Lease Purchase Is Leasing from Ryder or Penske a bad idea?

[ironpony]

Lease payments are forever...

Huh?

You plan on leasing from Satan Inc?

 

[Hammer166]

It's easier to come up with that tax money once the truck is paid off because you can lay that money aside.

Lease payments are forever, loans are for a specific period.

The key is not buying or leasing too much truck for your revenue. And staying out of Bosselmans.

Actually, leases can have a fixed term, as well. Ours are 60 months, with a residual value in the contract if one desires to purchase the equipment at the end of the lease. It allows a much lower monthly cost than an outright purchase. There are also terms in the lease that allow buying out the lease after so many months, if one desires to do so. But again, this isn't leasing a generic truck from Penske.

Ryder/Penske trucks have horrible specs in general. Don't expect anything better than mediocre fuel economy. They control the maintenance, so finding out the details of how and where are important, as is what you are responsible for financially.

I had to laugh at this one. Not because it's untrue, but because of how Prime spec'd trucks way back when. They advertised trucks that were not cut back. But since this was before electronic engines, they spec'd them with very short rears to keep the speeds in check. They were still fairly fast for fleet trucks (this was the double nickel days,) but the result of the short gears were trucks that got horrible MPG. /hijack

 

[Electric Chicken]

Actually, leases can have a fixed term, as well. Ours are 60 months, with a residual value in the contract if one desires to purchase the equipment at the end of the lease.

I meant you never own so if you don't buy, you'll always have a lease payment if you want a truck.

If you purchase one, you get to keep it at the end. Then you get to start paying for big repairs instead.

 

[ironpony]

They were still fairly fast for fleet trucks (this was the double nickel days,) but the result of the short gears were trucks that got horrible MPG.

Also depends on how far through the floorboards you try ta push the pedal...

 

[ironpony]

I meant you never own so if you don't buy, you'll always have a lease payment if you want a truck.

If you purchase one, you get to keep it at the end. Then you get to start paying for big repairs instead.

Depends on the business model. Buy a truck, yes the payment goes away, but maintenance costs increase over time.

Recurring short term leasing allows you to write off the lease payments, and the asset remains under warranty.

 

[Electric Chicken]

My personal approach will be to buy old & cheap and set aside cash to either dispose of it or rebuild it.

The lower the purchase price, the shorter the service life you need for it to pay for itself.

Buy cheap enough and you can scrap it in just a couple years without crying, or afford to have everything done over if you like it enough.

Chances are, I'll probably just buy one cheap sleeperless power unit after another since the whole truck costs less than a motor rebuild.