KLLM Lease Purchase

New driver= Don't do it

 

drive for a while then decide if its for you .

 

As a lease operator you will (financially) be in the hole each week. You will have to work 2 to 3 days each week to make enough money to cover your fixed and variable costs associated with your "business." Many aspiring o/o's try lease purchase programs without researching the program at all and find themselves in hot water very fast.

They believe they will make more money than a company driver. The truth is the truck will "generate" more money than a company driver will BUT after all the trucks expenses are factored out, maintenance fees are removed, AND taxes are set aside you will find you have LESS money in your pocket than a company driver that ran the same number of miles.

Remember, as a lease purchase operator you dont get ANY benefits either. No holiday pay, no sick days off, no paid personal days, no discounted family medical insurance premiums, no matching 401k etc. It will be up to you to set aside your taxes AND pay them quarterly. Don't forget workers comp insurance (depends on what state you live in whether it's mandatory) and self employemt tax.

Want to go home? Sure, you can go home. Just remember the company will still charge you for the truck payment, bobtail insurance premiums, qualcomm fees, and whatever "other" charges they have written into the contract you signed.

This is where many drivers start seeing NEGATIVE settlements. That means YOU owe the company money. WOW! what a deal huh?!

Get back to work and bust your butt and maybe after a hard week of running you can pay back the money you owe plus the current weeks charges AND put some money in your pocket.

As a new driver how about you learn about the industry, seasonal trends, and freight lanes before you try to get a truck of your own?

The best way to go into business for yourself in this industry is; drive as a company driver for a few years. Save enough money to put a down payment on a used truck from a 3rd party lease agency or dealer. Be sure to have 10 to 20 grand in savings as you start your business. Lease to a carrier that best suits your lifestyle and type of hauling.

 

You need to learn about the business at least two years before you even consider doing a lease purchase program with anyone!
You will not believe how much more you will know in two years than you do now.
Learn to run the truck as a company driver....be patient!

 

Admittedly I am new to the whole idea, but it seems to me that every lease program is just a way for the trucking company to ensure the driver owes them something every month and is therefore that much more "motivated" to work, perhaps working in ways they wouldn't otherwise do if they were "just" and employee. Am I wrong about this???

 

Lease Purchase = Indentured Servitude

 

Couple of guys here gave you good advice.

Learn the business, save some money then start building YOUR business.

You DO NOT WANT to dig your self in the hole right out the gate..

 

I agree with everyone else stay away from lease programs!Companies who like to push it are the bottom feeders that target newbies,its just to make the company more $$$ at your cost that's all.