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New Express 1 Truck Lease Program

Jayman

Jayman

Expert Expediter
Has anybody taken up Express 1 on their new truck lease program? I talked to them about it at the expo. From my limited understanding...it doesnt sound too bad when you compare the cost of actually owning the truck. (I know this goes against current practices) I looked at my estimates for the fixed cost per month of truck payment, plates, and insurance. I figured for a nice used truck that I could use for about 4 yrs it would run me about $1400/month. Their new lease for a new M2 with Cat C-9 335hp, automatic trans, 22' box, and small 48" sleeper would be around $1650/month. (this includes insurance and plates) If possible, I would want to upgrade to a 72" sleeper. One thing I also considered is I can write more off my taxes for a lease payment since I dont own the truck. Otherwise all I can do is write of depreciation.

All feedback is appreciated. Especially if I am mistaken about some facts. :D
 
LDB

LDB

Veteran Expediter
Retired Expediter
The 3 rules of leasing are:

Do not lease from the company who is loading you.
Do not lease from the company who is loading you.
Do not lease from the company who is loading you.

That said, I believe Express-1 is one of the most honest and straightforward companies in business. I don't believe they are setting this up to defraud lessees the way some companies do. I consider them a trustworthy organization. I do not personally think leasing is as good as purchasing but that's a matter of opinion. If you ask 3 CPA's you'll get 4 answers.

I know there will be a few responses pointing out how crazy I am and how foolish I am but a 48" sleeper is insane and 72" is marginal in my opinion unless you live right on the I75 corridor or somewhere else where you can stop by home pretty often. If you are going to be out for 3-5 weeks at a time I think a 48" would drive you insane. My .02 that isn't agreed with but still my .02 on it.

Leo Bricker, 73's K5LDB, OOIDA 677319
Owner, Panther trucks 5507, 5508, 5509
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.
 
rode2rouen

rode2rouen

Expert Expediter
I KNEW there was something Leo and I agreed on: See Leo's 3 rules!!!

As to the sleeper size, a 48" is cool IF you are only going to be in it for a few nights a week. My truck has a 51" sleeper and for the runs I do (out on Monday and usually home on Thursday) it is just right. If I was expediting, and out for 3 to 4 weeks at a crack, I would want a 72".

My personal $.02 is buy a truck. What would be the results if you leased a rig from Express1 and after a year you decided that Panther or FedEx or Landstar would be a better outfit to run for. Are you tied to the lease (and Express1) for the duration? Can you continue the truck lease with Express1 if you move to another Co.?

If you own your own truck, you can change Cos. whenever the urge strikes (not a cool thing, but try to see my point).


Rex
 
C

cornerstone

Expert Expediter
Why do you think leasing a vehicle from the company that loads you is a bad idea? Maybe I am naive but it would seem to me that they would want to keep those trucks loaded because they have a financial interest in them. I have heard that many companies set it up so that a driver never finishes his/her lease. At the beginning of the lease the driver gets a lot of loads and as the lease goes on the loads decrease. Not sure if this is true but it doesn't seem ethical if it is.

I have never heard of anything bad about Express-1 and I was told that you can get out of the lease with a 30 day notice and walk-away. Doesn't sound bad for the guy that doesn't have the ability to purchase a truck.
 
LDB

LDB

Veteran Expediter
Retired Expediter
>Why do you think leasing a vehicle from the company that
>loads you is a bad idea? Maybe I am naive but it would seem
>to me that they would want to keep those trucks loaded
>because they have a financial interest in them. I have
>heard that many companies set it up so that a driver never
>finishes his/her lease. At the beginning of the lease the
>driver gets a lot of loads and as the lease goes on the
>loads decrease. Not sure if this is true but it doesn't
>seem ethical if it is.
>

You answered your own question with the correct answer. There are some companies that have leased the same power unit several times and make 2 or 3 times the cost of the power unit in lease payments from failed lease operators. It is totally unethical but apparently not illegal so it goes on.

Leo Bricker, 73's K5LDB, OOIDA 677319
Owner, Panther trucks 5507, 5508, 5509
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.
 
C

cornerstone

Expert Expediter
I decided to do the Express-1 Lease Purchase. I know many on this site are not fans of a lease purchase program but having all of the facts in front of me, it made sense.

I am paying $398 a week for the lease. They also take out $.08/mile which $.06 goes into a maintenance account and $.02 goes into my escrow account. My only upfront cost was $800 for a deposit.

The lease is through Schilli National Lease out of South Bend, IN. When the truck needs service they prefer you bring it to one of the Schilli locations for the PM. If you are not in the area they will send you somewhere. They also have a breakdown number which unfortunately I have already had to call. The good news is that they take care of all the arrangements. I lost power on a backroad in Kentucky and I called the breakdown number and they had a tow truck come and get me. I thought it was water in the fuel filter but it ended up being a bad #3 fuel injector. The truck only has 3300 miles on it so hopefully this is just a defective injector.

The truck is nice. It is a Freightliner M2-106. It has a Cat C9(335hp) with an allison transmission. It does have a 48" sleeper which I agree is on the small side. My biggest complaint is that I keep standing up and forgetting that I don't have much headroom. It also has electric dolly legs which so far I can't say are a benefit. They take about 5 minutes to go down. I wonder if it has a 2nd gear so that it will go faster. I've looked everywhere on it and I can't find anything.

Everyone at Express-1 has been very professional and they have kept me very busy. I think they have a very good program and so far so good.

