Lease Purchase Programs Scam? Thinking about making the leap?

Discussion in 'Ask An Owner Operator' started by CommanderUsmc, Sep 18, 2012.

  1. CommanderUsmc

    CommanderUsmc Light Load Member

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    Aug 14, 2012
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    Heytruckers,,,,


    I just heard a broadcast from Aubrey Allen Smith. He has his own blog about the "Truth about the Trucking Industry." He has been a trucker for over 34 years.

    14 years as an owner operator. Truth About Trucking, LLC was launched in 2005. He has been involved with the trucking industry for 35 years, accumulating 4 million safe miles. If anyone is thinking about doing a lease purchase plan from any company I think you should listen to his broadcast. Here is the link.


    http://www.blogtalkradio.com/trutha...wner-operator-and-the-lease-purchase-programs



    Here are some statistics from his web page on the success rates of Lease /Purchase Programs.

    http://www.truthabouttrucking.com/trucking.company.lease.purchase.programs/index.html


    I am looking to becoming an owner/operator myself in the future, but after listening to this and doing some research I think I am just going to wait acouple of years and save my money and buy my truck on my own. I am not saying there is no one that has been successful in lease/purchase programs. I have just found there are few people out there that have completed a lease and walked away with the title. That is just the information I am finding. I would appreciate anyone who has any input in this matter or can recommend a current trucking company that has a lease/purchase program that is fair where the trucker actually walks away with title after completion of the lease.


    Thank to you all,
     
    Last edited: Sep 18, 2012
    God Bless America Thanks this.
  2. toostroked

    toostroked Light Load Member

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    Feb 7, 2010
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    I have read a little about leasing, and I believe you have the option to buy, after the lease. It is not rent to own.
     
  3. CommanderUsmc

    CommanderUsmc Light Load Member

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    Aug 14, 2012
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    Toostroked... Thank you for your input. True, you will have the option to buy. AT THE END OF THE LEASE!! You have to go out and secure your own financing and come up with a down payment. Then you pay for the market value for the truck. Basically IMO you are in the same situation then when you started.

    US X Press has a lease / purchase program where you own the truck at the end of the lease. Your payment is going to be $650 a week! That is $2,600 a month for 3 years. .84 cpm plus fuel sur-charge. You will average 2,500 miles a week. 2009 Newer Model truck with 350 K to 500 K miles. You pay for the repairs to the truck, taxes, and all the other hidden expenses. Tell me how you would make any money? Your truck WILL break down. IMO these leases are designed to make you fail. IMO They want you to fail. I have heard of many stories from owner operators who lease from these big companies. When you get close to paying off your lease, they cut back your miles so you fail and turn in the truck so they can lease to another driver who wants a zero down lease. These leases are a cash cow for these companies. If you do not finish the lease and walk away it goes on your credit and your DAC report and you still owe money on the lease. The company then immediately puts another driver in the truck. Some companies have up to 3 drivers still paying for a lease they walked away from. They make more money on the leases then they do from freight. The Owner Operator Independent Drivers Accociation (OOIDA) recommends to NEVER sign a lease purchase contract. www.ooida.com/blogI/?p=185

    Now there may be some legit companies out there who have fair leasing purchase programs with a $1 dollar buy out. The percentage is very low when it comes to a driver actually walking away with the title to the truck. If anyone knows of a company who has a fair lease purchase program I would like to know about it.
     
    God Bless America Thanks this.
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