Leasing A Paper Log Peterbilt

I work for a company in Chicago OTR I’m a company driver. I have the opportunity to lease a 99 Pete 379. Truck is in great shape inside and out (not sure about mechanically yet) the company has terrible reviews online mostly talking about escrow. That doesn’t bother me because the company tell you up front if you break the lease the escrow is not returned so those people just weren’t paying attention. I’ve never driven an old truck but it’s my dream to own an old Pete. Should I risk it and try to get the truck I dream about or stay where I’m at. I make good money and miles are consistent where I’m at but I’m sick of working for someone. I want my own truc

How much money do you have saved up for repairs, tires, permits, taxes (Social Security and Workers Comp) and everything else that goes into being an LO?

You're looking at a "dream" truck and salivating over it without thinking everything through. I can tell you, as a company driver, I make more money than most lease operators that I have talked to. When I ask them what they make per week or even per month, I get told their gross pay, not their net pay which is what they actually make.

In this economy, it is far better to be a company driver. If you break down and your truck is in the shop for a week, as a company driver you get layover pay and your motel paid for, if you drive for a good company. As an LO or OO, that expense is on you. About 6 months ago I got stuck in Cheyenne for 8 days and even the cheapest motel was 80 bucks a night with the truckers discount. That adds up fast.

I'm sure some of the guys will be along soon to give you more insight about being an LO.

Laura

There is alot here to look at, but i’ll keep it short and to the point.

You have never driven an old truck, that won’t be the issue. The important issue is have you ever driven a ling hood truck?? They drive much different than short hood trucks.

You say it’s in great shape inside/out BUT you don’t know it’s mechanical condition. The mechanical condition is the most important part here. You can paint and shine it, but if it’s not been kept up mechanically it can and will be a money pit.

Do they have the maintance records available for your review??? Has it been maintained by a reputable shop or some guy the company has working for them?? Are they certified to be working on it, or what we call a backyard mechanic??

Chicago area does not have a reputation for having these types of programs on the up and up. Alot of crooks up there that screw people everyday.

Do you currently work for the company wanting to lease to you??? What type of freight and what kind of rates are they getting?? How are they paying mileage or percentage??? Fuel surcharge???

What is the terms of the lease?? Is it a straight term lease or a lease purchase?? What is the value?? Does it match what the truck is actually worth?? What restrictions does the leassor put on you regarding getting work performed???

379’s were good old trucks just as the 389’s. As with every truck each year model has it’s quirks. Has the motor been inframed??? What motor is in it?? Do you have any money saved for maintance???

Depending on what drivetrain it has fuel mileage will vary as well as what your pulling but as a general ballpark your looking at 5 mpg. With high fuel prices that can be a challenge.

Take a long hard look at everything before you decide. This ecomomy has been in the toliet the past 18 months on rates and available work. No real end in sight at this time.

Companies, esspically smaller ones that lease trucks often but a million restrictions on lessee’s and nickel and dime you for everything they can think of. I’m sure there may be some reputable ones out there, but they are few and far between. How many trucks do they lease out or have leased out. What is a honest percentage that complete the program successfully??

This industry is and has been hard and I just hope you will think about the entire situation and make a sound informed business decision before you get into something that could go horribly wrong for you.

Let us know how it goes!!

I wouldn’t do it bro. I’ve very seriously considered buying my own truck and maybe still will at some point but I will have enough money saved up to buy it outright and have at least just as much money left over for repairs and issues that may happen in the first few months before I could get more saved. That’s the only way I’d even try to do it in the current state of things with rates being low and freight being slow everywhere you look. Even so I’m planning on staying company at least for now. I definitely would stay far far way from shady outfits in Chicagoland. I have always wanted a 379/389 or W9 as well but I can wait. It’s not worth ruining myself financially by leasing from a shady outfit in a terrible economy just because I want a shiny hood truck

Michael, I can understand your interest in that truck. It’s what is called “infatuation”.

You might meet a drop dead gorgeous girl and become infatuated, but beneath the surface she might be nothing but trouble. You see where I’m going with this? Your heart gets all tied up with this girl and common sense completely deserts you.

That truck is the “girl”. Others have advised against making a move on it and that is sound wisdom.

Fuel prices are going up, rates are going down and the economy is quickly racing towards another depression but hey, buy a truck that you're almost guaranteed to lose. If it has a kitty under the hood, a platinum rebuild will run you just shy of 50k. The N14 can be purchased new for just under 40k and a big cam 400 Cummins is just over 35k to rebuild. If that's been a working truck for the last 24 years it's easily a 2 million mile unit or more and unless everything has been replaced with documentation, you're looking at a money pit. That's the kind of truck you throw money at and put in shows, not rely on for your income unless you have a lot of money in the bank to start with.

Any time I'm in a shop for anything, and they ask how are you paying for it today, I very happily reply, "Company." and don't have to worry about a thing. I got three tires replaced just yesterday. Also takes away the stress of not choosing what to replace it with. Company's money, company's choice.

Well, I was a Cummins certified engine tech back in the day lol ....Now days there are O/H kits depending on the engine, 400 big cam 3-4's kits are $7,000+ Where as, the ISX 15 kits with injectors, cam and followers, head it can run ya $15,000 + yet there are complete reman. engines, ready to swap out for just a bit around + or - for $20k

Gawd I used to hate torquing down those main bearings to 600 ft pounds on your back ughhh ! That long torque wrench gets heavy, fast ! haha.....After many years lugging those thick Cummins factory service manuals around.. I tossed em out since I had no further use for them....BC 350-400's 3&4, and the NH 855

So, as most guys would have a shop do the work, from $85-$120+ an hour labor, @ 30 hours, You can get in the neighborhood of $30k .....Those big 3/4" sockets and big wrenches ain't cheap lol