Best company for lease purchase

That is what many of us are trying to do. We inform the people who ask about lease purchase deals of all the potential pitfalls but it seems to fall on deaf ears.

It is the mega carriers that hype these programs in the first place. It is the mega carriers that reap the rewards.

Many veteran drivers do our best to inform about the payment structures, lack of benefits, lack of equity, and lower than normal compensation rates (when compared to actual owner ops) yet this information is dismissed routinely.

Here are the facts; A lease operator will bust his/her tail for many years in an attempt to get the title to a truck. They will forego benefits, accept less money for the work they perform, and spend more time on the road than most company drivers.

Once you take a hard look at the numbers and compare the amount of time required to run a business to the pay, benefits, hometime, and matching taxes (SS/and medicare) a company driver receives you will see the inequity.

A mega carrier would rather hire a lease operator to do a job rather than a company driver because there is more PROFIT in hiring a lease operator.
No benefits. No taxes. No workers comp. A lower rate per mile (they routinely take a "cut" of the money off the top for administrative fees.)'
The lease operator makes the truck payments (plus interest) on a WEEKLY basis. Pays for the fuel that goes in the truck, Pays for maintenance, has to pay for qualcomm fees, and the list could go on based on the company. Escrows, maintenance accounts, trailer rental fees, road use taxes, fuel taxes, plates/permits, bobtail insurance etc. are other examples of fees that a carrier may charge the lease operator.

In some cases the vehicle insurance underwritten by the carrier is actually inflated above market costs.


How can company drivers expect wages and benefits to improve across the industry when lease operators are willing to work for less???

 

jlkklj777. You just described the lease to own programs that have given all lease to own programs a bad name. There are a few good ones I believe. Being an Owner Operator is more than a financial decision. It's wanting to be your own boss and a businessman. Putting your future in your hands not someone else's. It's hard work and sacrifice but the end result can be quite rewarding. Being a company driver comes with security and less risk but less independence and possibility of greater rewards.

 

There is a big difference between an owner operator who owns his truck outright (or has financed a truck through a bank and his name is on the title), and a lease program through a carrier.

The lease program through a carrier is what I was referring to. When you rely upon the same company that leased the truck to you to also provide the loads then you are NOT a true owner operator. Your'e one step above a company driver EXCEPT you get NONE of the benefits. In essence it is closer to indentured servitude than being in business for yourself.

If you believe otherwise then consider this; What happens to that truck if you decide to park it for a month and havent created any revenue for the company??? Answer; "the truck will be repossessed and any money you did have in a maintenance fund or escrow account will be forfeit." The worst thing that happens to a company driver is he loses a job.

While some carriers may "offer" a choice of loads to the lease operator it does not permit the lease operator to pull for any other companies.

That is the main problem with lease programs through a carrier. When loads become scarce the lease operator is stuck. No revenue for his business yet he still has expenses he must meet. The lease company will always take the money they are due BEFORE the driver collects a penny. In many cases that means the driver will wind up in the hole and actually owe money to the company. Got an escrow account with that company? They will drain that account too to collect their money.

It is pretty sad when Lease drivers have to work 3 to 4 days for free (to cover the business expenses) before he even begins to earn money for himself. Want to go home for a day or two? ONLY IF YOU CAN AFFORD IT!

I have no problem with a guy becoming an owner operator. There are a couple of ways to do that but it takes years of savings, sacrafice, and hard work. Too many drivers today want that new truck NOW. They have very little experience and many dont realize they are supposed to set aside money for taxes and pay those quarterly.

The sooner drivers realize the lease purchase game is stacked against them and stop playing, the sooner they can start improving this industry as a whole. It shouldn't be driver vs driver out here. It should be drivers standing together against low wages, poor equipment, and abusive treatment (not getting paid for time lost at customers, waiting on loads, etc IS ABUSE).

It will take time, communication, and understanding to make a difference in this industry.

 

every once in a while my brain starts lingering about leasing or O/O. Then I bash my head against the wall to bring my sanity back. The problem I also see with drivers wanting to either or is that like me, they need some classes on business ethics. How to be a business operator for trucking. I know there are companies out there that will help with this and online classes ie Fikes truck lines(i believe) or Tim Bradey from Roaddog trucking news with Evan Lockridge. I have looked at Tim's mode and first off, I have debt. So until then my so called dream has to be squashed. Be safe in what ever you do.

 

Explain to me, what is the difference in leasing a truck to eventually purchase, and buying a restaurant, or being a lawyer, and leasing your business space. I know my doctor is leasing his office space, and he is doing quite well.
You people are so prejudiced, I honestly wonder how you get along with your neighbors. How can you criticize something you have never tried. The first year I did an L/P I netted $120,000. That is what I took home, put in the bank, after ALL EXPENSES.

 

A truck depreciates in value rather quickly compared to an office building. Real estate tends to appreciate in value over time.

Trucks break down and need immediate repair to continue making money. A building that needs repair can still be utilized and chances are you will have a regular contractor to deal with whereas with that truck your at the mercy of the local repair shop/tow service.

No, LMB we are not prejudiced. WE are trying to educate and inform. Lets set the record straight about your experience as a lease operator (I believe you DIDNT buy the truck you had either).

To be perfectly candid you did that as a TEAM operation with your wife. Once your wife took ill you went back to being a company driver for Schneider with a dedicated route. Feel free to correct me if I am wrong.

By the way running as a TEAM opeation company teams can easily earn over $120,000. Especially when it is a husband/wife, they have all the benefits without any of the expenses such as truck payment, maintenance, fuel, bobtail insurance, etc.

Then of course as a lease operator you had the privelage of paying taxes 13.3% (15.3% - 2% due to the 2010 Tax Relief ACT) and wokers comp insurance.

Had you and the wife ran as a company team you would have only been hit for half the SS/medicare tax, had no workers comp to pay, and alot less stress overall. You would have had access to group medical insurance at a discount through the carrier as well.

 

Well you are wrong, I am now in a lease purchase, and running for Sunco. I average take home NET after ALL Expenses, $1400.00 a week, and I am home EVERY weekend

 

Good for you and Good Luck (your'e going to need it).

Us company drivers will continue with our measly wages and benefits week in and week out while you bust your butt for the next several years in an attempt to buy that truck.

Be sure to include your travels on the forum so others can learn at your knee.

 

Hello Hittman. How has the leasing been for you? Did you continue with it after 3 months? What is your net profit each month?

 

Absolutely right. But I myself will rather work on % as a lease operator.