Cornerstone
 
R

RichM

Veteran Expediter
Charter Member
I got along with a 60 inch sleeper for many years. Weekends means Comfort Inns or Fairfields. I agree it is better to own your own truck as the company that you are leased too has less control over you,so it is in their interest to keep you running and contented.

Nothing against Express 1,I have heard nothing but good about them but if you want to be truly independent figure out a way to purchase your own vehicle.
 
B

Broompilot

Veteran Expediter
Good Luck Cornerstone, when you become dissatsfied or need to move on personally or professionally you are STUCK, let me spell that out for you, you have just LIMITED YOUR OPTIONS TO NONE, ZERO, ZIP, so good luck and I mean that without trying to be a smart azz.

Any wise business owner never leaves his back against a wall, never. Things happen, a company might be sold but you are obligated to the very end of this agreement. Second big mistake one is making is so very little down, sure you entered this business cheap and your financial earnings will most likely be matched by ones decision on financial committment. Think I am nuts thats fine, please post your success in two and four years from now. Just trying to give you some advice to think about.

The comment on well they will keep you busy, your nothing but a # its your credit not theres, as Leo said they are an excellent company but over time things change, and they most likely will just like the price of Diesel it will change and so will you and your Carrier.
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
Wow....I am behind the times. I didn't know they were even selling 48" sleepers anymore?
As to the rest of it....."Businessman first, driver, second"
As mentioned, in alot of instances, the finance company's profit is in reselling a vehicle numerous times over, verses whether it ever has a load on it.
Bear in mind I know nothing about Express1's lease purchase deal.
Good luck, and let us know how it goes. Broom is correct, when you are in your third year or so, that is when thinks might look different. Hopefully it all works out for you.










Davekc
owner
22 years
PantherII
EO moderator
 
B

Broompilot

Veteran Expediter
A good way to look at this, take 33 $50.00 bills and lay them on a table. This is what goes to the bank every month FIRST, its not yours thats alot of $ to make for never owning anything. How many months? 48=79,200 54=89,100.

This business does take money to make it, honestly I know of no one doing great other than those who put a ton down and keep there expenses in check. Look at the used trucks alot of newer repoes, theres a good reason for that to much payment to little of income.
 
C

cornerstone

Expert Expediter
I appreciate all of the advice. One of the things mentioned was having no options if things go bad. One of the reasons I went with this lease purchase is because I have an out. I can turn the truck back in with a 30 day notice and no penalties. As long as I give the notice I will get my $800 back and also $.02/mile that went into that escrow account. I do lose the $.06/mile that went into the maintenance account.

I understand the concern about doing a lease purchase but I really don't see how I can lose. If I purchased my own truck I would probably make a little more money but with this program I can walk away at any point and have no credit risk. I wasn't ready to purchase my own truck yet. From reading on this forum, the one common denominator for success is to have as much money in savings as possible. I have the money for a substantial deposit but that leaves me short on the cash reserve.

I agree that only time will tell if this is a great deal. It will be interesting to see my views at 2 years and 4 years.

Cornerstone
 
B

Broompilot

Veteran Expediter
Are you serious? One can walk out of a Lease with a 30 day notice. Let me explaine something here, this vehicle your gona lease is gona depriciate approx. 10K as soon as you start it. So a bank or company is gona be willing to take that chance on your business ethics, knowlege, and honesty?

Whos gona make up the difference? The bank. Cause they gave you a chance? You better read the fine print I am telling ya there is no way that they anyone is gona let you out scott free cause you just changed your mind. The vehicle is not RESELLABLE especially a M-2 with a 48 sleeper.

READ THAT CONTRACT WITH A LAWYER If its to good to believe (and this is) THAN...................
 
B

Broompilot

Veteran Expediter
Cornerstone, Jayman, I am not the only voice on Expierence here, There are others here with much more expierence than my two years. I do however have a background of more than 20 years of private business ownership.

I have until just the last two weeks never seen either one of you post here but it seems what I am reading your both ready (already) ready to make the plunge.

I would encourage you both to take much more time in studying this site and visiting or calling other O/O that are here and LEARN. The way you post and want to get into this from what I have seen is gona almost guarantee failure. Heck there is another poster who was with the company you are refering to, but he had an option to go elsewhere. That is what seperates success from failure is OPTIONS you tie your hands and live by the sword and not your sword. I have said enough I wish you both alot of luck but your traveling a road I choose not to nor would I ever no matter what the savings are hands tied are just that tied hands.
 
C

cornerstone

Expert Expediter
Broompilot,

I respect your opinion and I know you are looking out for the best interest of your fellow expeditors but I don't think this is a bad deal. I have read the fine print and it clearly states you can return the truck with a 30 day notice. This lease is done through Schilli Leasing in South Bend, IN.

I have just started posting but I have been in the industry since 2001 as a driver for a fleet owner. I definitely don't have all the answers but I did my homework and I believe this is a good deal. I could be wrong but time will tell.

Cornerstone
 
F

FAMILYEXPDT

Seasoned Expediter
Not unheard......Covenant Transport has the best lease purchaseprogram out there for tractors.....theirs is set up the same way, can turn truck in no penalties etc with 30 days notice. We exercised that option ourselves so know it is true......turned in 2004 after 1 years leased 2005 same day, placed deposit and took truck to panther.....was a sweet deal..Wish ya luck



-charlotte
 
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