Lease Purchase vs financing through a bank?

Use search feature on the forum. these questions have been covered in numerous posts.

 

Lease purchase: You "buy" the truck from the same people that provide you work. You may only pull loads for them. If they are short on work, it doesn't matter, you still must pay the note every week/month, somehow.

Finance through your own bank: You still have to make payments, but can seek out work anywhere you choose. Don't get along with the carrier? Take your unit to another carrier and start making money there.

Need I say more?

 

One is your truck to operate as you choose.

One is not your truck and are limited to a single company to dictate how you operate.

Either way financing is a big risk.

Hurst

 

There are places you can lease purchase and are not stuck with one company, Lone Mountain for example, take your truck anywhere you want, quality is another the have a list of approved carriers, not just one

 

The answer lies in who's carrying the risk associated with the drivers qualifications and abilities to make business decisions. LP programs don't perform credit checks and lease trucks to drivers who have minimal experience because the company will make the decisions about operating, maintenance and, most of all, fronting the money to run the truck. Most people who think they "have" to LP a truck are credit challenged or short on experience and have little to no money to operate in the first place.....

BUT...LP operating is a great way for someone to learn how to eventually become an O/O because LP operators get to see the numbers and make decisions that impacts their bottom lines. Before I went totally out on my own (own authority) I used to be a LP driver. I learned quick and eventually became successful at operating a trucking business. Still going strong 10 years later (with the exception of operating under my own MC numbers) I choose to lease on to a company because the amount of $$ I'm willing to give up per load allows me to drive and not worry about chasing money, IFTA, insurance rate changes..etc.

 

Yes. I used to operate that schedule when I used to operate under my own MC authority. I left CO on Sunday night and returned Thursday, sat the weekend and loaded out Sunday to Los Angeles...one big loop. Best money (outside the oil field) I ever made in trucking.

 

NO...I went from Company driver to LP to O/O and I'm still an O/O. That orange house is my current truck.