Lease Purchase, share the do's and don'ts with me please.

Not sure I wanna open this can of worms but doing a lease purchase from a carrier and owning a truck and leasing it to a carrier are two entirely different things. I own my truck but I don’t have operating authority so I lease to a motor carrier to use theirs and also have access to their freight.

 

You response does not really answer the question, IMO.

Why do you say that you lease to a motor carrier to use their operating authority? Wouldn't it be more accurate to say that you own your own truck but you don't have operating authority so you work for a motor carrier to use thier authority and also have access to their freight?

I don't see what you are renting from the carrier.

 

No because it’s a lease. I work for myself, they don’t get to force dispatch me. I lease my power unit to them and provide the driver (me).

With a lease purchase from a carrier the person is basically doing a rental, very few actually end up with the truck in the end because the cards are stacked against them. The carrier is essentially their bank and the carrier controls their income. They don’t build equity in the truck, and very few plans allow them to take the truck wherever they want.

When you finance a truck on your own it’s yours to do as you want. If one carrier doesn’t satisfy you then you’re free to leave and go to another carrier. You’re not making the payments on someone else’s asset when you finance on your own.

 

And you have to sign a "Lease Agreement" to operate under their motor carrier number. A contract that lays out(defines) the terms of what is required and the income stream, such as deductions.
This is something that a lot of "Lease Purchase" fail to read as they come here and complain they are being robbed when their failure is basically written into the lease.

 

The next time some jackwad tell you about how great a lease purchase is, ask jackwad if you are required to use a shop of their choosing for a PM service or when you pull into one of their terminals, their shop employees can order repairs without your consent. Why is this important?

Because, requirements like this can and will wipe out your maintenance account for thousands upon thousands of dollars every time you pull into the yard. A maintenance account will cost you about $.20-.25/mile, builds up quickly for a hard charger, and suddenly…

…gone.

One moment, you’re looking at $5000. The next moment….

…gone.


And everyone is smiling at you.


You people looking at a lease purchase from a mega carrier, or that well known BuyHerePayHere place in south Mississippi, that’s where they get you. You are already pay 2X-3X the cost of wholesale for the bottom end POS company schmuck spec’s rig, but they can raid your maintenance accounts too? Prepare to get burned.

 

Pretty much every lease/purchase scheme I've seen was designed to separate hillbillies from their money....

 

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The trucking company is leasing a business asset from the truck owner, just like the trucking company probably leases their land/buildings from the property owner instead of buying/building on land they own.