Lease purchase companies deceptions

This may well be well known to those whom been in this industry for years. I knew about it when I signed the contract because I read it through and through.

But, many of these lease to purchase companies will make it appear as though if you get a truck with through them, you can take your truck anywhere and they aren’t tied into any one particular carrier. This of course is not the case at all. Many will require a large deposit to move your truck and some attach clauses that asks for absorbent amount of insurance such as having $2 million just in liability insurance to make it even more impossible to move your truck. Can you image the premium insurance rate on a $2 million dollar liability insurance not including comp/collision, trailer, and cargo? For me it would be well over $5,000 a month.

For instance, SFI had a FB post advertising no money down for a brand new truck or a semi used truck. Many wanted to know can they take the truck anywhere they wanted. SFI was posting responses that you can take the truck anywhere and that they were not tied to any carrier. However, I called them on their BS and posted that I was told I needed to pay them $10,000 plus whatever deposit they want me to pay before I could move the truck outside of being leased unto Schneider. SFI quickly deleted the FB advertisement.

Please read those contracts and make sure you understand all associated fees if your plan is to move your truck.

 

Well I know that my credit is extremely poor. But I was quoted $10,000. And that did not include the deposit for the truck nor any other costs such as insurance requirements. Perhaps I'm just getting a bad deal all around in this industry. Someday, perhaps I will get better quotes for insurance, truck payments and be completely free from any carrier.

I have my own authority and I want to run under my own numbers. I was hoping to move away from my current carrier that I'm leased onto because they simply aren't paying very well. I mean, they want 3000 miles for a $1300 net settlement and this is ridiculous for an O/O. I hear so much rave about Landstar and how well they pay so I was looking to cut my loses with my current finance company (doing a voluntary surrender of my truck) and going with SFI to take over to Landstar. But, after the rep told me that I would have to pay $10,000 just to take my truck over to Landstar plus pay for the down payment on the truck, I might as well stay where I'm at.

 

I already have a truck. From my research, I’m better sticking with what I have now. I only have about 2 years 9 months left. Not worth getting into another contract at this point.

 

Exactly my point. They are being deceptive by telling drivers, come get this shiny brand new truck and you can take it and go anywhere you want. That’s a lie. Yes, you can get a shiny brand new truck and might be able to go where you want, but, there will be a fee associated with you taking that shiny brand new truck anywhere you want to go.

Depending upon credit, a dearlership wants anywhere from 20% to 40% down before they will hand you the keys to that shiny brand new truck.

My truck asking price was $131,052. Down payment was $30,000. With my finance company backing the loan, when I finally pay it off, my shiny brand new truck will have cost me $176,052. The way my finance company agreed to take me on with my bad credit due to debt to income ratio, I had to find a company that I could lease unto. Landstar wouldn’t take me because when I got my truck, I had less than a year driving experience. I wanted to lease to a company that worked off a load board and non-forced dispatch. That left Schneider and the current company I’m leased to now. Schneider turned me down. Oh well their lost. Now, according to my finance company, to run under my own numbers, I have to pay $10,000 plus first month truck payment. So for now, I might as well stay where I’m at until I finish paying off my truck unless I come up with the extra $10,000 plus first month truck payment. And, I must admit, I’m not making enough money to come up with $10,000 plus first month truck payment.

Before anyone says I’m being scammed, no I’m not being scammed. My truck came from the International dealership. I’m financing my truck and not leasing my truck through a carrier. All costs goes towards the payoff of my truck. I have my own authority and I’m paying for double insurance as a result. I have an office with staff. So, all the money I make, goes back into my company. I’m not out buying BMW’s, houses, taking vacations. Everyday that I work, my money goes right towards my business. I’m building business credit and establishing my company. That’s far from a scam.

 

Since I’m the only driver for my company for now, there is a lot that I cannot do by myself. They handle most back office administrative tasks while I’m out on the road and inform me when I need to head back to my office. In the beginning, I had all this stuff piling up at home so when I returned home, I would have a pile of mail, missed important dates, and no place to meet people at. So the office space with administrative help is essential to the operation of my business.

I also have additional expansion plans that would involve having a physical address such as holding driver orientations and potential customer meetings. My company will expand into not just dry van freight transportation but also dispatch, brokerage, and I’m looking into activating my IRS Enrolled Agent license to once again represent commercial drivers. I also have some other ideas which I’m currently researching that would expand my business further into the transportation of freight.

I have no plans to just drive for 20 years. My company will have multiple revenue stream all within freight transportation.

I came into this industry with a plan of action. In order to make this plan a reality you have to make the moves for it to happen. Just wishing and dreaming about it will not make it happen.

My first plan of action was to purchase my first truck within my first year in this industry. The second plan of action is to operate under my own authority. The third plan of action is to begin expansion process. The forth plan of action is included with the 3rd plan of action by beginning to add trucks, trailers, and bringing on drivers. So on and so on.

Will there be setbacks, challenges, and hurdles? Yes. I’m already starting to experience it as I have written about on this forum. The key is to make it work. Find a way to make it work. Seek out the right mentors and don’t try to be like Mike.

My end plan is in 10 years, my company will be a multi million dollar company completely running off of auto pilot. Meaning that I will not have to drive. I will spend my days traveling while I watch my bank account grow.