straight truck leasing
- Thread starter Bama1
- Start date
If there was an easy lease option you probably couldn't afford to expedite with it. I can only imagine what the payments would be with an expectation of 100,000+ miles a year
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when I was with Robert Express, Fedexcc , Ceva , I lease all my units that I drove. 1st unit was 1800 UD, lease though Bush leasing, FL60 lease thought Freightliner. Western Star though Ford leasing, Sprinters though MB. Don't due long term lease though Ryder or Enterprise leasing, as there per mile and other charges are high. though dealer are not as high
Expediting is a very expensive and exclusive use market. Simply put, big money to get in, and very limited options to run the trucks. From a business perspective, and I am talking purely financial lenders, the risk is much to big. In the Class 8 tractor market, if a driver defaults, or company goes under, it is very simple to re-market the equipment, and sell to another owner/operator or company and recoup any losses. When we are talking about straight truck expediting, you only have a handful of companies overall which use this specialized equipment and therefore an increased risk of not being able to recoup any losses. Also, a lease means that after the term is fulfilled, the lender now must take back possession of equipment that is very hard to resell, and has a high resale value, but slow to sell market.
You will notice that its next to impossible to get your first expedite truck, but once you have one, you can purchase as many as you would like if you make your payments on time. In addition, many people " TRY" expediting to see if the lifestyle is for them or not. This lends to people with even good credit getting all excited and purchasing a truck, only to default six months later as they find out it was not what they were promised, and the financing company is stuck with something hard to get rid of.
Many people end up purchasing a standard sleeper Cascadia with a dry box because its what they can afford and/or get financing for, and then realize that the revenue is not anywhere need what the full White Glove TVAL refrigerated units make. Of course, there is about an additional $60,000 to $100,000 dollars between the trucks, but that is what it takes to make the revenue people often cite when trying to entice people to live the lifestyle and make big money in expediting. Plus, living in a standard Cascadia sleeper is not the same as a 100" Bolt or AA sleeper. Its often a better scenario to drive for a fleet owner first, and make sure you like the lifestyle, can make money, understand your costs, and then look to purchase or lease the truck you need.
I hope this helps clear up a bit why there is limited options other than outright purchasing of equipment. If you have any other question that I might be able to help with, feel free to ask.
You will notice that its next to impossible to get your first expedite truck, but once you have one, you can purchase as many as you would like if you make your payments on time. In addition, many people " TRY" expediting to see if the lifestyle is for them or not. This lends to people with even good credit getting all excited and purchasing a truck, only to default six months later as they find out it was not what they were promised, and the financing company is stuck with something hard to get rid of.
Many people end up purchasing a standard sleeper Cascadia with a dry box because its what they can afford and/or get financing for, and then realize that the revenue is not anywhere need what the full White Glove TVAL refrigerated units make. Of course, there is about an additional $60,000 to $100,000 dollars between the trucks, but that is what it takes to make the revenue people often cite when trying to entice people to live the lifestyle and make big money in expediting. Plus, living in a standard Cascadia sleeper is not the same as a 100" Bolt or AA sleeper. Its often a better scenario to drive for a fleet owner first, and make sure you like the lifestyle, can make money, understand your costs, and then look to purchase or lease the truck you need.
I hope this helps clear up a bit why there is limited options other than outright purchasing of equipment. If you have any other question that I might be able to help with, feel free to ask.
