The WORST Lease Purchase Agreement I've Ever Seen

Excellent analysis. I really only have 2 quick points to add. First of all, according to the Federal Truth in Leasing Regulations, NO MOTOR CARRIER has the right to charge any installation or removal fee or any usage fee concerning any auxiliary equipment required by the motor carrier. In this case, I noticed a fee for Qualcomm rental. If Swift or anyone else requires Qualcomm AND charges for it, they are in violation of Federal Regulations.

Secondly, if anyone is determined to become an owner-operator, it would be best if that individual save up the money to buy a decent used truck rather than go into debt. Although the ability to make a decent living as a business owner in this industry has diminished, it is still possible, particularly if you have no truck payment. This also gives you leverage to stand up for your rights, which is why you want to be an owner-operator in the first place, yes?

 

Knighton5 - are you willing to share what company has the lease that you refer to? We are good at knocking the bad companies but are slow to talk up the good ones. Just askin' cause I am working on going down the O/O road, but want to know as much as I can before doing so. thanks!

 

Deepstroke,
Sorry I wasn't able to answer you sooner, but it has been a little busy this week and I JUST got home. To answer your question, I know I have a copy of the Truth in Leasing regulations that govern any contracts between owner-operators and motor carriers. I'll try to find it on the internet, though, so I can send you a link.

In the meantime, following is a link to an article written by Land Line magazine concerning a lawsuit already against Swift for violations of the Truth in Leasing regulations brought by Owner-Operator Independent Drivers Association:

Oops, guess I can't provide a link yet because I haven't posted at least 20 messages. If you would like to get the information on the lawsuit against Swift, go to the web page for Owner-Operator Independent Driver Association (OOIDA), then click on the link for lawsuits on the left side of their home page.

 

Deepstroke,
Me again. I found the Truth-in-Leasing regulations faster than I thought I would This can also be found on the web page for Owner-Operator-Independent Driver Association. On the left side of their home page (just below legal action link for the information on the Swift lawsuit, click on the link for regulatory documents, then under "Available Documents", click on DOT Leasing regulations. You will need Adobe Acrobat Reader in order to read this.

Once you have the document open, go to page 5 of 8, Subpart B, 376.12 Written Lease Regulations, paragraph (i), Products, equipment or service from authorized carrier.

There you can see the regulations clearly state no motor carrier can require any owner-operator lease, rent or purchase any equipment as a condition of their lease. Hope this helps.

 

Deepstroke,
Me again. I found the Truth-in-Leasing regulations faster than I thought I would This can also be found on the web page for Owner-Operator-Independent Driver Association. On the left side of their home page (just below legal action link for the information on the Swift lawsuit, click on the link for regulatory documents, then under "Available Documents", click on DOT Leasing regulations. You will need Adobe Acrobat Reader in order to read this.

Once you have the document open, go to page 5 of 8, Sub-part B, 376.12 Written Lease Regulations, paragraph (i), Products, equipment or service from authorized carrier.

There you can see the regulations clearly state no motor carrier can require any owner-operator to purchase, lease or rent any equipment as a condition of their lease. Hope this helps.

 

There are some companies out there where you can succeed. For the most part I would agree with what has been stated so far. I have been what I would consider successful in a lease purchase process.
However having been in this business for a long time and working in management as well as driving I do see this lease purchase from both sides of the fence. The ability to make it on per mile in a van operation I think is limited. If you can do flatbed and get a % of rev contract it makes a big difference.
For what I would consider an average year I took 30 days straight off, took it at the slowest time of the year. Pretty much worked the rest of the year passed thru home enough for me. I was able to gross 156000 and my earnings before taxes were 55000. For me That was good enough because I was able to go where I wanted, pay my bills and go abroad for a month.
Now the company I worked for which I will omit here, so that I will not have any accusations of a hidden agenda is what I consider top notch. (I no longer work with them or drive now either) But I have seen and looked into another company who I believe offers an even better package with the restriction that if they can't keep you rollin the best package means nothing. So with that said I think that if you plan well and really work it as a professional and realize that because you might see 2500 dollar paydays don't think that you should go out and buy a bigger house a f-150 etc you can make it.
But for the most part I agree that it is a bad deal.

 

why don.t we just shut em down, would that make sense

 

I am not in any way promoting Swift's lease purchase program, but I will say that these figures are slightly flawed.

He hasn't computed in Fuel surcharge money, nor has he made any of the standard deductions which will directly affect the amount he will have to pay in taxes (i.e. per diem, cell phone, clothing, toiletries, etc. etc.)

I didn't start with a Swift's lease program, but I did go through Schneider Finance and it was one of the best decisions I have ever made. Not for the increase in pay, And it was a great increase in pay, but for the freedom of choice that being an O/O provided.

I applaud him for his research of the lease purchase program, and honestly at .815 per loaded mile, he wouldn't have made a whole lot of money.

"but my bet is they will pocket at least $30,000 at your expense"

Of course they will, you didn't think they run these programs as a not for profit agency did you?

 

Leasing a truck from the company you are driving for is like buying drugs from a uniformed cop. You can get busted at any time.