PacLease? (Paccard Full Lease)

Pac lease = Pac man eating your money....

 

I just heard yesterday on the news that the new tax laws have a pass through rate of 20% but if you lease equipment it does not apply. You must own your equipment.

I don't really understand how all that works, but I do think small businesses can qualify for that pass through rate.

They're still unfolding more of the details...

 

Why does everyone want to do lease purchase? PacLease is basically lease purchase. Companies like Ryder, Penske, WeLease, and PacLease charge a huge payment per week, plus a mileage fee per week to run the truck. I called Penske one day and they wanted upwards of like $6000 down $1000 per week and then $1.00 per mile to run the truck to cover maintenance and all the other BS. You might think your getting a good deal by doing lease because they cover all wear and tear except fuel.

 

They are not a lease purchase, they are a straight full maintenance lease

 

Still though even with that why waste your money.

 

those leases are designed for company's that need trucks but don't want to add the needed support staff, not individuals.

 

I ran the numbers out in great detail, and it was quite close. If your cost of capital is high (high interest loan, or high opportunity cost), it is probably cheaper to do a Paclease than to buy. I ended up buying because I am a control freak, and am going to try to see if we can make the truck last longer than the 500K lease term. Paclease will do minimum recommended maintenance, run re-treads, and whittle the maintenance down in every way they possibly can. Every time I said something like "no re-caps", they'd come back with a every so slightly better (chinese virgin tires), at a slightly higher price. I finally got the picture and just purchased outright.