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Shortline Only Leasing Locomotives Instead of Owning?

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Shortline Only Leasing Locomotives Instead of Owning?
Posted by RailEagle on Monday, March 11, 2019 3:55 PM

I have never railfanned that much around shortlines and am curious if this is something that normally  happens? It‘s for my model railroad. (I custom painted a few leasers)

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Posted by tree68 on Monday, March 11, 2019 4:07 PM

I would opine two possibilities:

One, their future isn't as secure as they'd like, so rather than a sizeable investment in locos, they're leasing.

Two - they've decided that leasing is cheaper than buying.

Other possibilities include needing temporary power, or having bought a loco without having the seller repaint it, or having been able to do it themselves. 

A lot of people lease cars and trucks any more.  When you add the cost of ownership to the purchase price, it can make sense.

LarryWhistling
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Posted by Convicted One on Monday, March 11, 2019 6:47 PM

RailEagle

I have never railfanned that much around shortlines and am curious if this is something that normally  happens? It‘s for my model railroad. (I custom painted a few leasers)

 

So is this something you've observed in the real world and want to incorporate into your modeling......or

is this something you've already done in your modeling and you are curious to know if there is some factual basis in the real world that validates what you have done?

It might make sense in the real world because that way they can expense 100% of their cost as incurred, as opposed to having to capitalize and depreciate a purchased unit over several years. 

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Posted by seppburgh2 on Monday, March 11, 2019 8:49 PM

For real-life sale or lease, see:  http://www.sterlingrail.com/classifieds/Listings.php?type=Locomotive&fsw=FS

But, if your are into kit-bashing in 1 to 1 scale, check out:

Now, just got to find my Athern Little Hustler to get started.
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Posted by RailEagle on Monday, March 11, 2019 9:12 PM

 

seppburgh2

For real-life sale or lease, see:  http://www.sterlingrail.com/classifieds/Listings.php?type=Locomotive&fsw=FS

But, if your are into kit-bashing in 1 to 1 scale, check out:

Now, just got to find my Athern Little Hustler to get started.
 

I actually know of Sterling Rail, they had the misfortune of leasing three of their locomotives to a shortline of the first type mentioned in Tree68‘s post, including the one that serves as my profile pic.        

            

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Posted by RailEagle on Monday, March 11, 2019 9:14 PM
Bit of both I have done a couple and am deciding if I want to paint the last one or two in a lease scheme or as the short line.
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Posted by tree68 on Monday, March 11, 2019 9:54 PM

RailEagle
Bit of both I have done a couple and am deciding if I want to paint the last one or two in a lease scheme or as the short line.

It's your line - it's your back story.  

F'rinstance, all of your locos were leasers, but you've now purchased two and painted them in your scheme.  The other two are still on the property, but you haven't decided to buy them and paint them just yet.

Or, you've had an up-turn in business and your own locomotives weren't enough to handle the traffic.

Maybe your shortline just acquired another line and these leasers came with the deal.  Perhaps you're using them until the new(er) locomotives you bought arrive.

Patch them with your railroad info - you bought them, but your railroad has just been so busy you haven't had the opportunity to paint them.

The variations are endless.

LarryWhistling
Resident Microferroequinologist (at least at my house) 
Everyone goes home; Safety begins with you
My Opinion. Standard Disclaimers Apply. No Expiration Date
Come ride the rails with me!
There's one thing about humility - the moment you think you've got it, you've lost it...

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Posted by samfp1943 on Monday, March 11, 2019 10:07 PM

seppburgh2

For real-life sale or lease, see:  http://www.sterlingrail.com/classifieds/Listings.php?type=Locomotive&fsw=FS

But, if your are into kit-bashing in 1 to 1 scale, check out:

 
Now, just got to find my Athern Little Hustler to get started.Smile, Wink & Grin

That Lil' Critter shown in the last linked photo; Looks like a slow week around "Larry's" or 'Pieliet's' @ Chicago.    Or maybe, a take on Johnny Cash's song "...One piece at a time..."   Oops - Sign   

With an appology to Oscar Wilde: "...Model Railroading imitates life, more than life imitates model railroading..."  Whistling

 

 


 

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Posted by mudchicken on Tuesday, March 12, 2019 12:41 AM

Very few shortlines own their power. The best way to have reliable power and have backup available without cashflow problems is to lease. If the line is just starting, make enough $$$ to have a reserve, think about having a mechanical guy that is also a good diesel mechanic ($alary count$) and put off buying a piece of dated technology until you find what you want.

Mudchicken Nothing is worth taking the risk of losing a life over. Come home tonight in the same condition that you left home this morning in. Safety begins with ME.... cinscocom-west

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