I wonder if these big carriers who push their fleece purchase programs would be able to stay in business without the money from the poor suckers who fall for their programs? It would be interesting to know how much money they actually make just from the fleece programs. They might actually have to start selling service and raise their haul rates if they ever got out of the fleece business.

 

People who get themselves into a lease purchase did not have the resources of this forum or chose to ignore them. The experiance on this board is remarkable and I for one am well pleased to have this resouce. Thanks everyone!

I am however, thinking of getting my truck from the factory. There has to be a way to be successfull in purchasing a new truck. To my knowledge there isn't a single supporter on this board that will support this . I will start thread on this someday and I hope to find GMAN there :wink:

 

Hawk, you can purchase a new truck from the factory provided you have the down payment from 10-30%, good credit and at least 2 years of experience. Starting out with a new truck and the accompanying payments can be done, but you will need to live in the truck. Your payments can easily run around $2,300+ per month on a new truck. That is a lot of money to pay out every month. It isn't that you can't do it. It is a matter of whether it makes good business sense. A new truck can cost as much as $135,000. Deduct your down payment, add interest rates of from 9-20+%, divide by 60 months and you get an idea of what your payments will run. In addition to your payments, you can add collision insurance costs of from 2 1/2-4% of the stated value and you will get an idea of what it will cost to purchase that new truck.

When you first start out in this business, you have no idea of what it takes to make a profit with a truck. You have no idea of what your income will run. Whether you are paid percentage or mileage, you will make your living based upon your performance. Until you run a truck for a year or two, you don't have a true idea of what you will earn. You may have 3 different owner operators leased to the same carrier. Each one may have different earnings, based upon their personal work habits and ability to manage their business. In addition, you don't know what will happen in the economy. The last 6 or 8 months have been unusually slow. That is something most owner operators did not expect. Those who have been living on the edge will probably not be in business next year. Many have already failed. Those who have kept their costs down and had a low truck payment, or better yet, no payment, will fare much better as long as they manage their businesses wisely.

Can you buy a new truck? Perhaps. Should you? Only you can answer that for sure. I would recommend working your way up to a new truck, if that is what you want. Remember, regardless of what happens in the economy those truck payments will continue. It is much easier to make a $500/month payment than $2,300+.

 

I have done some calculations based upon paying 10, 20 and 30 percent down on a new truck purchased for $135,000 and financed for 60 months. I have used interest rates of 9 and 20%.

10% down ($13,500)

9% = $2,522.14/mo.
20%= $3,219.00/mo

20% down ($27,000)

9% = $2,241.90/mo
20% = $2,861.33/mo

30% down ($40,500)

9% = $1,961.66/mo
20% = $2,503.67/mo

These prices do not include any title or other charges. They also do not include any costs for collision insurance. Insurance will cost from 2 1/2 - 4% of $135,000, if that is what you want insured.

Insurance at 2 1/2% = $281.25/mo = $3,375/yr
3% = $337.50/mo = $4,050/yr
4% = $450.00/mo = $5,400/yr

 

Damn that sounds like an awesome deal......was it a old truck with over a million miles too? :lol:

 

Dang it! I told you guys that I was going to start a thread "some day". I knew you couldn't leave that new truck post alone. Very nicely done and I am impressed at how accurate the information is right off the top of your heads.

However, the piece that I want to do with you does not involve interest rates and such as the truck will be purchased with cash. It has more to do with establishing a secondary market for the sale of the truck and the total cost of ownership.

More later ...

 

Ok back to L/P. what ppl are saying is true, you own your soul to the company store when you lease. My question is, how many L/p's are there that have to support a family? it would seem if you have no bills, i.e. house, car, children to take care of, you could seem to do alright. I mean it would give you a good idea of ownership with out making a big investment. I know a decent truck and trailer is still about $40-50,000. just don't get caught up in the long term Lease. and leasing does give you SOME freedom, just realize, it IS a commetment.