Why do you lease to a carrier?

I lease to TMC (i own my truck and dont lease the truck)

I make 73% of the load pluss 100% Fuel surcharge.

That missing 27% pays for cargo insurance, permits, plates, Titleing, finding customers/freght, chasing after customers to pay (i get paid regardless of customer's payment), trailer and maintenance on it, securment equipment.

Cargo insurance alone cost around 5-10% of that number. Permits cost another few %. I dont want to waste my time finding loads, dealing with brokers, calling customers that dont pay. I have a full time office guy that gets me the freght i want in the right direction. He deals with customers for me. I have a a dedicated safety team, Log compliance team, Drug testing, etc. That 27% pay for all of it. To me, 27% is a pretty low cost for them to take care of almost all the paperwork hassle side of my business.

Would i have more flexibility on my own? Probably, but my FM gives me a lot fo options and flexibility. On y own I MAY make a few bucks more, but it would be a lot of extra work for those few bucks.

 

I lease "my truck" to mercer.
100% owner ops
Perks.. too many to list

 

What Richter said plus get to us shop.

 

I got a feeling you already know the answer(s) to this question.

 

All of the above.

Less headaches for me,.. less up front money to get started,.. being able to network with brokers and dedicated clients so when/if I do break out on my own I'm making strategic business contacts,.. the list goes on.

I have mad respect for the guys doing it all on their own. The longer I stay leased on the more I cringe at the thought of having to do the rest by myself. Maybe I'm just lazy,.. but its working out well for me.

Hurst

 

Not a fan of leasing. I guess if you owned your equipment it might be a little better b/c you would be able to walk and you would still have your truck and trailer(s). But a lease purchase is an absolute horrible idea for the driver. I know guys on here will swear by it, but lease purchases would not be advertised so much if it did not benefit the company. Who knows maybe it's awesome and they really want to make drivers a lot of money and only keep a little for themselves. Actually come to think of it, the perks of leasing are too long to list.

 

Pretty much this, and I self dispatch an use their shop at a discount and am very happy with the work.

 

The OP is talking about leasing on to a carrier but owning the truck running under their authority. Not a lease purchase

 

Right, what did you think we were talking about?