Lease purchase ???

Even a "walkaway" lease can affect your credit depending on how the contract is structured. The leasee generally is responsible for the condition of the truck, so one has to understand what the contractual provisions are concerning repair of damages, and how the escrow monies will be applied to repairs and outstanding obligations. The catch comes when there is an outstanding bill when everything is said and done.

If one turns in a trashed truck... don't be expecting to walk away from what you owe.

 

Most of the companies that lease trucks require the driver to pony up some escrow cash which they can deduct from settlements a little at a time over several months. When/if the lessee turns in the truck the company has 45 days to settle up with the lessee and return the escrow money. What they do is go thru the truck looking for every little scratch and stain and wouldn'tcha know it, it adds up to more than your escrow and they send you a bill lol.

While you're leased onto them they pat you on the head like a good little puppy so long as you run your 10,000 miles a month, meanwhile they are keeping all the fuel discounts to the tune of several hundred dollars a week and running you about 130 miles per 100 miles paid which reduces you actual cents per mile pay so in reality you the lessee is paying for the plates, tires maintenance lights at the terminal, holiday bonuses for the DM crew back at the terminal and your one day a year 'free' soda and hot dog that they bought with your money. But that pat on the head is worth all of that theft to some....

 

That all depends... and that's why you read the contract and do the due diligence BEFORE you sign the contract. Not every lease deal is structured in a way that skims the fuel surcharge and ability to save money by working the state tax rates.

 

i've never done the lease, but there have been stories of people having collections.

i know of one from central for 50k. i've never seen the record of his credit profile, but i know them personally, and they still talk about it to this day after 4 years.

 

Do you have an empirical data to back up the 30% ... because I have my exact odometer miles and all dispatched paid miles for last year and it comes out to 7% ... and that 7% includes everything ... every wrong turn, on and off the big highway and all my OD driving.

 

No I was just putting out some outrageous number but I think 7% is about right in my experience with Swift too. So looking at 107 miles driven per 100 miles paid extrapolated out to 2500 miles a week paid odometer should read 2675 actual miles driven for pay.

2500 miles times $1.35 = $3375 dollars. Take that revenue and divide it by the actual miles to come up with the actual per mile rate = 3375 / 2675 = $1.26 per mile = $0.09 cents per mile the carrier is skimming off the top of the lease operator's pay times 2500 = $225 a week the lease operator doesn't see on his settlement times 40 weeks a year comes out to $9000 bucks the carrier takes from the lease operator to pay for the 'free' plates, permits, tolls, trailer maintenance, lights/sewer/water/garbage/computers/internet/driver's lounge/showers, janitors/equipment techs and bonuses for terminal/driver managers, driver appreciation hotdogs and belt buckles etc.

Fuel surcharge-- who knows their formula for that. Conservatively figure they are keeping $0.05 cents per mile for themselves against 100,000 miles is $5000 more dollars per year they are capturing back from the lease operator in exchange for a picture on the wall, and a handshake for a job well done.

Fuel Discounts they keep, figure $0.50 conservatively again that they don't share per gallon per lease operator would work out to another $6000-$8000 a year kept by the carrier/shielded from the lease operator.

Just those things alone add up to over $20,000 a year the carrier 'steals' from the lease operator. When the lease operator calls in for help "what am I doing wrong?" the answer is usually to bat the blame back on the lease operator. If the 'benevolent' lessor company really wanted a true business partner in lease operators, one would think they wouldn't be so bent on drilling every penny out of these poor guys.

Lease operators say "it's not how much you make it's how much you keep"

Leasing companies say "it's not how much we make it's how much we take"

 

Not the case for me. I even received a $5000 bill from them that quickly got thrown away. They didnt put it up for collection at least but reported it to my credit as 60/90 days late.

 

Leases vary from places to place. How they calculate certain things, what do they hold back or other contractual obligations vary too much. Sure most follow a basic outline. You simply can't talk about one by bringing up another one from somewhere else. Apples and oranges. What they did over there may or may not apply here.
As soon as you sign up you then become a business. Being able to drive 10,000 miles a week does not make you a businessman.
Failure to have the contract looked over by attorney and not understanding all the points before signing? You just failed business 101.
Two main reason why most fail.
One, generally the lease contract is bad.
Two, lack of experience and unreal expectations.
Add those up and sure the fast majority will fail.
This place I'm at has a lease purchase program. All they will tell you is that they have one. If you want too they offer it. End of conversation. Its not advertised, pushed, or promoted beyond just saying they have one. Its just a service they offer to make some people happy. They would be just as happy not to have it. Its not really a part of their business model. Is it a good one? Who the hell knows. Probably not for the average non business man driver.

 

I think I just failed business 101 then....

 

True, but all of the ones that I've seen so far are structured in a way that the company ensures that the driver has to run their butt off in order to earn something comparable to what a company driver would earn. Benefits the driver in that it keeps them from getting lazy, and benefits the company in that they get the productivity that they're looking for.