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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!