Wondering how leasing works

Difference between Schneider and Werner is like comparing oranges to blueberries! Both fruity, different colors! Both will make you go to the bathroom!

 

The first thing you should have on your mind is being able to drive from point A to point B. You may not even make it through training. Let alone start worrying about how you are going to rent a crappy truck that is over priced.

Your focus should be on learning how to be the safest driver you can be. That cdl is no good if you cant pass the road test. These companies are known for black balling people.
Yes training pay sucks, but trying to make up for lack of income by leasing is only going to put you in the hole more.

Fuel is expensive, maintence is expensive,and even if its under warranty. You might have to wait 5 days b4 your truck is even looked at.

Stay away from leasing until you are familiar with the lies, and cheating. That goes on in this industry.

 

It doesn't work. Or at least it doesn't pay to do it.
Please don't do it.

 

When you walk in to the leasing office. bend over and grab your ankles...the leasing agent will show you how it works.

 

Just do some basic math. Your wage (as company) say .35 per mile.
Fuel at $4/g divided by 6 mpg = .66
Add those two and you have 1.01 per mile
Let's say you got lucky and average 1.30 for all miles you drive
you have .29 per mile after fuel and your wage
Let's say you get really lucky, and bang down 3000 miles a week for 48 weeks a year, the other 4 weeks off for maintenance and time off.
3000 x 48 = 144000 miles
144,000 x 0.29 = 41760
Lets say your truck note is a thrifty 1500 a month. x 12 = 18000
down to 23760
Lets say you buy tires once a year for your truck at a thrifty price of 4,000 for 10 tires
down to 19760
Lets say your insurance is a great deal and only costs you 8,000 a year because you are a new driver
down to 11760
Lets say you change your oil about 10 times for an average of $300 a shot = $3000 of
down to 8760

Over the course of that year, IF NOTHING GOES WRONG, ENGINE BLOW UP, BLOWN TIRES, ANY REPAIRS AT ALL!!!!!!!!!!!!!!!! Then, you will be able to pay yourself a small .35 a mile for your 144,000 miles. Your business will have 8760 left after those expenses are paid. I forgot, didn't even put in truck washes in there. If you can make it to the end and have saved this 8760 every year for 4 years, the day after you make your last payment the engine will blow up and there goes all your coin. Better have it saved.

These numbers are only an example. If you really ran 144,000 miles a year you would probably have little to no life. Do you really want to call a truck stop home? It is an all around recipe for disaster. Take the company position and let them pay for everything and enjoy it. When you have saved 25 grand in the bank from driving theirs and still want to own it, come back and research again. These lease to own deals are 99.99% designed to make YOU LOOSE.

 

I say bad idea as well but for yet another reason. Do some research on all the lawsuits from former lessees that sued because they were not given the miles, pay, etc. to even make their truck payment, much less a living. Common sense, if a BUNCH of other people have had trouble, it won't happen to you?

 

I'm just waiting to hear from the " oh you are just too much of a bunch of #####'# to make it as a lease operator. I made $1,000,000,000,000 last year because I know what I'm doing" crowd.....

 

Wow, thanks for this thread guys....What is going on with our country and these leases ? This is just awful - an honest hard working guy trying to make an honest living, and there are companies out there screwing these individuals over...Sad, Very Sad....

I was actually looking at the TransAm website myself and their nice trucks, and that leasing deal looked appealing to me....But after reading this thread I can honestly say no way....I'll be looking at being a company driver.

 

Look at it from the company's point of view. The reason drivers do a lease purchase is because they don't have the discipline to save their money to pay cash or for a good down payment. Another reason is that they likely have poor or no credit. The company does assume a risk. I spoke with a major carrier a couple of years ago and he told me that they about broke even on these leases. There are some lease operators who abuse their equipment and trash the interior just as they would being a company driver. The company will then need to come in and detail the truck and/or make any needed repairs at their expense. I doubt that any carriers are getting rich doing these leases. It likely does give the company more longevity with drivers.

 

It's pretty simple really.

Sign your name

File bankruptcy

Make a thread about " they ruined your life"

That's all .....