hmm guess no professional trucker has ever asked a question of this forum... I was just curious about which way is better, buying a truck outright or going thru a lease purchase
I personally would love to answer this one for you, but alas, I have no idea. But by posting this maybe I can bump you back up to the top so someone else can chime in.
Buying a truck (assuming sleeper for otr) is not as easy as it once was.
Leasing is an option but also not as easy as once was. Leasing also has its downfalls as some companies will not accept lease trucks to haul their freight unless you leased truck through them.
A very good friend of mine went through this process of buying a new truck about a year and a half ago. His credit scores are around 770. He was putting down 20% and still wasnt enough for approval. I am not real sure what the issues were for being denied as I did not understand the trucking industry. I did loan him under contractual terms 35k to make his down payment reach 50% and he was approved. He presently is doing very well for himself even with the economy slump. He has paid me back in full with-in 10 months, way earlier then he had to. He works his tail off every week and spends numerous weeks on the road before coming home.
The only suggestion I can offer to start off is what he was going to do if 50% down payment was not enough to be approved. Find a decent buy here pay here lot that sells sleeper trucks and start from there. If I remember correctly they do have a few requirements to purchase also but much easier for approval. Or you can buy a good used truck from someone selling there truck if you have the funds available.
Buying the truck out right would eliminate any payments. Leasing the truck would be having payments until lease end and not owning anything. There are a few lease options that give you option to buy for dollar when lease is ended but monthly payments are much higher. Buying the truck has its tax right offs but limited to depreciation. Leasing a truck gives you tax right offs on what you pay on the lease. Buying the truck gives you unlimited miles. Leasing the truck has mileage limits unless pay additional for unlimited miles. Buying the truck has maintenance and repairs but some cosmetic repairs you would not have to do such as a torn seat as an examle. Leasing a truck you will be responsible for all repairs no matter how minor and all maintenance done on schedule.
This is not all inclusive for the pros and cons, just an idea of the differences. Things may have changed some since then maybe for the better and possibly for the worse.
Being a truck driver is hard work that many will never understand. I wish you the best and good luck with your decision process.
Great stuff from JM-AM.
anyone here in the forums a trucker that has purcheased a truck from a dealer?
What can you tell us about the industry? I understand that truck drivers can make very good money especially if they can purchase their own truck. Can you fill us in on any of that?
yes there is, there are quite a few independents out there. However since the 08 financial crash, i would not want to be one of them as the industry is so fickle and getting so regulated that it is just easier in the long run to be leased on to a company.
Very informative... And yes I can see whereby you would need at least fifty percent down just to keep the payments down. Especially in cases of sitting for a week without a paycheck. I do know that trucking is not what it used to be especially the pay. There are so many rules and regulations out there its amazing any of the truckers make it out there. With all the cities and towns to go after a semi for any little thing to fill their coffers.