Lease purchase plans

06081956 · Jul 11, 2010

I HAVE SEEN A LOT OF LEASE PURCHASE PLANS, HAS ANY ONE SEEN OR HEARD OF THE ONE OFFERED BY US XPRESS. HOW REALLY DO THESE WORK, ARE THEY MAKING MONEY ALSO OFF LEASING THE TRUCK TOO. ANY COMMENTS HELPFUL.

Desperado · Jul 11, 2010

yes their making money but you have to look at what you want I'm down the the last few months of mine and then it will be mine

nightcreacher · Jul 11, 2010

In the business world,most people know what a tax shelter is.Drs and Lawyers,like to have hobbies and call them a business,for the sole purpose of lowering there taxable income.In the trucking game,most owner operators use their trucks for that tax shelter.When you do a lease purchase with a trucking company,as long as you realize ,this is just a way to lower your taxable income,and don't worry about owning the truck you are driving,if done right,your take home pay would be more than if you were just driving the company truck.Also,,If you drive this truck for 5 years,by the time it would be paid off,it will be worn out.Be carefull of lease purchases,especially if you want to actually own the equipment

chefdennis · Jul 11, 2010

If you can, find I think it is the June or July issue of the OOIDA Landline magazine...they just did a very good article on Purchase leases. They pointed out how most of these leases are set up for the driver to fail and have to give the truck back...so it can be leased again.....

As was also pointed out, if you can make it through the lease, by the time the lease purchase is over, the truck is wore out...

be real careful.....

Dakota · Jul 11, 2010

The lease I have at Penske, at the end of the term I do not own the truck, I just re-lease a new unit. Why would I want to own a worn out truck....

nightcreacher · Jul 11, 2010

Dakota said:
The lease I have at Penske, at the end of the term I do not own the truck, I just re-lease a new unit. Why would I want to own a worn out truck....

that makes your truck the perfect tax shelter,your lease is the perfect way to save on your taxes

Dakota · Jul 11, 2010

nightcreacher said:
that makes your truck the perfect tax shelter,your lease is the perfect way to save on your taxes

Exactly, the whole entire payment is a tax deduction. If I happen to have a slow month, I'm not really losing much. Plus my lease is a full service lease so all maintenance is covered including tires. So I don't have to set aside money for breakdowns

moose · Jul 11, 2010

Lease Percusses came to place so the carrier can move freight for free .

xiggi · Jul 11, 2010

There is a big difference between leasing from a trucking company and driving for that company and leasing from someone like Penske. From things I have read there are many pitfalls in the trucking industry of leasing from someone and driving for them. They take their trucks going out of warranty and lease them to drivers. Many time at super high rates that are almost unsustainable with the amount of miles they get you. Was it ooida that only found one or two company lease deals out of all they researched that was fair?

06081956 · Jul 12, 2010

Thanks for all your comments very good information. It is as i was thinking i was intending to own the truck but point made it would be worn out by time i owned it. Why would i do that.

greg334 · Jul 12, 2010

You know people seem to forget that tax write offs are only good when you are producing an income. You carry it over, you need a good tax advisor but before you get to that point, it is a good idea that you have legal and financial advice telling you what is a good and not good thing to do.