Lease concepts

It can be a bad deal- for everybody but the company. If you're determined and wise you can come out even. I've bought two L/P tractors, working on my third, now.

If there was no clear advantage for a trucking company they wouldn't even do it. A few are fair about it, but they will all get a piece of you if you don't complete the deal. And a lot of companies have found a way to make a profit on the turnover.

If it really goes bad, you can be sued, dragged through bankruptcy, get a bad DAC that blackballs you in trucking, end up with liens attached to your property- it can ruin you. And then there are the really ignorant folks that use a home equity for a down payment, use their savings or use credit cards for it.

Well, if you're informed, aware, protected and determined, you can do it. Maybe more than once. But, in the end it's nothing to brag about- when it's paid off, your wagon's usually faded, bent, rusted, worn and old. (Just like the driver.)

After all when you buy a truck, the truck drives you until it's paid for.

 

The percentage of failure is very, very, very high! Any bum can get a brand new shiny truck with no money down, no business sense whatsoever and no driving skills. The companies know this and there is an endless supply of them to keep the seats warm.

It can work to your advantage if you are smart about it. If you are very business savvy, can stay out for 3 months at a time, save your money and have a very good knowledge of the industry then you can make something of it. Most drivers don't though. Personally I think it is a good stepping stone to become a real owner operator though.

 

Yes they can and do! If you piss them off they can and will make you sit! That is why it is very important to establish a good relationship with your DM for a good year or two before even considering leasing. Not sure where you are getting $1.20 a mile but most of these companies pay their lease drivers $.80-.90 cents a mile. You do get fuel surcharge though. Real owner ops can get up to $3.00 a mile but $1.65-$2.00 is probably average.

Your operating costs break even at about 1600-1800 miles a week. Anything after that is fuel and profit. If you are a very experienced and refined driver you can turn that wasted fuel into profit.

 

560,000 miles? That truck is just getting broken in.

 

A brand new truck is the worst as far as being in the shop then a truck with 560,000 on it. Been down that road many times!

If you run your own authority you go through a broker or brave the load boards. You can also broker through large companies like Landstar or MCT. Getting a load isn't hard, getting the right one is! You want to be able to set your self up for the next load so taking an awesome load to FL might not be that smart when you have to deadhead back to ATL! 4wheeljosh you may want to check out the OOIDA website I think you will find a wealth of info there.

 

Also for an education read all the docked threads in the "Ask An Owner Operator" section. These are especially good educational threads too, IMHO:

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/146942-how-to-become-an-owner-operator.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/147854-what-would-experienced-o-o-buy.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/125507-what-estimated-operating-costs-o-o.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/148340-keeping-track-o-o-operating-costs.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/134211-no-experience-but-getting-authority.html



http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/64679-my-numbers-o-o-leased-crete.html

 

Yes that would be exactly the problem with leasing on to a company. They control your loads so in the end its all up to them to determine if you succeed or not. If its more advantageous to them to make you fail they most likely will.