Want to avoid getting burned by a lease-purchase agreement?

I never had a desire to be an O/O but I remember reading somewhere to Never buy or lease a truck from someone that controls your dispatch. This makes perfect sense to me.

 

Lease or fleece? Another link re CR England

 

I am aiming to own my own rig.. But never thought that lease things was worth a dime.

 

Who is it?

 

Heres how my 1099 broke down just after 6 months of leasing in 08 with C.R.England

total for the year was 41018

after expences

total driver income 4322.19

That is with no major break downs only 1 drive tire and low voltage DC being replaced on the truck

Now after growing up around trucking (father, step fathers, aunts, uncals all being truckers) I took lease the KNOWING how balance a budget and for 6 months I lived off 4322.19 before my ex had our son complications lead to me quiting the company. Not saying i wasnt quiting before that but i gave it an honest shot and noway can you win in a lease with a company take it as proof every company out there will nickle and dime the driver to death. ANY new person on here reading this take heed there are 21 pages of posts here warning you read them and if you still want to lease and be the big dog like there talking it up you go do that just remember what ya read here. Because I have solid numbers hard facts i would post them here but my scaner is broke. when I get new one ill post up my finnal statement from the company and show you just how bad you will bent over with out lube.

 

I have been a driver for 23 1/2 years, Owner-Operator ( Yes I own the truck) for 3 years and I just don't understand why people get into something, Expecting to make more money. I watch drivers everyday at the company I' am leased to ( FFE Transportation) go into contractor relations and sign on the dotted line and most don't have any idea on how to run a business. When you buy, lease or otherwise obtain what is considered "Your Truck", You are NO LONGER at the top of the pay list. That truck has Fixed and non-fixed expenses, It don't run on nothing. In My personal Opinion only: If you want to own your truck, Go out and get it on your own. I have heard that "My credit is Poor" I don't have the cash and leasing lets me get one without money down. IF YOU CANNOT AFFORD to get it on your own, YOU HAVE NO BUSINESS DOING A LEASE.. A lease is what it is, A LEASE, As in YOU are LEASING the truck, NOT BUYING IT.... C.R England is one company who rips off it's contractors, The price is WAY OUT of the ball park. ( NEVER BUY NEW FOR YOUR 1ST one unless you have CASH or 50% down) I have a 2003 Freightliner ClassicXL and it's payment is $800.00 per month, I have 14 months remaining to pay it off, That Means that it Belongs to me with a clear title. Drivers see that Mileage pay and fuel surcharge and start thinking about that high pay. when everything comes out and you have the correct tax service and did it all right. You should have CLEARED 10% above a company Employee driver. I could List here how I run Mine, But I will not as that is my Personal Company interoffice only info. When I got my truck, My credit score was a 610. I put $2,000.00 down on a $38,995.00 truck loan with 2% interest rate for 47 months, I actually wright off more per year on depreashion than My payment is, Plus I have a APU that I paid $9,800.00 for and get to spread that out over 3 years as well. Yes I did put a lot of money into it this year, I lost the Clutch in Febuary this year, Total cost was $2,700, I had a non-preventable accident and that cost $10,000.00, I replaced the tires to the tune of$3,700.00 ( used Company national account for the Huge discount of$114.00 per tire, That was Low rolling resistance Bridgestones for the steering axle and Goodyear low rolling resistance drive tires and I had a $1,000 road service because I blew 2 drive tires because I ran them longer than I should have ( they were a really cheap set)PLUS all the expenses for the year and it's not over yet. So far, I have GROSSED $147,000 this year, When I get it all fugured out, With .10 cent per mile clear money, I have $13,000.00 in the business account, I paid myself $35,000 and all the rest went to EXPENSES and Taxes. I put $30.00 and $11.00 per week into a account at FFE for Plates, permits and FHUT form 2290 at $550.00 per year, I pay IFTA quarterly, I pay a accounting service to maintain my business books, I pay for almost all the expenses required to maintain a ONE TRUCK COMPANY and I' am the only Employee. I' am the one who has all the overhead, I' am the one taking the risk and I' am the one to blame if things were to go Bad, It's all on me.


WANT TO KNOW HOW TO AVOID GETTING BURNED ??????


If you don't know anything about running a business, STAY A COMPANY DRIVER, Or take a business course and Write yourself a business plan and stick to it and change it as needed..



TOO many think that they will make more money being a contractor. 99.2% of them will see The net income for the 1st and maybe the 2nd and 3rd years LOWER than what you would have made as a company driver. I hear this " I ran the numbers" thing a lot and those who do this usually fail. I suggest going to the company and getting the cost for all the fixed expenses and then run the truck like it was their own, Keeping up with the Normal and do this for 6 months to 1 year. If you actually do it and do it right, You will know weather you are cut-out to be a Contractor, Or Remain a Company driver. Most everyone who gets burned, Burns themselves. YOU SIGNED that contract on that truck, That is ON YOU !!!! THINK BEFORE YOU TAKE THE PLUNGE !!!

 

I totaly agree with this post and that is exactly what my uncle who is a O/O told me before i leased ( im hard headed ) I should have listioned

 

i made the mistake of buying 7 trucks thinking i would make 7 times more money. ha ha ha the joke was on me. but the trucks were 32 thousand and short change in 71 and my payments were about 325.00 per month and trl payments about 150.00 per month jon

 

Honestly,

I hear these stories every day. I wonder why any driver would get a l/p deal from a mega giga carrier? First of all, I would never even be a company driver for a big company. You are just a number there, nobody knows you, you are your driver ID ie 23003. You dont exist there as a person. Go to a small company, they need you, you need them. Yes, you will have a breakdowns probably more often, but your load planner and your boss, they know you. You can call and say I need to go home and they will bring you back home... On a l/p deal, I am an O/O but I bought my truck myself (private sale), no dealers, interests and stuff. There are plenty of small companies that will lease you a truck with 0 down, pay your repairs and deduct it then later from your check on terms that both parties agreed to etc. They will try to make you successful, simply they are successful. I have friends doing that and they are happy. Yes, you will run mostly broker freight, but on average you will get on dry van $1,75-$2,00 a mile depending on the week. In my opinion, it is way better then 90cpm +fuel... Big companies make money on your truck not you... I am not advertising here or anything like that, but yes, being successful on a L/P is possible! But not everywhere...

 

What about l/p a truck from a buy here pay here type lot or a lot that all u really need is about $1.5k-3k down and you make monthly payments??