How do the owner/operator lease-truck-back-to-company programs work?

Discussion in 'Questions From New Drivers' started by haulit6272, May 5, 2019.

  1. haulit6272

    haulit6272 Light Load Member

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    I don't know if you're talking about you leasing the truck you own to them, or them leasing the truck they own to you.
     
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  3. truckdriver31

    truckdriver31 Road Train Member

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    yea but 99% of the companies that lease you a truck will do nothing to repair your credit. there are very few and i mean very few that report the good. most just report the bad. could you image what renters credit would be like. if the rent payments reported to all three credit agencies. but the system doesnt want everyone to have good credit. js
     
  4. haulit6272

    haulit6272 Light Load Member

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    Did he really speak of having to unload trucks between 24:24 and 24:48? Is that an industry dirty little secret? I've been hearing of guys in their 80s starting out in CDL class. I doubt they're doing any lifting. If it's a known thing that can happen, unless you work for Walmart which guaranteeds 'no touch, ever,' why aren't more people talking about it?

    As for owner operators, all I know is, I look at the cab door of every truck I pass on the road out of curiosity, and I see a lot of "Joe Doe Transport, Tiny Town, Arkansas" on the side and assume it's either his truck, or a small mom & pop firm that hires family and friends to drive however few they have. Then there's Sasnak with his youtube channel who has his own custom rig that cost megabucks, and he trashed the idea of having your own authority in favor of owner/operator, which he does. So it looks like not everyone thinks it's a scam.

    I won't click Thanks since you told me not to.
     
  5. pavrom

    pavrom Road Train Member

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    Its just general picture ....
     
  6. Gdog66223

    Gdog66223 Road Train Member

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    Joe Doe Transport sounds pretty good... You need a name where FMCSA will leave you alone... Like Broke Man Truckin... or Poor Man's Transport... or Always Borrowin Heavy Haulers...
     
  7. Ridgeline

    Ridgeline Road Train Member

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    I really wish there wasn't this interchanging term used - LEASE

    The reality is this, there is a lease purchase and a lease to a carrier.

    A lease purchase is what happens when a driver or anyone for that matter goes to a company and gets into their purchasing program to get into a truck. There are a lot of reasons WHY they do it, there is an assumption among people here that it is ALWAYS because of poor credit or something like that AND there is an ASSUMPTION that most will fail because of what people have written about their FAILURES here.

    BUT the more common thing that happens in this industry is what is called a carrier lease.

    This is a legal agreement that is governed by the FMCSA to allow a carrier to add 'ad hoc' capacity to their fleet. IT done by any owner (doesn't have to be an operator) who does not have an authority to operate.

    I have 78% of my fleet leased to different carriers, I do this because I don't want to manage the back office operations, even though for the rest of the fleet I do now. The rest of the fleet is either dedicated work or contracted work - there is a little difference for my company so I keep them separate.

    ANY one running for companies like FedEx and Landstar are leased to the carrier.
     
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  8. Brandt

    Brandt Road Train Member

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    It more simple then people are saying. You can buy you own truck and then lease it to a company like Landstar and they do lots of things for you paperwork and billing and have loads you can pull and they take a % of the load.

    You can go and lease truck from a trucking company and they control everything about your business. They set the truck payments. Then they tell you how much they will pay you. I'm sure you can see that big problem. Then even tell you were to go. Like we only have loads to the Northeast and you have to pay $300 in tolls to drive the truck in the Northeast. People see that new truck and only have sign their name and they are trucking. What they don't tell you is the payments are crazy high like $1,100 a week. They are walk away lease, if you don't like it you can walk away. It also makes a great business model for the trucking companies. They get new driver to pay extra high payments on the truck. When one driver finally gives up or goes broke. They have the next new driver ready to sign up and go make the big money. They say thing like if you a hard worker you can make it but it kinda setup to make you fail.

    Did people hear about the CR England law suit. CR England payed 37 million dollars to settle out of court just because they care so much about drivers ha ha.

    This guy is funny
     
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  9. haulit6272

    haulit6272 Light Load Member

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    If that means the driver owns the truck, and FedEx and Landstar are paying them not only to drive it, but leasing it in order to treat the truck as if it's their own, dictating everyplace it goes and when, I think I like that idea. You have two sources of income stream, as long as you like the runs they give you, and it would make sense to me that since they're paying for the use of the truck, they aren't going to leave it sitting idle such that they aren't making money and you aren't either. On the other hand, they could run you ragged and deny you the days off you need for rest, dental or dr. appts, family emergencies, etc., claiming, "We're paying for that truck and it moves when we say it moves." The phrase "double-edged sword" comes to mind.
     
  10. MysticHZ

    MysticHZ Road Train Member

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    You're misunderstanding what leasing is. It is not the truck, it's the service.

    The company is leasing transportation services from you. For this service they pay either a flat milage rate or a percentage of thier revenue when, and only when, they use your services.

    Your responsibility is to supply the truck and the driver to provide said service.
     
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  11. starmac

    starmac Road Train Member

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    Actually There is such a thing as leasing the carrier, or contractor, in my case the truck, and they pay my driver seperate. I work for a contractor some and he leases, and insures my truck, then pays my driver and I get the truck check. This is on dirt jobs, and the driver has to be paid davis bacon wages, workmans comp,etc,etc. It just makes it easier on us both, plus when there isn't any truck work, my driver can help him too. It still works out to the same hourly pay, the same as if I was furnishing everything.
     
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