Lease Purchase Programs?

I know several drivers that are very successful with the lease program through Greatwide. Greatwide let them pick out their own truck anywhere they wanted to. The successful ones got theirs from trade-in lots of new truck dealerships; Freightliner/Volvo/International mostly. Some of those guys been there 10 years now.

 

LoL at somebody who cant operate a simple household budget, cut some fat - of which I am sure there is plenty, and gleefully ride off into a LP plan making a thousand a week. It's people like you who willingly put up with such low standards that keep the whole industry down. Prices go up, up, up yet there will always be fools willing to work for less less, less.

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Lease purchase for how much a mile?

A buck forty ish....

Listen, if you can't be consistently in the range of $1.90, to you, not the gross but you're cut, if you can't be there....

Then taking on the costs of business is nothing but foolishness....

Ask yourself this question,

"why are companies so keen on leasing trucks?"

And then ask yourself why your fellow truckers who are owner operators, who do finance their own equipment with places like GE Capital, and who do actually secure their own freight off of load boards...

1. Aren't doing the lease purchase thing

and..

2. telling you it's a really bad idea.

is it because...

A) We're jealous of you, wish we were able to have your opportunity, or afraid of you competing with us...

or is it...

B) We know what you're getting yourselves into and are doing our best to help you to not make a really big mistake.....

 

Have you ever leased? And explain the leasers that have succeeded.

 

Those trucker "Lease Owner Operator" books, you know the ones in the racks at the truckstops...

The ones by the front door going in, or over by the men's room....

The ones that have all you guys thinking that the industry standard that O/O's make is a $1 a mile with fuel surcharge...

They're a joke.

My target is $2 a mile, to me, on all miles.

Anything less and I would be a failure, in terms of business success.

Now, I know some of you are thinking that a lease purchase deal would be a jump start kind of thing, a bridge to get you from company driver to full owner op, but the reality is this...

At the end of your lease you will have a piece of equipment that is worn out and worthless, and you still have no real business experience in securing your own freight.

That's why the cycle of getting another lease when the old one is done is going on...

I'm just trying to be real with you.

Zero down, bad credit no problem leasing proposals are predatory....

The only ones making money are the people who get you to do it.

They're laughing all the way to the bank.

They've inverted the situation and have you making roughly the same as you would as a company driver while assuming all of the financial responsibilities of operating the truck, and they've figured out a way to keep you on the road working as you won't be able to afford any home time..

They're pretty sharp business people, these lease purchase trucking companies.

I'll give them that.

 

Succeeded at what??

Finishing a lease and ending up making what they would have anyway as a company driver with experience, maybe??

And signing another lease, getting right back into the same boat that they just got out of?

When I left as a company driver I was making .46 a mile with health benefits and a paid vacation...

Now ask yourself this, would my financial situation have improved if I had gone from that to a lease purchase deal??

Here's a clue...

I'm just now to the point where I've acquired enough business savvy to be able to afford health care benefits on my own...

Yeah, I almost failed as an owner op, and that's because I didn't realize just how much was involved, how hard you would have to work, and how sharp you would have to be in areas like negotiation...

I'm being real with you.

If you saw me today you'd think I was the guy who's got it all figured out, big beautiful truck, owner op spec'd large car, 08 Western Star with lots of extras and goodies....

But I almost didn't make it.

Because of the scumbags in business who have you thinking that a $1.40 a mile is good money, and that they move loads all the time for this rate...

If you're dead set on leasing than sign it on the line and pay no attention to me.

Experience is the best teacher, but experience is a hard, unforgiving master...

Go ahead, jump in with no money down...

Let me know how that works out for you.

 

66% of income earners make less than $41K gross ... so yeah, for a lot of people in this country, if you can go on the road for 44 weeks a year and make 1K a week, you're going to be doing better than most.

Yep, it sucks. It's a lot of hard work and it's a miserable way to make a living. But it's honest and you can take certain amount of pride in it.

But you - as well as most O/Os here - would impugn and degrade them their efforts, because they haven't reached your level of success.

 

Who are you to make the determination of sucess?

You're not being real. You're being arrogant and judgemental.

The way see leases. You could work as company driver, make 35cpm, be gone 3-4 weeks and make $500-$800 net.
Or you can test your business skills, work the same 3-4 weeks, drive the same truck, and possibly make $1200 or so.
What's to lose? Most leases are no penalty/fees, credit free walk away leases. If it doesn't work out, turn in the truck and move on. But if it does work out, well your making more money than you would be as a company driver running the same loads, same truck and same schedule.
Now, there are crappy lease programs out there.
Buy many are getting better.
JCT now has the truck payments set to a small minimum payment of $150, and charge 21cpm for the rest of the payment. So when the driver takes off, the hole truck payment isn't being applied. That sounds the company trying to help the leaser, not take advantage of them.

Prime, pays 72% of the linehaul. They have drivers averaging $1.65 to $1.75 a mile.
Yes the fixed cost a week are around $1300 plus fuel. Even with that higher cost, I'm reading of drivers making $1200 or so after all cost including hold back some for taxes.
Prime also specs their tractors to help the leaser achieve optimal fuel mileage. Again, I'm reading of Prime drivers getting 8 to 9mpg. These trucks are covered by warranties. So big costly issues are usually covered by the warranties.
Again not all are perfect, but I'm seing many get better.


Take a look at this thread. This is a Prime leaser that was successful.

http://www.thetruckersreport.com/truckingindustryforum/showthread.php?t=182163

 

A huge percentage of company drivers make over 41,000 a year, so your factoid means nothing when debating lease purchase. Any company driver that isn't making $50k with a year's experience is short changing themselves. I used to be an independent recruiter for a bunch of the megas. I can honestly tell you that any company sponsored l/p deal is structured to make the company more money than having that same truck and driver classified as a company driver, which means you make less net than you would as a co. driver.
If you want to do a l/p deal, at least use a place like Lone Mountain so you can lease the truck anywhere. That will increase your odds of success dramatically.
As far as degrading drivers who haven't achieved our success??? Calling the scams out for what they are isn't degrading anyone. In 2001, I bought a $4,000 10 year old cabover and was netting $1700 a week before taxes with one year trucking experience. I was also off every weekend and drove by the house almost every day. I want everyone in this industry to succeed as that will only drive rates up and costs down. I strongly recommend every prospective o/o to take online business courses including micro/macro economics and prepare a detailed business plan BEFORE committing to anything. We'd be glad to pick your plan apart in the o/o section, which is a good thing as a free lesson based on others $$ experience$$ is saved money.