Best Leasing programs?

Personally, I've not seen a leasing program that's worth a darn.

 

Why do you want to lease a truck now? Have you not been following the news lately I mean come on fuel prices are rising daily. And all the fuel surcharge programs I have seen don't even try to keep up. And thats just the start. There are sooooo many crooked outfits that will show you numbers that make you think that the money just pours in and the only one's who fail are the lazy driver's. Please don't fall for that. Work these numbers out and see if you like them. .90 cpm base rate .49 cpm fuel surcharge 1.39 sounds real good but tack in 400 a week payment, 300 a week maintenance fund, oh and don't forget the escrow acct's and quallcomm, fuel taxes, insurance thats 150 oh and you're going to need to eat too through another 100 a week in there just to be safe. These are figures with an honest company too, the crooked ones have a bunch of other little fee's too. Now figure your fuel at 6 mpg at 4.17 per gallon. Now the kicker do that on 1800 miles per week avg. Yep not much left for a paycheck is there, oh and don't go home 'cause that really screws up a week and then you spend 3 weeks just trying to get out of the hole. If times were good and freight was running strong I would say you have a chance but with the way things are now, you would have to have everyday be perfect, and this ain't a perfect business. Hold off on the lease and just drive for someone, you'll wind up with more money in your pocket.

 

I have spoken with several Prime drivers over the past few months and each one I have talked to has said they are taking home (after all expenses) in the neighborhood of $1,300 to $1,800 per week. The thing to remember about Prime is that it is a straight lease. They are basically renting you an "office" from which to run your business. Some talk about the high payment. Price store fronts in your community for rent for operating a business and you will see that their payments are a bargain. Also, the lease payment is a tax-deductible business expense. Since you pay the reefer fuel and the fuel used in the APU, you can also claim the Fuel Tax Credit for that fuel on your taxes at the end of the year. They also provide a business service that will take care of all your tax filings throughout the year, if you choose to use them. The price is fairly cheap for what all they do.

Biggest thing is to make sure you understand that you are operating a business and have to take care of all the expenses related to running a business. Many people fail with Prime, CRE, or the many other lease programs because they treat it as though they are a company driver and lose their shirts. Prime will train you on the business end. You can also visit their website and listen to their monthly safety meeting and hear how they work to help you be a successful business person. They are also adding more tools all the time to help people do well and operate safely.

I am writing all this as I have been extensively researching Prime as a possible company to drive for myself. Best of luck to you.

 

Companies like Prime should bring their candidates to a 2-week orientation, give 'em a class on being a successful O/O, and then give 'em an exam that tests their business savvy. Those who pass get to move on. Those that fail get sent either back home or into the company-driver ranks.

 

Really, every company should test whether people are qualified to be O/O or L/O. I have said before that trucking is probably the one industry where it is so easy for someone to become a business owner. With the "grass as greener" mentality that leads to people jumping from one company to another, many see O/O as the way to go. "I can be my own boss." The problem is many are not cut out for that. No negativity towards them but some are just not wired to be a business owner. That is the main reason I have done the extensive amount research and preparation I have done. I have been self-employed in other areas but I want to make sure I succeed at this, if I do it.

I have not only researched companies but I have made myself available to learn everything I can about the business side of trucking before making the move. Even with all that, there is a little fear there about making it. Education is one thing but practical, hands-on experience is another. My hope, and plan, is to go in with as much knowledge as possible to help me be prepared for the unexpected.

 

Well, Paw, differences aside, I hope you do well out there. I hope all the fleece drivers do well, but you're right--most aren't cut from the business cutter.

 

Ok well I work for Schneider and I myself am leary of lease programs overall.

However, I've heard quite a bunch of good reviews of their lease program. While I haven't gone over it in detail (or been able to see a copy of their lease agreement), I know of a guy who is very critical of lease programs who says Schneider seems to be very well written for the driver.

 

NEVER LEASE. NEVER LEASE PURCHASE. Save your money and buy a truck yourself directly from the source NOT through a company.

This way if the company screws you on pay or miles you have the option of leasing YOUR truck on somewhere else.

If I were to go this route I would buy my own plates and permits as well so if I decide to leave a company I can legally drive my truck away using MY PLATES rather than having to sit around and wait for another company to agree to let me lease on and send me their plates to use.

I believe the vast majority of drivers that try a lease purchase program do indeed fail.

The ones that succeed are running as hard as they possibly can with little to no benefits and not spending much time off at home. Some even live in the truck or take their spouse with them and run team to make a go of it.

Solos that expect to run legal and be home regularly will soon be out of business and probably out of a home as well when they cannot afford to pay their mortgage or rent.

Spend some time reading other threads about lease programs and owner operator threads to get a better idea of what is actually going on.

 

You're right that many fail at leasing. But there are also many success stories. I have spoken to several lease drivers who are being quite successful. One drives for a company that tells you to plan on being out 4-6 weeks at a time to be most successful. He goes home to Florida (those in the know know how bad in can be getting good freight out of Florida) on average every 2.5 to 3 weeks and is netting on average $1,500.00 after all expenses and taxes.

"Never" is a strong word that my mama told me not to use. I have looked at buying a truck and leasing it on somewhere. Many of the lenders today want 20% down AND some time as a 1099 individual before they will lend money. Can't say as I blame them when you see the rapidly increasing inventories of used trucks at dealers around the country. How does one get that 1099 experience? Through a lease program.

Rather than saying "never" people should be cautioned to go with great care and research. Even one of the industry's leading consultants, who detests leasing, doesn't discourage it if that is the only way one can go to get where they want to be. He does caution a driver to go carefully. OOIDA will review leases for those considering them (if you are a member). They also provide a model lease against which you can compare the lease you are looking at. One big red flag when it comes to leasing (and this is from several industry experts) is if the company doesn't want to give you a copy before coming to orientation. That is the reason I rapidly scratched Stevens off my list.