Do not do a lease purchase.....ever!!!

If this is directed towards me then I dont have a beef... based on past threads Schneider Choice guys said they get what it shows on the board & dont have to do no math, other poster said they get 67% of the load revenue. Maybe it's already broke down on the board, that's all I'm asking.

 

And where are they getting there numbers? Because if it's from the IRS/Tax Man then that's not a fair assessment. But I tell you like this, if an O/O is only netting 35K a year running 11 months out of a year, then not only is he not a good business man but he's a moron. Harsh truth

 

The point is being missed. If that's O/O national average, then some of these L/P deals are not so bag. I'm on track to make much more plus paying on truck.

 

Ummm... yeah I'm speechless

 

That would be a first!

 

Mr MOGLAR... you've been busily posting your opinions concerning leases and lease-purchase situations for some time now, trolling certain carriers forums, and generally implying that many folks are fools or at worst, congenital idiots. What exactly are your credentials that makes you an expert on the subject of trucking business?

Do you hold a degree?

Have you ever owned a business trucking related or otherwise?

Have you ever logged a mile as an owner-operator or an independent contractor?

Have you ever owned a truck?

Just curious...

 

Moglar,

My truck is lease purchase. I am currently on a three year lease. It is a walk-away lease, so I can upgrade to a newer truck at the conclusion of the lease or pay off this lease, or get the truck financed for the remainder of the payoff balance. As a lease purchase, I can, in fact, take the lease purchase truck to any carrier I wish so long as the prospective carrier meets Schneider Finance's insurance requirements. I think that one reason this is done is to cover the company's ###. So long as Schneider and Schneider Finance are considered two separate entities, I assume they must act as two separate entities. Thus, Schneider Finance cannot legally force you to work at Schneider National without there being legal complexities involved. Of course, I am merely speculating...Yet, I can assure you that I can take the truck elsewhere. I have talked to one driver that did. I saw him at a Love's truck stop near Dallas, TX and noticed the Schneider Finance decal and struck up a conversation. I have also spoken with my Schneider Finance representative and confirmed this. I even got him to send over the documents so that I could find out what all I needed to do or investigate before making the switch. Here is the conversation from his emailed response:

"·Account needs to be current plus minimum three weeks of payments above that to cover transitioning weeks w/o payo You do NOT skip a beat to go on to another carrier with your truck payment.
· Please be sure to give a 2 week notice prior to leaving present carrier in case you would ever want to come back.
· Letter of Intent from Carrier that includes:
o Full carrier name
o Motor carrier number
o Carrier’s physical address
o Carrier’s telephone number
o Carrier’s fax number
o Contact name at carrier
· Carrier must meet SFI’s insurance requirements (attached).
· I will need the mileage on your truck.
· I would need to know when orientation would start; and when the first settlement will start. (I will need this information after I approve the transfer, and before I can print out the transfer packet for you to sign.) Your contract states in section 6 under USE that you can lease onto another carrier “as approved by Lessor”.
· A form called Automated Clearing House needs to be filled out, which authorizes SFI to take automatic weekly payments from your checking account, needs to be returned to me signed along with a voided check.
o The payments will automatically come from your checking account. If the payment is short and the check bounces, SFI charges $35.00 for NSF. (your bank most likely will charge a fee as well)
· A form called Certificate of Exemption needs to be signed and returned to me.

Insurance Requirements:
· I will need to have a certificate for the trip (or temporary) insurance. The insurance company will need to have a copy of the letter of intent to get you this certificate.
· I will need to have a certificate for the PD insurance.
o Two options to get this insurance if the new carrier does not provide it are:
1. TSA department at True North 877-968-8785 (For your convenience, I attached a copy of the TSA application.) or call:
2. Ooida-800-715-9369
o After you get to the carrier, I will need to get the NTL insurance certificate. To get this certificate see if your carrier offers the insurance, if not you could call the two options mentioned previously. The insurance company will need to receive a signed copy of the lease agreement. (If I don’t get this certificate within the first week of the transfer, then you will be in default of your contract). It is up to you to get this information to me. You are the go between the new carrier and myself.

After all of the above requirements are met, then I can send the new carrier the information that they need. Let me know if you have any questions. Thanks!"