Straight lease NOT lease to own?

mick123 · #1 (**permalink**) 08-06-2009, 10:20 PM

Anybody have any thoughts on just leasing by the week as opposed to leasing to buy/own?

The deal works like this: For $XXX, you least the vehicle. The company insures the vehicle and handles maintenance.

What you do with it is purely your business. They don't take a cut. You pay for the a one week lease and fuel costs.

You're not an employee in any way. There are no 1042s or 1099s to fill out. They report nothing to the IRS. The IRS never sees your name.
I was told, "We have nothing to do with you paying taxes. We don't know anything about your taxes, we don't ask and we don't want to know."

It's up to you to file any profits or losses as a self-employed person.

I've been looking at this for a while and maybe forming a Sub-Chapter S corporation to help with the tax thing.

Anybody else doing or done this?

Mick

crash935 · #2 (**permalink**) 08-07-2009, 11:18 AM

Are you talking about going to Ryder, National lease or some place like that to get your truck and leasing it/renting it from them?

brigpilgrim · #3 (**permalink**) 08-07-2009, 02:36 PM

In a straight lease, they get the truck back at the end of the term and get to resell it. So they subtract that value from the total of the payments giving you a lower cost.

Any cost that they say they take care of, they figure that cost into the payments, they are not going to lose money on the deal. When they cover the cost, they control what you can have done.

In Lease to own, they figure in the total cost of the vehicle since they don't get it at the end. Not a good deal in my opinion. You could do the same thing with simple bank financing.

Cerberus_Kelpie · #4 (**permalink**) 08-08-2009, 08:19 AM

BUEL INC. in South Carolina appears to have a similar deal.
A driver gets to pay for the fuel however one does not lease the truck or in any way own such. Sort of a simple Owner Op. plan without the added hassles for the drivers interested in such.
Just another way for trucking companies to TAKE money from drivers , so in essence how much is one willing to spend to drive!?!
Does the company provide Freight or does one have to secure ones' own?

Leasing a 4 wheeler is one thing, where leasing to never own a truck is to me a goofy idea.
Many trucking companies have been doing this for many years and have bilked MANY people for the same P.O.S.
I wonder if the Rent A Wreck company also do classes 6, 7 and 8 Trucks!?!

Either BUY a truck directly from a DEALER, RENT IT, or be a company driver unless one has A LOT of disposable money for a lease plan.

~~One can make a small fortune in trucking if 1st one starts with a LARGE one!!~~

Skidmark · #5 (**permalink**) 08-08-2009, 08:36 AM

Why would anyone do this? All your doing is helping the trucking company flip the bill for it's operating cost! At the end you helped someone pay for the rig, the fuel, and the driver,with nothing to show for it. They pay for insurance and tags? Anyone would do that,they have to, to put the truck on the road and why wouldn't they if they have a sucker willing to agree to such an agreement! If you can't afford to buy a Truck using traditional financing with lots of reserve capitol, please, stay a company driver to you can. Little good comes from these kind of deals.

Cerberus_Kelpie · #6 (**permalink**) 08-08-2009, 08:43 AM

Quote:

Originally Posted by mick123

Anybody have any thoughts on just leasing by the week as opposed to leasing to buy/own?

The deal works like this: For $XXX, you least the vehicle. The company insures the vehicle and handles maintenance.

Mick

The Lease cost as well helps pay for maintenance, or so it may seem.
One will discover quickly enough when one needs a Tire, Wheel or 2 AND when one needs Drive train work.
One will see what the maintenance ACTUALLY COVERS when something of above occurs.