Buyer Beware of the "Lease Purchase" Companies

I always say "show us your golden fleece" --> Post it on this forum so others can see it and figure out what is good/bad/fair.

Enough drivers have been fleeced that they know what to look for. Fleece me once -shame on you, fleece me twice -shame on me.

 

Corporate greed is part of it, but I think that the whole lease purchase setup is just financially inefficient and the driver bears the brunt of expense.

Think about it, the manufacturer or previous owner (if it's a used truck), the dealer and the trucking company are all making a profit off of the transaction. Where is that profit coming from? The driver. If you can't afford a truck from the dealer on your own, or you can't tolerate the risk, you need to be a company driver. Period. End of story.

 

A truer statement has never been said. If you have bad credit, are behind on your credit cards, or car payment, and the truck dealer won't talk to you because of it, you don't need to be an O/O. Simple as that.

 

Can't agree more. Whatever you do don't fleece from the same company you pull freight for.

 

no kidding, a JB Hunt recruiter called me this morning wanting me to apply for JB's wonderful Award winning Lease Purchase Program: 57% of load revenue was the payout with fuel surcharge. It came out to 1.15 per mile which we all know from JB speak mean 1.15 on the high while loaded and nothing on the deadhead. He said JB drivers were geting 2000 miles per week which means 1800 in JB speak: Here's a breakdown of charges to the driver from the recruiter:

Mait account 0.10 per mile
Tire account 0.05 per mile
Escrow 0.10 per mile
Fuel 0.40 per mile based on 6.5 MPG

That left by his own numbers 50 cents per mile for 2000 mile a week with a 250-400 a WEEK payment. When I explained to him if you factored the 16% of the settlemet you have to pay in social security, the miles in excess of paid miles 5-10%, and the perdeim/writeoff on your taxes for driving the truck you only had 350-400 left over he said so take it or leave it.....not much of a biz sounds more like share cropping to me. Lease Purchase from in house companies are all rip off. They end up having higher profit margin on those trucks and sale a 25,000 truck for over 100 thousand with balloon payments.

 

actually i have a good friend doing the jb lease and your numbers arent what his lease is.he is making pretty decent money at it too.according to his accountant he is averaging 1.23 a mile.all miles.not just loaded.but it may be different now.he has had his lease about a year.reason i know his numbers is i have been talking to him about it because of how happy he is and the money he is making.

 

i bet that's GROSS

 

I have some stuff going with O&S out of springfield myself and I'm tellin ya they will rip the driver off....I am going to wait until my lawyer lets me know just what I can and can not say but keep watching..when he gets it straight I'll let you know the real deal with O&S trucking. The lease purchase is crap they pick a few guys to run well and do well just so they have someone for you to talk to that will tell you oh life is good and I'm making good money blah blah blah..It is all #########. Anybody that does a l/p and thinks 500 to 800 a week is good money is just stupid..hell you should stick to being a company driver still make the same money but have ins. and ben.