Lease/Purchase

No.

 

No. Especially if you're just getting into a new career in trucking. Essentially your renting a job, assuming industry slow-down liabilities and associated financial risks (there will be slow months), earn little if any equity for your financial risks, no benefits like employees get, and making it cheaper for the carrier to operate, versus a company driver in a company truck.

There are too many company driver positions that pay as well with no headaches, worries, or risk of financial bankruptcy when the truck is crashed or needs major repairs.

 

NO

 

It's the road to making less than a company driver and a way carriers sell off their poorly maintained used trucks for a lot more than they could get trading it in or selling in the open market,,99% of all lease purchase deals are good for the company but very bad for the driver, carriers push lease purchase deals to rookie drivers with little trucking experience,,even with years of trucking exoerience it is hard to make it owning or leasing a truck,,The ATA's survey of member carrier ( Big fleets) reports that the average cost to own and operate a truck is $1.68 per mile..If you are not making $1.68 per miles or more for all miles loaded and empty you are loosing money,,,DON"T DO IT!

 

Generally no. Read the terms and contract. Do the math based on everything not going according to plan.
If you have bad credit then don't bother, if you get into a jam then you're screwed.
If you have good credit, then go get a truck from a dealer or third party leasing co, at least then if things don't work out with carrier A you are free to move to carrier B.

 

Maybe if you're a Platnium member

of Aaron Rents........

 

The best thing to do if you have good credit is to buy your own truck. If you do not have the credit, and still want to proceed with a Lease then you need to do your homework. You need to make sure that you understand exactly what your overheads are going to be. You need to make sure the company that is offering the lease can deliver on their promise to you as well. The problem with most lease purchase options is that the lease driver is forced to run at a smaller rate per mile than what the loads really pay. We have a lease program, and our drivers all run on percentage, see the rate sheets from the shippers to us, can walk away from the lease at anytime providing they have not destroyed the equipment. Even then that is what we have insurance for. It is very hard to make it on $1.38 per mile as most of the packages out there are offering. Our guys are averaging $1.85 - $2.05 per mile all miles. They only run about 1800 miles a week and still clear a good settlement after their overheads. Just realize that you are indeed renting to own the equipment. This is necessarily the best way to go, but if done with the right company it is a way to learn how to become an owner operator, otherwise it is really better to remain a company driver. Don't fall for the hype that you will make more money then the company driver. The only reason guys do it with us is because they are truly wanting to learn how to become a successful owner operator. We advise they rent the equipment from us, save their money up and then buy their own. Hope that helps

 

First and foremost, I do believe the o/p is a new driver, or soon to be a new driver. If that should be the case, then I think it's best for him (or her) to just get a job and learn how to be a driver with no complications just yet. In as little as 6 months the newbie may not even be driving any more.

 

Agreed, we only allow individuals that have at least two years or more experience to enter into the program. They need to have at least a basic understanding of what crap they will put up with in the industry as a whole. By the time they have two years in they should have a handle as to which way they want to go. We are here to educate our operators not babysit them.