.
The owner will have complete control over the vehicle, even though you, as the leasor, are assuming all financial responsibility, so it would be in YOUR best interests to actually be a driver for the owner, BEFORE signing any contracts to lease/purchase the vehicle. This would allow you to gain some experience with the truck -- is it a hunk of junk, or an absolute jewel -- and with the owner -- are they up front and honest, or a little shady.
Because the owner will also have complete control of the truck's revenue, you will want to make sure that s/he is able to forward your pay in a timely manner -- having to wait an additional several weeks for them to send a check could be a disaster for you, financially.
i hope this helps, and want to wish you the best of luck!
*********
Godspeed to all of you out there on the highways and byways!
I was thinking about trying to lease my truck. What has stopped me from doing this, is what if the person takes your truck out and ruins it? Then they walk away, leaveing you with a damaged truck,and all the bills to fix it. Also, what if they kill someone with it? Am I also liable as the owner of the truck? Maybe I'm better off trying to just sell it. If I don't sell it soon, it won't matter. The repo man will have it.
hey Doe.mouse what kind of truck do you have im looking to get a truck asap maybe we can work something out im not crazy for the lease thing eather i like to have controll of my money but i need a truck and you dont want yours repoed you can e-mail me at [email protected] thanks atomic
Wendy and Rich have given you some good and technical advice. I would like to add that, in todays extremely competitite market, just make sure you can afford to operate the unit and pay your bills before making such a commitment. What would concern me with a lease/purchase, is the loss of profit to you, the leasee, going back to the lessor. In todays slim profit margins, this might be a big factor.
My advice is, unless your driving team, where you can generate a good and consistant amount of revenue, continue driving for someone else.
When I'm out on the road, I make a point to talk with everyone I can, regarding how their doing. The vast majority of single drivers are making very little for the time they spend away from home, especially with the big three.
Just be carefull.
My advice is, unless your driving team, where you can generate a good and consistant amount of revenue, continue driving for someone else.
When I'm out on the road, I make a point to talk with everyone I can, regarding how their doing. The vast majority of single drivers are making very little for the time they spend away from home, especially with the big three.
Just be carefull.
I'm doing a Lease/Purchase right now and like Wendy said, my husband and I worked for these people for a year. I feel they are the most honest people I have ever met. My contract is written in plain english, no hidden clauses. The truck is a 2001
KW T2000. I'm angry with the Chattanooga KW because they botched up what we ordered, and now the salesmen is lying through his teeth. We are paying 15% of gross. They have 2 other trucks, a 98 and a 97 Freightliner's FL70's they may do a lease/purchase with you, or even drive for a few months to see if you really want that truck or not.
Good Luck. If you want to reach me [email protected]
Iris
KW T2000. I'm angry with the Chattanooga KW because they botched up what we ordered, and now the salesmen is lying through his teeth. We are paying 15% of gross. They have 2 other trucks, a 98 and a 97 Freightliner's FL70's they may do a lease/purchase with you, or even drive for a few months to see if you really want that truck or not.
Good Luck. If you want to reach me [email protected]
Iris