Who has completed a lease purchase and fully owns truck with title?

I would think that dry freight, reefer and flatbed covers a LOT of the industry... But, I have also seen L/P on tankers, heavy haul, LTL as well..

 

Lowest for sure.

 

First, sorry, I realized my comment came off a little snarky.

There is a risk and reward. I still don't understand why a majority of the O/O's lease to carriers that pay so low. I guess it is the easy road for people that haven't stopped and looked at the business.

Good thing for all that are in the percentage side of the game is that not only have rates gone through the roof but the big boys can't seat trucks and are selling off trucks to get their numbers back in line. This is a long term situation that gives O/O's the potential to make good money. Big companies are partnering with small fleets because these are the companies that can hire and retain drivers.

 

I would like to see the L/P in other sectors of the industry. I know of a couple and thats it. ATS being one of them but they let you only pull dry van or flat. No oversize. The profit margin is too great with company heavy haul drivers.Here is the deal. Dry van mega carriers have figured it out. They take 15-20% off the top. You are saddled with the rest of the bill. Truck payment, insurance, maintence, fuel, and drivers wage. The problem is that usually there isnt a 15-20% profit margin in the rate. So they get their money and you suffer. But think about it. They are the ones negotiating the rates. So, they drive down the rate, take their cut and watch you fail. Then sell the same truck ten times. L/P does work but there has to be enough money in it for everyone. Sad part is, dry van reefer and flatbed freight has gotten so cheap it usually doesnt work

 

Rates and available freight is up pretty much everywhere we run.

 

We are getting comfortable with the new, higher rates. This week the fleet is sitting at above $2.40/mile and everyone is complaining about how the rates have fallen off. Last year at this time you felt like you hit the lottery when you got $2.

I would have thought that carriers that pay percentage and have a large contract freight base would be feeling the pain. But was reminded that their drivers don't see the capacity/rate issue like smaller carriers that run more spot freight.

 

I read a post by RPSloan that was posted on 3-6=2014 saying they offer a L/P to heavy haul drivers.. on an ATS thread.. Another company that has L/P that also hauls heavy haul is Sammons Trucking...

Their also seems to be plenty of L/P drivers doing OK hauling vans on Schneider Choice board.. Since they offer a walk-away lease with NO money down, why would they want you to fail??? Just so they have to train another person?? doubt it....... they also offer a bonus to sign on.. Wish that was offered to me when I started trucking and bought my first truck back in the 70's....

 

There is no way to know how long this will last, but I will enjoy the ride.

 

Sammons is a good choice,I forgot about them. As far as companies wanting you to fail. They dont care if you fail. They will sell or lease that truck five times before its over. And what you may consider doing ok another man may see as going broke. All in the personal needs

 

The capacity issue is driving rates. We can feel more comfortable this year that it is a longer term issue and rates have finally gone up. We have several factors at play that only more money is going to solve the capacity issue.

Because larger carrier can't hire and retain drivers they are selling off equipment. When you go a quarter with 10%+ of your fleet un seated you have to do something. And they just can't hire enough so they are selling trucks.

I know people are saying that they can just pay more but before that happens they need to get the money from the customer. That is happening but it takes time.

If you look at the large carriers you will see that they are focusing growth on the logistics side. They are partnering with small carriers that have the ability to hire and retain drivers and helping them grow. And they are getting new freight for these new relationships at rates that are doable.

We are still going to have ups and downs. We will still have markets that have over capacity. But when our downs are seeing rates that are 20% above last year and the rates going to the over capacity markets are 50% above last year we have moved into the right rate range.

And it is going to get worse for the large carriers. When a small trucking company like me can work a deal with a large trucking company that allows me to pay an O/O $1.60/mile on all miles with full-dispatch it is going to get harder and harder for the same companies to keep O/O's when they are paying them $1.40 on loaded models.

Better yet, if I was inclined to run company trucks I could pay a driver $.50/mile on 2,600 miles a week. So you can bet that others are going to be able to do the same and take those company drivers.