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Buying Railcars, then leasing them to railways.

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[quote]QUOTE: Originally posted by macguy Hello, I was just curious about what it takes to buy a railcar or railcars and lease them out to railways. A large sum of money and a knowledgable, well connected staff. Do you purchse the railcars brand new from a railcar manufacturer then lease them out? This is one way, but given the high cost of new railcars this is quite rare. Some larger leasing companies like CIT have used this route. Not recommended for beginners. What kinds of prices do you pay for new railcars? Varies significantly depending upon the type of railcar and number ordered and incentives offered by the builder. Do people buy used cars and lease them out? Yes. Do a lot of people do this? A fair number. Most have leasing companies, but there are a few individuals. A lot of Doctors and dentists lost a LOT of money buying up railcars in the 70s when loose rules could bring large earnings. This market dried up when the rules tightened. How do you get paid for the use of your car? Car owners are paid by each railroad a daily/mileage fee known as "car hire" and formerly known as "per diem" Is this a fairly common thing that's done by individual people who just own one or two cars? No. Any info or webpage links would be helpful, I was just reading about this somewhere and it peaked (piqued?)my curiosity. [/quote] LC
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