Car carrier lease purchase?!

Yeah um, screw that! I am not happy so far with the high rail doing one pick, one drop much less anything else.

 

Doesn't united road have a lease deal.

 

DAS offered me a deal a couple of years ago for $2.50 mile to run terminal to terminal under my own authority. When I asked why it was so cheap the responded with they have to be competitive with all the other POV brokers.

 

I was going to start a new thread, but since we are already on the subject I am going to hijack this one.

Since I was pissing and moaning about all of the taxes I had to pay this year, it got me to thinking about truck leases, not lease deals through a company, but leasing a tractor outright and being able to write off 100% of the lease vs writing off 50% up front on a 179 writing off the rest over 5 years, BUT then taking a beating when you sell it for top dollar and then get taxed 100% on what you sold it for because it is "profit".

Thoughts???

 

That may be the way to go. I know of some very large companies that lease all of there trucks. They're not doing it to loose money and there pockets are deep enough to buy all of the trucks that they want.

 

I know the big orange company uses a separate company to buy all their trucks and then leases them to the "trucking" company. This way the "trucking" company can write off the lease payment and the company can write off the depreciation and miles.

I personally leased my truck when I bought it, but from an outside finance company not assoc with any peticular trucking company.

 

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I am running the numbers, but I am not seeing a savings on leasing? I mean yes the lease company does take care of everything, but then you also have no repairs to write off, I think what it will come down to is they (the Feds) have you covered no matter what you do.

As far as the mega carriers leasing, I would assume it probably has something to do with the shear volume of trucks they run ALONG with their turnover rate on equipment, the paperwork to purchase, run, resale, trade, and purchase every two/three years would be ridiculous., along with the tax depreciation schedule??? JMHO

 

We have used conventional leasing, full service leasing, and conventional bank financing to acquire equipment and out of the three conventional financing is the most cost effective. Full service leasing was outrageously expensive compared to what it actually costs to own and operate the truck. Conventional leasing works just like conventional bank financing except you can choose to either fully depreciate the asset or deduct the lease payment then depreciate the asset after the buyout, assuming you keep it long term. We don't usually sell off equipment so we haven't had the disadvantage of capital gains on the sale of fully depreciated assets, but the off the balance sheet aspect helps if you are cash poor and willing to risk being over leveraged, helpful as a startup but dangerous once you are established. The yerms can also be better on leasing and they overlook minor blemishes on you history, more liberal than conventional bank financing. Fully service leasing on the other hand is very difficult to get until you are well established and have excellent credit references.

This year we bought older equipment outright for cash, it was either that or pay tax on retained earnings since we don't want to run newer trucks. We will be buying another trailer soon and that will be a lease, right now our dealer can get us better lease rates than our business bank can for conventional financing.

 

I work for one and have worked for 2 others. They lease the trucks from themselves under a different company.also real estate company could own the land. Each business takes a turn taking a loss......