Are lease purchase deals coming to an end?

Drivers continue to sign up for them so they will continue , there as bad as time shares.

 

Time Shares, perfect comparison

 

i hope so....one never really owns the equipment, the company has the lessee by the "short hairs", and with the ruling on 1099 to W2 workers defined as such.

wanna truck and wanna be your own REAL boss..??

then get a business loan, and get your own dang equipment, and be on your own.

 

I agree with this. Then I got to thinking and googled this:
what percentage of lease purchase truck drivers actually pay off their truck

And you know what I got? Nothing. Na Da. Not a thing. just ads for companies offering lease purchase options... Apparently no one has done a study on the actual numbers.

Makes me wonder. I know SOME people have done it SOMETIME, but what are the actual numbers? I didnt have a very high percentage in mind before I googled it, and even smaller number now...

 

when i first got into trucking, i checked into lease/purchase plans with many companies, via snail-mail, as the internet was not available, maybe cuz Al Gore hadn't "invented" yet...so i got a LOT of packages (large yellow envelopes) full of information...Prime actually gave me the best package, detailing the final numbers after ALL deductions, where my take home pay, was LESS than my yearly salary as a driver back then.

then there were a companies named Greenfield, and Arctic Express, that had similar packages, and other companies i cannot even recall, and i do believe they are ALL out of business by now.

in the end after reading thru all the rhetoric, i "saw" no actual way to win and own that "new" truck i would have leased.

but how many wannabe owner-ops actually READ everything..??

YES, "some" have paid off thier lease deal, and went on to lease another truck, and make a good living.....but what are the actual odds of 100% of the people, making it..>?????

 

If you find a decent company and stick to it, you can make it work. People’s lives change, family member dies, they get sick, plans change and they discontinue the leasing program, is that a failure of the program? Nope. The programs are typically few years to 6 yrs and a lot can happen. People go home for too long and end up in a hole that takes a month to get out and they give up. Not all have enough brain cells to be doing LP. I had some good and some bad experiences and still doing it. But loosing this opportunity due to rule making is insane.

 

I don't hate the idea of LP. I don't think it's a smart long term move, but there are drivers that make it work successfully. What I hate is that the majority are targeted at new drivers. New drivers are trying to master simple things like managing HOS, trip planning, etc. There's no way they're ready to tackle (sort of) owning and operating a truck at the same time. Especially with the odds already stacked against them.

Imagine still trying to figure out how to edit logs, struggling to back into a spot, and then mistakenly agreeing to take a load to Denver at 1.90/MI, only receiving 70%, and then finding out about outbound load rates from CO. Driver should be doing research, but they've been misled to think the company is out for their success and don't realize they're not until they're too far in a hole.

Something like SFI where people are actually leasing a truck and doing their own thing with it don't seem as terrible.

 

Mathematically they have it set up in a collective algorithm all in alignment with the lease terms of 24 or 36 months, the governed truck speed & the drivers 70hr weekly elogs - regardless - they control production speed weekly. When the warrantees blow out that’s when they’re ready to actually sell the truck and in fact, hope the driver leaves the “walkway lease” and goes somewhere else. Typically another contributor to the nearly 300% annual industry wide turnover rate or corny remarks like “driver only stays in the seat for 7 months” complaining carriers do.. “we can’t find people to stay” they say. Carriers complaining is as fake as the driver shortage BS publicity. they can’t keep people because they are thieves.

 

From what ive seen the smart move is work your ### off for 2 yrs as company driver pinch pennies build capitol lay a 50 60 70k down payment on the rig u want . Maybe im old fashioned..