I never said that there are any "good" leases. Leases are neither good nor bad. They are essentially a business tool. Has nothing to do with owning the truck, nor the value of the the truck or wether the company is benifiting more or the leasee is benifiting more.
It's simply a cost that goes into the equation.
You have an older truck, no weekly capital cash out lay. But you have a high operating cost - fuel, maintenance, and the need to maintain a large maintenance reserve.
I lease a newer truck, high weekly capital cash outlay. But low operating costs. 7 MPG, under warranty, PMs only and low maintenance reserve to cover wear items.
Niether way is right or wrong. It's just simply a matter of personal preference.
What most people attribute to being evil about leasing isn't really the lease. It's the operating contract with the carrier. Some are better than others, some are downright onerous.
How much did you really get paid as a lease owner?
Discussion in 'CR England' started by Rosson76, Oct 31, 2010.
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MysticHZ not trying to get into an arguement with you, but leases are far far far from being an intelligent business tool. Leases are a way for trucking companies to make money on the side. Most trucking companies even have seperate offices for their leasing divisions. They make so much money they seperate it from the trucking company for tax purposes.
Just how long have you been leasing your truck? How long will you have to go until your lease is up? Will your "warranty" last until you get your truck paid for? If not how are you going to pay for maintanance + the huge payments? Are you just planning on ending your lease at some point and starting another to avoid the balloon payment waiting for you at the end of your lease? What if you have a breakdown that is expensive and your "warranty" doesn't cover it? Read your leases fine print. Truck "warranty's are not bumper to bumber full coverage policies. Just wait till your A/C goes out. Warranties don't cover that. Even brand new trucks don't have a coverage for A/C's. If you think they do then your kidding no one except yourself. Warranties, also don't cover brakes, hoses, tires, air lines or any other part that gets replaced often and it's usually the small stuff that will nickle and dime you to death over time. You can't be serious in the long run with a lease. Maybe leases work for a few months maybe you will even get lucky for 6 months, but for long term purposes a lease will catch up to you (and everyone that gets into one). And it will make you beg and plead to go back to being a company driver.
I'm not trying to say I'm better than you. I'm not saying I know more or that I've been through more either. I say all this because I have wanted to be an O/O since my first year of driving way back in '01. My father and I have tossed the idea around even before that. We have both read the lease agreements. We have ran the numbers. We have researched this over and over again. 98% of all leases go bad within the first year. That is staggering odds. If you are in the 2% of the the ones that make it through the first year then great. But what happens next year when crap starts breaking? The lease payment is still going to be due. I would hate to be spending over a thousand a month on payments and have to hang it up because of a $900 repair bill that I don't have the money to pay for and the warranty won't pay it.
Leases will eat your lunch. A few get along with leases until something happens...and something WILL happen. Trust me. If it can go wrong sooner or later it will go wrong.
A driver doesn't need to be forced inbetween a rock and a hard place with a broke down truck and a $1500 truck payment due. Just because you have a big payment and a "warranty" that doesn't mean your invinsable to losing your shirt. Advertising for leases saying they are a business tool is just irresponsible. I will never advertise for a lease or any company that offers them. Because I know what a lease truly is. A lease is a money making tool for the company that offers them. It's nothing more than that. Any company that is reputable will not offer leases because they don't want to screw over their good drivers with such a bad deal as a lease is.
Leases have been, are and will always be a very very very bad idea for any O/O.scottied67 Thanks this. -
Really? Are you for real?
Sir. I respectfully..... whatever. Sign your next retirement check and go give it to a crackhead as a gift. Thats how your lease will turn out. I guess I wouldnt be so offended if your position and purpose for leasing was to idle your truck when you want, or choose the out of route miles you want to run, or even have the size inverter YOU want, so you lease to do it your way. But to make money? After what you have admitedly read? Really? -
Rocky64,
What I meant was that I have talked to enough experienced truckers and read enough of the posted forums in here to realize that only 2 percent of the leasers actually make it. I am going to England for the position of a "Team Driver", not leasing. Even if my paycheck is only 200-400 a week......it's more than I am making now, plus I have my monthly VA check for the bills at home.
As far as leasing goes, I have 90 days out on the road with another lease-operator to decide what I will do at the end of my training. What are the odds that I will end up riding with one of the 2 percent of lease operators that actually make it??? I am sure I will have a nicely painted picture of leasing versus being a team driver by the end of the 1st month while I am out on the road with the L/O....wouldn't you agree? -
Apologies to you, Sir. Good luck. I wish you the best.
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I wouldn't put any confidence in any lease operator that hasn't been in the same truck with the same company for at least 1 year. If he/she has made it that long and is still happy and still wanting to continue then they would be worth listening to.
Trouble with that is...you will be very hard pressed to find one.
On the other hand. Look around and see how many O/O you can find that has a used truck that they paid cash for or financed a small amount on. One that has had the same truck for several years. You see them all over the place. Almost every truckstop. Why? Because they are the ones that's got it figured out. They know what it takes to be sucessful.
Leasing a truck will get you nowhere except in the poor house. The odds of you being a sucessful O/O with a short term or long term leased truck is slim to none. -
I made about $800 week as solo lease op before taxes, running illegal, and constantly begging for frieght. And spent God only knows how long at loading docks. I went to work for JBHunt doing a regional as a company driver ran legal with no truck worries and net $700 to $750 wk.
Beware of No Freight Nate -
Rosson76,
Do yourself a favor and don't rely on this forum for 100% of your decision making. You have to remember that only a small percentage of drivers (from any company) are sitting around in truck stops talking trash about whatever company has done them wrong and never telling the full story. I'm not supporting leasing nor company, I'm just saying at some point you have to do like I did and say hey is this something I really want to do? I realize there's risk involved and assess if it's worth it to you or not but please don't let the forum make your decision for you. The majority of truck drivers whose opinions are good or bad are not online but behjd the wheel... -
Rosson76
this thought makes me want to lie down in my grave till the thought goes away!! i wanted to go L/O untill i found out the failure rate is 96% and that some L/O are set up to fail!! i don't know how long youv'e been driving for as a word of advice if you haven't been driving that long then go in as a company driver grin and bare it then if you wanna go L/O great and if not atleast you didn't screw by having them put it on your DAC. if you haven't been driving that long id'e go as a company driver and learn the bussiness. cover YOUR ### cause no one else will period!!!! look out for you!! -
Well, I was 95% sure of going the lease operator route before reading this thread. Now I'm 95% sure I'm going to company drive for a while before trying anything else. IMHO, any company looking to cram a lease down your throat and doing anything but holding a gun to your head and forcing the blood...er...I mean pen...into your hands to seal your fate as a driver with only 30 days on the road actually driving (and less than an hour of road time while training) is going to benefit from your desire (and the cartoon dollar signs in your eyes) much more than the one signing the lease. It sounds good in theory, but make sure you bring a magnifying glass to read all the fine print just above where you sign the next 6 months/year/3 years or life over to them.
Kudos to both MysticHC and dave_0755 for making a valid point for each side of the "to lease or not to lease" question. Both have good and bad things to say about one side or the other, and both have been successful in their endeavors. The real question now is, what is right for you? Personally, I'm going to gain more experience before choosing either option.
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