I think some of you missed the question I had asked in the first place, but I under stand how a lease purchase works ok... got that much. but understand if your the new guy and they try to push the issue of lease a truck or sit here for two weeks or so..... I wanted to able to ask them so hard questions or ask myself the harder question if it is worth taking the chance or just leave and go home. there is one thing to hear the NO, NO, NO and NO so more, but what information are your all providing me with so I can sit down and number some numbers, while I am a company drive......a lot of you all sound like I will never become an awesome trucker. believe I have listened been here in the world of trucks for at least one min........if your not the one giving me advice to succeed how to you all help each other out....... I read this one post that went on for ever about getting your awn authority, which was great info.... that will help you change your own mind not just someone saying no....it even came with web sites and everything. NOW THATS HELP.
Right there that is the issue you're not seeing ... When many of these company or "salesmen" has to practically FORCE you into a lease (I won't mention any names but you know who they are), that should be a huge indicator that they are trying to push you into something that is bad for you, good for them. When they tell you it's a "win-win", they are lying their butt off and should be charged with racketeering. Like I said in an earlier post, if you don't have at least $10,000 in a lock-box somewhere for initial mandatory start-up expenses and future emergencies and down-time, you have no business even considering leasing. The way many of today's "leases/independent contractor" agreements are written, it is cheaper (more profitable because they pay them SO LITTLE) for the carrier to run a contractor'd/lease truck than to run their own company trucks ... that too should scream "stay away!" But do what you want.
It depends on the revenue that the agreement brings in, your ability to operate efficiently, and what your income needs are. Most folks get caught up by their own greed in a marginal situation- that doesn't work out too well.
Quad, you remind me of myself when I first started. I did a lot of research and always wanted to own a long nose Pete. I was looking at starting out as a lease operator. The company I started with and currently work for requires you to be a company driver for 6 months before signing a lease. So I was saving up money for my down payment, and was blinded by the thought of owning my own truck. Going where I'd want and hauling what I wanted. Well, I started running my truck as if I was paying everything. Found out on my prostar it takes $0.70/mile to run down the road JUST ON FUEL without factoring in the fuel surcharge. My truck payments would have been $718.45/week. That includes payment + insurances. I ran through the numbers and would have needed to run AT LEAST 2,000 miles per week to break even. Well, at the time it was doable. I'm glad I didn't do it though, this time if year our freight is dead slow for flatbed. I'm lucky to get 1500 miles/week. Granted I wouldn't have been tied to the truck, I could have turned it in and went back to company driver and got my money back. Not the money for the truck, but the money in my maintenance account and other escrows. That was when my truck had 40,000 miles on it, I now have 80,000 miles and it leaks coolant into the exhaust which international wont fix, the blower motor for the cab goes out and has to be replaced ever 3 months. So to put it short, MAKE SURE you have the money to fix the truck. Listen to what these knowledgable people are telling you, become a company driver first. You may get out here and realize the lifestyle sucks. That's one reason new drivers sometimes don't make it 6 months. Whatever you choose I hope it doesn't screw you over. Good luck
One of the first things I was told in school was DO NOT UNDER ANY CIRCUMSTANCES sign a lease purchase deal with a company. I was told that they are basically scams to give drivers the illusion that someday they will own that truck. I was told if you want your own truck become a O/O. That's really the only way to make decent money if you want your own truck.
with any luck this guy will have a wife and she will get tired of him saying lease purchase and she will tell him its me or the lease purchase
What are you talking about? Almost all indicators are positive and only people talking about problems are the people making money selling ads needing you to watch what is happen in Washington. Really?!? I was successful but understood that I was in the VERY small minority. You come on here with all this "great" money but completion rates in the industry are in the 10% range and your company has one of the lowest. What company is this? And are you comparing to some fool with great credit that can get a lease on a new truck with a high payment or the level of expenses business minded O/O's look for to keep expenses down so they can make a living and not live to make a payment? What does Volvo have to do with it? In the '05-'06 year the only lower cost of ownership truck is a Columbia with a Detroit (comparing 780 with D12). Before making these statements you may want to look at the reports and data. Companies that do leases are not making money on the equipment. Many lose money. But a lease solo driver averages more miles and most are training companies and it is a very good way to get cheap teams (team loads pay higher per mile but they are still paying a low rate. Cha-Ching). So while they ARE making more money on these drivers it is because of more miles and the type of miles and NOT the equipment side.
Dirtydiesel, One thing to consider is that most companies that do lease will NOT let you go back to being a company driver. There is a reason for that...
