Overcoming the Heartbreak of a Lease Purchase Agreement
For years, the trucking industry has offered the Lease Purchase agreement to Contractors looking to become Owner Operators. As we’ve pointed out in previous Spotlight News articles, Lease Purchases offer a quasi-ownership proposition with high payments for what you are getting and little-to-no way to pay off a truck. These agreements are often fraught with risks for the Leasee as they are most definitely set up to benefit the Leasor.
A much better option is Expediter Services Much Better Alternative (MBA) to truck finance with a rock solid Path to Ownership (PTO) offering true truck ownership. Just ask Philip Wright, a professional contractor who recently underwent a heartbreaking experience when his artificially sweet Lease Purchase turned toxic. Fortunately, he and his wife are now on the road with a new truck that is truly sweet and was a really sweet deal!
SLN: Give us some of your trucking background?
I’ve been a driver since 1997. Since starting my career, I’ve driven semi’s both over-the-road, as well as locally. I enjoy being a trucker and it has great earning potential for anyone who wants to work hard.
I drove for another company before signing on with Panther as my carrier in 2004. Before leaving that company, my wife got her CDL and went out on the road with me, but we soon got discouraged. I saw an Ad online for Panther and we pursued that opportunity and we’re still with them. Panther is a good company and we’ve been successful running with them. We’re getting ready to move into our first brand new house built from the ground up, so life and business is pretty good.
SLN: Tell us about your experience with a Lease Purchase agreement?
In some ways, the Lease Purchase appeared to not be that bad. It’s sort of like when you put artificial sweetner in your coffee. It tastes good but if you use too much you can wind up with some serious health problems in the future. It was my desire to be an Owner Operator and the way the Lease Purchase was structured, it was easy with no down payment. It all started good and we were soon making some money. My wife and I were excited about our future and about our business. But there soon was to be a reckoning.
We already knew that we were spending a lot of money as far as the truck and the Lease Purchase agreement was concerned, but we were doing OK and earning a pretty good income and our lease was going to be up in July of next year anyway. So we figured we would just ride it out until then. But about two months ago we got a real surprise phone call that knocked the wind out of our sails. We were informed that our truck was 285,000 miles over the mileage limit on our contract and instructed to bring our truck back and turn it in. And on top of that, they said we would owe $21,000 to keep driving the truck or we could pay them $46,000 and buy it flat out. To say we were floored by this news would be an understatement!
I was livid! How could a Lease Purchase agreement limit our miles and our ability to make a living like this? They also wanted the truck returned immediately. On top of this, we had just bought a house, so there was a lot at stake for us. We were good earners, but we didn’t have the kind of cash lying around to continue driving the truck or to buy it outright. Our only choice was to get rid of the truck — something I really didn’t want to do. The situation was absolutely heartbreaking. It seemed like we had no control of our future at all.
SLN: How did you manage to rid yourselves of this Lease Purchase heartbreak?
My contact at Panther went over several options with me. I decided to learn more about Expediter Services’ path to ownership opportunity. I soon got contacted by Jeff Tacker, VP of Operations at ES. He asked me that if ES could get him into a brand new truck equipped with an APU and no money down, would I consider it? To be quite honest, I was surprised by the offer and told him that I would absolutely be interested.
I provided ES with all of my financial information and they went to work. I soon got a call back from Jeff telling me that Expediter Equipment Finance was able to put together a package to get me into a new truck with no downpayment. I spent a lot of time on the phone with him learning more about Expediter Services and their discounts on insurance and fuel, as well as their support programs for Owner Operators. I also got to know a lot of the support staff when I visited their office; and everyone was knowledgeable, helpful and friendly. They really made a good impression on me.
SLN: Tell us about choosing your truck?
I really like Danny Vernon, Expediter Truck Sales Manager. He was extremely helpful and upfront throughout the entire process. It was like we were in business together and not just doing business. He helped me get into a 2018 Volvo 780. The really neat thing about this is that it’s the truck my wife and I wanted back when we got into the Lease Purchase, but had to settle for something smaller, so we’re really happy. It’s a great truck with a lot of amenities, including a ThermoKing TriPac Evolution APU and a seventy seven-inch factory sleeper. We love it!
SLN: What advice would you give someone who wants to move out of a Lease Purchase agreement?
My advice is to call Expediter Services! They truly have a Much Better Alternative to truck finance and their Path to Ownership is direct, simple and doable. Not only am I a true owner, more of what we make goes to our bottom line because of the benefits and advantages of Expediter Services program. There’s nothing like true truck ownership because you have much more control over your own destiny. I highly recommend ES to anyone looking to get out of a Lease Purchase agreement. Don’t wait to get caught in a heartbreaking situation like we did, call ES today!
Stay tuned for even more true stories of True Truck Ownership in upcoming issues of Spotlight News.
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