Truck Leasing

Leasing sure can be a can of worms.
There's so many scams in leasing these days.

I don't think there's enough server space here to present all the various reasons or ways that a poorly written lease can & will burn you.

No matter how brilliant a sheethouse lawyer you think you are, always bring the lease papers to a real lawyer who understands truck leasing or at least contract laws.

Here's a typical scenario of a truck lease from any of the company lease options; You lease a used truck from your employer at a ridiculously high monthly price. He sees to it that you get good loads for awhile. Then, when the lease is nearly up they starve you out so you can't make the lease payments. They get the truck back, you retain nothing but a few bills & a bad taste in your mouth. They put a new leasee in that used truck & make more from it.

In the meantime, your credit suffers & have to look for another job.

The company probably made as much on the lease price as it did the loads you hauled.

Before leasing always show the deal to an attorney. There's way too much boilerplate on it that empowers the company & burns you.

 

Advantage - you aren't under "forced" dispatch because you are classified as an owner

Disadvantages - thousands of them.

 

With companies now paying people .40cpm+ there is no advantage.

 

I've seen some trucks go for $600 a week.

 

I guess I dont know what the average price for a new rig is (anyone?)...but they arent cheap. Even used can be spendy. So yeah...I think the payments are up there. I heard that exact same scheme down here about a trucking company. They train you, schmooze you into leasing a truck from them and when you are a few payments away...they stop giving you loads...suffocating you and you have to turn the truck back over to them because its not yours and you can no long afford the payment. Then they do the same thing to someone else.

 

It's common to see $600 a week go in truck lease payments. Then there's the misc charges that no one spells out in the lease. You get to eat the truck MX & repairs & of course there's an escrow account for that too.

There are some people making money in a leased truck. It depends on the lease deal & the load pays.
Not everyone is getting 0.88cpm loaded.
Some make considerably more than that; $2-$4 per/mi.

I don't know exactly who makes this money but I am willing to bet all the bigger rate cutting carriers do on the bulk of their loads. if they didn't, there'd be no way to stay in business & prosper in the way they are.

I'm sure some specialized O/O's are making in this neighborhood as well.

It all comes back to how good a businessman you are & a bit of luck.

In general though, leasing thru an employer is not good for you, just them. You're just cheap power to them.

Better you should save up for a decent, low cost truck & lease on or get your own authority.

There, again, is a whole can of worms in obtaining your own authority but I believe it pays better in the end.

 

Hi all
I am getting back into driving after a little while, I was thinking about the lease to purchase route this time around. I have been a company driver before. Any advice? Companies to steer clear from or anything would help being I will be a newbie. Thanks Joe