Lease Purchase
- Thread starter JohnO
- Start date
Streakn1
Veteran Expediter
If you are considering a lease purchase through a private individual, whatever you do "BE CAREFULL!" Our first truck was purchased this way and ours is a success story. Yet friends of ours have tried the same route with other truck/fleet owners, only to loose or have the truck taken away.Plus they lost tens of thousands of dollars in the process.
Ask the potentual seller for a copy of the Lease/Purchase contract and tell them you wish to have your Attorney look it over. If they are hesitant to provide you a copy, this is a sign of potentually bad things to come. If you get a copy "TAKE" it to an Attorney. This will be the best $200.00=/- you may ever spend.
Terms on most of these arrangements can vary from 10%-20% of the monthly gross revenue of the truck being skimmed right off the top.Then you are still left owing the monthly truck payment,etc. Make sure you can afford it!If the seller is still paying a loan on the truck ask to see the terms of that loan ie: monthly payment amount, interest,etc. This will help you to see if you are getting a fare deal or not. You need to factor in the interest rate the seller [YOU] will be paying on the bank loan plus the fee (10%-20%) the seller is going to charge you to use him/her as you bank. The total of these two amounts will be the interest rate you end up paying.
When done correctly, a Lease/Purchase can be a workable way to alternative truck financing.
Ask the potentual seller for a copy of the Lease/Purchase contract and tell them you wish to have your Attorney look it over. If they are hesitant to provide you a copy, this is a sign of potentually bad things to come. If you get a copy "TAKE" it to an Attorney. This will be the best $200.00=/- you may ever spend.
Terms on most of these arrangements can vary from 10%-20% of the monthly gross revenue of the truck being skimmed right off the top.Then you are still left owing the monthly truck payment,etc. Make sure you can afford it!If the seller is still paying a loan on the truck ask to see the terms of that loan ie: monthly payment amount, interest,etc. This will help you to see if you are getting a fare deal or not. You need to factor in the interest rate the seller [YOU] will be paying on the bank loan plus the fee (10%-20%) the seller is going to charge you to use him/her as you bank. The total of these two amounts will be the interest rate you end up paying.
When done correctly, a Lease/Purchase can be a workable way to alternative truck financing.
arkjarhead
Veteran Expediter
My cousin did a lease with prime,inc. when he was toward the end of his lease they started cutting his miles and then he was at home and they came and reposed the truck. i've talked to c.r. england lease operaters and thier payments are about 600 a week. I think they only get a buck a mile. That doesn't include fuel and maintence either.
Tennesseahawk
Veteran Expediter
Listen to Streakn! Don't let enthusiasm cloud your judgement. Make sure the contract is IRONCLAD before you sign anything. Take it to a lawyer to look over. Try to make payments directly to the lien holder, because once the seller has the money in his hands, anything can go. I have experience in this matter, and it's nothing but bad. Most who get screwed in these situations are suckers... including me. Though I did what I could to limit the potential loss, it turned into a loss nonetheless. The best thing I could've done was stay away from it, build up my credit rating, and get a loan.
One other thing... whether the leasor or the leasee, there should be no 10-20% of the take off the top. Either the guy wants to get out from under a bad situation by leasing it to sell, or he just doesn't want the payment anymore. Either way, he shouldn't profit from his mistake. Both parties are doing each other a favor.
-True independence can only be gained if you're trully independant.
One other thing... whether the leasor or the leasee, there should be no 10-20% of the take off the top. Either the guy wants to get out from under a bad situation by leasing it to sell, or he just doesn't want the payment anymore. Either way, he shouldn't profit from his mistake. Both parties are doing each other a favor.
-True independence can only be gained if you're trully independant.
Tennesseahawk
Veteran Expediter
Whadaya tryin to do, John?
-True independence can only be gained if you're trully independant.
-True independence can only be gained if you're trully independant.
wallytrucker1
Expert Expediter
John I certainly pray all goes well. I personally will miss the tales of your exploits out west here (the pics especially) as you discovered the true BEAUTIES of the BEST side of the country. With that being said, Get your butt back to jersey and stop stealing my gravey loads you carpetbagger...Your bud... :7 :7
:7 :7