lease program

Okay, here's what everyone is trying to tell you: You need to learn how to truck first. Theres more to trucking than driving. Like being in the military, you have to learn discipline before you see combat. Learn how to truck before you pay for a truck.

 

Then, after you spend a year or two learning HOW to truck, spend more time learning how to be a businessman. You can totally loose your arse in this business in no time at all.

 

He needs to make himself aware of all the tax liabilities he will be responsible for, and he also needs access to a substantial cash fund to cover significant breakdowns in the beginning, as well as an extreme amount of cash responsibility and discipline. Too many get several thousand dollars in the bank and think that this is "profit", then the tax bills start coming, the repair bills start coming, the insurance bills start coming, freight slows down, illness in the family or self occurs, the slot machines stop paying, next thing they know they are literally bankrupt.

But, like he says some have to experience it for themselves to believe it. Yes, some do get lucky and land somewhere where the lease program is viable longterm, and work their butt off for 50 weeks out of the year and make a little over and above a decent wage but the odds of this happening aren't good.

 

Quad74, lease programs are meant or targeted toward new drivers. Reason being is because they don't know any better. They don't have the experience to know that this is a bad deal. Experienced drivers don't lease.

If you could make money at it and it was so wonderful, trust me, these companies wouldn't let you in on it!

Now besides this, you are a brand new driver. Even if someone gave you a truck free its still going to take you time to figure everything out and you start making money. You don't even know your dispatcher yet and what they are going to give you for miles! You don't just sign on with a company and are given miles to run. This is a common misconception by newbies. What if you sign on the dotted line for the brand new shiny truck and then end up getting 1500miles a week?! Then what are you going to do?

Obviously you have been in the military and are fully aware of what its like to be away from home, as a lease operator you will never see home. There just isn't any margin for it.

If you are deadset on leasing then while you are a company driver pretend like you already own the truck. Do everything as if you were paying for it. Keep track of everything too! Then see how you do. You will know exactly what you will make.

I can tell you now though I think you will find you will make more as a company driver when it all boils down.

It takes about 1600-1800 miles a week just to break even! So once you run 1800 miles for the week every mile after that you will start to make money. If you don't break down....

Crete is a good company man, but highly urge you to put the lease idea behind you. A real, true professional driver will save money to buy their own authority, and will in turn make good money as a true owner operator.

So make that your goal man! If you want to be successful do it the right way the first time and it will save you a lot of time and money.

 

You're making a lot of rather wild assumptions ... assumptions about the per-mile compensation from the carrier to the contractor, that week's fuel trend, the "rental rate" of the tractor, no breakdowns occurring, and no time required to be home for family or medical emergencies, no tickets/fines, no excessive lumper charges, etc, etc. For some, "break-even" does not yet factor personal wages into the equation. That only means the carrier's rental payments are made and the various escrow accounts are paid into and the week's fuel is paid

 

No, when I said "break even" I was referring to the point in which your tractor payment and other weekly financed occurrences such as permits, insurance, qualcomm rental etc.. of which the usual is included in the general lease payment.

Yes you are correct in that actual break even point will vary from individual and will certainly be quite a bit more unless you have absolutely no other bills or responsibilities.

Like I said, the margin for profit is very, very slim in the lease purchase world! As a husband/wife team we did it and just couldn't imagine how a solo driver made money!

 

Actually, quite a bit more than the solo company guys.

 

so many ignorant people in the world.I am a O/O who is leasing a truck through a leasing not a trucking company.My payments are the same as if bank financed it.At the end of my 36 week lease I will hand the man a dollar.I am leased onto a company who is not forced dispatch and I can go home when I want to.I have leased onto companies for the last 7 yrs.I have never worked forced dispatch.Some pay your taxes others calculate and you pay.some provide plates,some you buy.There is many options out there you just have to decide which is best for you.I have seen many drivers get new trucks from companies with the hope of ownership.I dont think that is possible,but leasing a used truck can be done.good luck

 

I've looked at leasing, too. The first thing someone who leases is to realize it's a business. Being in the military has a big advantage and bid disadvantages. The advantage is one acquires the discipline to do things one doesn't want to do.

The disadvantage is that everything is paid for. Your military paycheck does not vary week to week or month to month. You can count on getting that money every month, no matter what. You're sick a couple of days? No problem, the checks keep coming.

Leasing means you have to pay everything yourself. From what I've seen, guys who make it work make about .45-.50/mile before taxes. You can become a new company driver and make .41/mile with much less risk.