Question:
I'd like to for you all to explain, if you would why, we as newbies should stay away from Leasing. I've read several of you Senior Members advise staying away from Leasing. Could you give the specifics of why you think it's not worth the risk; also why the Carriers advertise like it's really lucrative? Thanks for your input."if you don't stand for something, you'll fall for anything"

Answer:
why not a lease well frist i have never leased or owned a truck but look at what a company is tring to lease you a 99 truck with 700,000 miles on it and serviced every 40,000 the reason they are leasing it to you is because it is costing them to much money i was a truck mechanic for to very large companys that did that and people when broke every day because the truck took all the money now you take a company driver making 35cpm does not have to worry about fuel brakedowns or a o/o that when to a dealer and got what they wanted and they are not hooked to a company they do not like they can leave and find somthing else. now if you have not been in truck driving for to years or more STAY AS A COMPANY DRIVER learn what you can there then in to years you will under stand trucking and the things most people do not see

Answer:
Lucrative for the company only.
They will lease/purchase a used truck for more money than a brand new one. They pass on all the expenses (fuel, tires, repairs, taxes, licensing, permits, insurance, etc.) to you while paying you the princely sum of maybe .85 per mile.
They control the miles you run. So after bleeding you dry, they repo the truck and find another sucker.
There may be some good lease/purchase programs offered by the carriers out there but I have not heard of any.
Avoid them.Sometimes you have to dig through a lot horsesh#t to find the pony.

Answer:
why, we as newbies should stay away from Leasing.
============================
It's a rip off
even the ones that give you a new truck,the payments are so high,you could just about buy 2 trucks from a truck dealer for the same amount.
Do the math
say it's $500.00 per week=$26,000.00 per year
5 years $130,000.00 for a $90,000.00 truck and they want you to than pay a buyout price,you already overpaid for the truck and it still ain't yours,get real.
Answer:
Would you go and work at McDonalds and lease the deep fryer , if it is so LUCRATIVE then why are the trucking companies not running the trucks themselves?

Answer:
That's why I'm asking, I honestly don't know. I'm gullible and as green as grass; that's why I'm asking the folks with the experience. No I wouldn't lease the deep-fryer; then again, McD's isn't advertising the leasing of a deep fryer. Does anybody make money leasing; does the company charge the lease holder for maintenance also? If there is anybody out there or anyone knows of someone making money leasing, how are they doing it? I’m just baffled why carriers would try to just rip people off that work for them. Has the industry gotten that nasty?"if you don't stand for something, you'll fall for anything"

Answer:
Yes, the industry has gotten, and is, that nasty. Not all of it but certainly some segments of it.

McDonald's probably hasn't found anybody stupid enough to hang chicken lights on a deep fryer yet. but I know a few candidates from the 'Happy Dwellers Society" on this board.
Seriously, though, there are two primary problems with leasing a truck from the carrier who also provides you with freight. The first is that it relieves you of all leverage in dealing with dispatch. You either take what dispatch gives you or you can sit in BF, ID until you run out of money. They can't do that to a company truck because the company loses money if the truck doesn't roll.
The second is the likelihood of financial irresponsibility. The vast majority of drivers have no clue (NO CLUE) as to the cost of operating a truck. By the time that they have paid the leasing carrier for insurance, maintenance (necessary or not), escrow accounts (often lost), QualComm rental, etc., etc.., the lessee (driver) is so lost that he has forgotten that he also has to pay FICA (social security withholding - around 16% of pre-tax net), FIT and state income taxes.
There's an almost endless list of benefits to the trucking company in leasing to idiots, excuse me, drivers, that the only thing that's surprising is that more companies aren't involved.
If you're interested in a good laugh, call Prime and have them send you a copy of their lease agreement. It's good for a chuckle a minute. BOL

Answer:
There is another reason that they want to lease to you. By the time the truck is leased to you, they still owe truck payments on the vehicle but all the depreciation and tax writeoffs are over. So, in leasing the vehicle to you, you assume all the operating costs, the spread between what they charge the shipper and what they pay you is pure profit, (less administrative costs), and they still get cash flow from your lease payments to cover the truck payments.
Win, Win, Win situation for them. All risk for you.

Answer:
Leasing is a good alternative to owning or financing thru a bank. What most of the drivers here are saying is "Don;t lease thru the Company that is providing your freight". Go to GMAC or PACCAR leasing. That way you will be truly independent of the company, and free to move on whenever. Also Schneider Financial has some pretty fair deals to owner ops and you can lease whereever you like.
If you are green as grass and gullible, you definitely want to stay as a co. driver for at least 4-5 yrs, to gain experience first.
I ran with a Prime driver the other day thru KY. He told me he was making $650/week payments on a 2001 Freightliner condo. Full of chickenlights.
$2600/mo. payments on a used tractor????
I DON'T THINK SO!!!!!
You also can get some decent terms if and when you decide to lease. Also you can write off ALL of the money in the lease vs the percentage on a loan.
BUT.....Get the experience of driving in first. Hope I helped. Regards/Razz Just remember:If the world did'nt suck, you'd fall off!
The more I see and read about Republicans and Democrats, the more I wish we had an Independent Party.
IMPEACH BUSH!!!!!!!!!!

Answer:
John C. & Razz, pretty much summed it up.(not much for me to add)

Yes....If you do NOT Research properly & if you do Not have an atty go over the contract with you & if you just Rush in to things & if you actually Believe everything the carrier tells you.
What benefit would a carrier get by HELPING drvrs purchase their own trks?
NONE...that's Why they ONLY Help Themselves.(the carriers)

Answer:
It is good for the company. It could be good for you If the truck payment is fair and you are making less then 30 cents a mile now and will not make over 32 cents a mile in the next 3 years.
I would take lease deductions any day before depriciation.202 N Main Street
Summerfield Il 62289
TRUCK PARKING AVAILABLE!

Answer:

Beeman
Well it's a year later and I'm still driving for ODFL.
Pay is now up to .44 per mi. and at this time next year with COL increase should be close to .48 per mi.
http://roundtable.truck.net/viewtopic.php?t=17929
add in the facts that Old Dominion pays half the social security tax that adds another .03cpm to the package when you compare it to owning/leasing and he gets benifits and you would need to find a company to lease you a truck for $1.00 a year at the rates they pay for hauling freight.
Answer:
Every time I talk to a Old D driver they are very happy.
I finally got me a truck. I figure I am about out of this game any way/ With the wife driving we figure why not try it before we are done. Hope in 2 years to get out and sit in front of the screen.
I would love to lease the deep fryer at Mcd's The fries are there most profitable thing they sell..LOL
I do agree. Don't lease from the hand that feeds you. Lease from a finacial institution. Hey, I will have a truck for sell in two years. I will lease mine to you!202 N Main Street
Summerfield Il 62289
TRUCK PARKING AVAILABLE!