Lease Purchase of Truck Needed

What makes lease deals fail is not the program alone. When you run the numbers on many of them they often have a lower fixed cost than what many O/O's have. But the difference is that you have drivers just out of school that have no understanding of trucking let alone the business of trucking. But the carriers will structure their compensation to make the lease deal attractive to a new driver.
Listen to or read what the trucking companies are telling these new drivers and it all make sense. But remember back to when you first started driving. Being told you have to stay our 3-4 weeks then only take 3-days off seems doable but the reality when you get out on the road is not so easy.
I can build a business plan that can make a valid LP program work (not that I would want to do it again). But I know what I am doing. I understand what it takes to build a good reputation with load planners, payroll, shop, etc. And I understand how important it is.
These companies understand that the reason for failure is not that people can't make money doing what they say but doing it is much harder than in reality than on paper. The stress of a new and grueling life style, family pressure, money pressure and that is all on top of the stress of this job.
So if you are new to driving and thinking about an LP program, yes, if you do what is laid out for you it is possible to do it. You have to remember that you have no idea what is required and how hard it is to do it.

 

It isn't just the new drivers who get into these lease purchase programs. Older, more experienced drivers also get lured into them. I really don't blame the carriers for making money from doing a lease. It is the carrier who puts their money on the line and have all the risk. They should be allowed to get a return on their investment. Most of the time the driver has little or no risk. They can usually walk away at any time without penalty.

You should never go into business without enough money set aside to get you through at lease 6 months of payments. If you buy or lease, you should have a business plan with several contingencies. My guess is that at least 90% who do these have never even given a thought of a business plan. There is an old saying. "If you fail to plan, you plan to fail."

 

Since you live in Alabama look at MyWay Transportion or RE Garrison both in Cullman,Al. Their drivers who lease seem to be doing good.

 

You mean to tell me that these trucking companies don't care about me?

Are you trying to tell me that they will rip me off??

Are you trying to say that they will make money off unsuspecting, hard working, trusting, family oriented folks???

Are you saying that they're not in business to make other people rich?

Yes, that's exactly what I'm telling you.....

They feed off of victims with bad credit and no money down...

These fleece purchase schemes should be illegal.

 

pete store in richmond virginia no money down

 

Do not lease a truck from the company that you haul freight for.

It's like letting the fox count the chickens....

$300 a week is not a job, it's indentured servitude! Run far and fast.

 

Ok let me break this down for you.

CRE 2009 Cascadia w 120k on it.
Pay scale .90 cpm LD .089 cpm MT .26 cpm FSC
$457 wk truck payment
$ 192 wk insurance
0.13cpm Varitable milage (Whatever that is)
0.07 cpm Maint
0.015 cpm road tax

fuel avg $3.75 per gallaon
Avg miles per week 1900 - 2300

So here is a weekly break down

1835 LD miles X .90 =1651.50 457 truck payment
265 MT miles x .89 = 235.85 192 insurance
2100 miles x . 26 = 546 .13 cpm VM x 2100 =273
----------------------- .07cpm Maint x 2100 = 147
Total Revenue = 2432.50 .015 cpm road tax x 2100 = 10.29
3.75 Per gallon x( 2100 \ 6.8 MPG) = 1158.08
---------------------------------------
Total operating cost 2237.37
Net pay whopping =195.13

 

Thats not good at all...

 

Obviously that is not enough. Just keep in mind, when you become a business operator, whatever is left over will be your pay. The only expense you can cut and stay in business is the owner's pay. It may be $1200 or it may be -$1200 a week. Can you say "out of the frying pan and into the fire"?

It has potential but if you have not found a decent company and a way to be profitable as a driver, your chances of success as an owner/operator are quite low. If you throw in a lease/purchase with nothing down, no operating capital and lease to a company paying less than a dollar a mile plus FSC, you will find out what cheap wages are. Trust me, they are a statement at the end of the week saying how much you owe, not a check.

With limited experience, unless you have developed work habits and patterns driving that allow you to be profitable as a driver, you will not be profitable as a business owner. The problem with your check may well be the company you are at. So you need to find a better company and become profitable as a driver first.

A business owner wears many hats, driving is the simple one. If you don't have that one down pat, you sure won't have time or energy to master the many others required to make a profit.

Being an owner/operator has potential for profit. But that is the smallest part of the reason for making the choice. It is more about pride, ownership, control and potential. With those things come the high risk and the chance of losing everything you own as well as your family and freedom.

Do you have a business plan? Have you calculated you cost of operation?