Lease Purchase programs.... the scam I'm noticing about most all of them

I see your one of those who are not happy unless they know it all. I said I wish people would think about it before they do it, too many new ones get into it thinking somehow they will make a lot and get to enjoy life going on vacations all the time. Yes, you can make money being o/o but I know how to think that a truck depreciates in value. Sometimes, if you care for your truck, it can last a long time, but sometimes you have company lease and they are in it to make make money too, so they do that by letting you get cheap work at their shops for a price later.

 

I cannot believe how some people act, someone has a different opinion then them and they get there panties all in a bunch, lol. No one is right or wrong, some make money o/o and some rather not mess with it or have seen cases where it did not look like the life for them...this is a place for opinions and a holes..we know we all got our own and do not need yours😉

 

Ok...lets get one thing straight. LEASE PURCHASE DRIVERS ARE NOT OWNER OPERATORS!! Understand that right now. Can you handle that truth? If you do not have the title (i.e your name and the lien holder on the title) then the truck is not yours in any way or fashion. You can fantasize and pretend you are an owner operator all you want. YOU ARE NOT! You are paying the expenses on a truck that is not yours. You cannot take the truck to another carrier.......even if you will keep up the payments. Why is that......BECAUSE THE TRUCK IS NOT YOURS!!!!

Fleece purchase programs are a big hit with carriers because they don't have to pay the normal expenses associated with employees. Now you are considered a "contractor" and the company has no obligation to you at all. Also, the responsibility of paying for the upkeep and fuel for the truck is now yours....even though you don't own the truck!! The carrier lulls you into thinking you are an owner operator (and you are not). NOW THE CARRIER HAS BOTH YOU AND THE TRUCK LOCKED IN!!! Many carriers actually make more money on the fleece purchase (and other related service scams) off the drivers then they do with moving freight! The OOIDA has regularly sued and won against these fleece carriers, Do the fleece purchase carriers care......nope. That's because its the cost of doing business.

I may be coming down hard...but it is for a good reason. Its the truth. The OOIDA has warned drivers time and again to avoid these fleece purchase programs....and for good cause. Unfortunately there are drivers that have to learn the hard way. In some cases have their credit destroyed or worse.


I am on the side of the OOIDA (Owner-Operator Independent Drivers Association) on the fleece purchase issue.

I understand the lure of a shiny new truck and the companies brainwashing you into thinking you are an owner operator. You need to understand that fleece purchases are a very bad idea....period. DONT DO IT!

 

Semantic nonsense ... it's a business ... the name on the Schedule C is the owner of the business ... financial arrangements vis-a-vis capital assets and relationships with customers is irrelevant.

 

Guess what? Don't make a payment, and a lien holder is entitled to start the process to repossess the truck. IT'S NOT YOUR TRUCK.

Guess what??? Neither do carriers that you lease onto running under their authority, with or without a title.

Wrong. Their obligations are spelled out in the operating agreement that you sign to run under the carriers authority.

Said like a company driver with no idea of the responsibilities one incurrs with truck ownership.

That depends on the lease agreement and your rights under it. Your arguments would be more cogent if you were more forthcoming about these situations. Since you're not an owner operator and you've never signed these kind of agreements, you don't know what's in them... except to parrot the line about being "locked in." That's why you trsd and evaluate what's in the contracts before you sign them.

...and OOIDA does the industry a valuable service exposing the bad ones. The problem is they use a scatter gun approach, suing all. They have notably failed when they go up against forthright carriers.

Your language is belittling...

It doesn't fit their corporate propaganda to admit their are good programs out there.

Yeah, that's obvious. Joe Johnston needs to be worrying about his job.

You need to understand that your arguments are couched in the terms of absolutes. There are good programs available. The lure is ownership through a bank loan is not any guarantee of success. That's something you'd be well off to consider before swallowing OOIDAs line.

You can ask all the failed "real owner operators" out there lamenting the loss of their trucks through financial mismanagement. Something OOIDA doesn't want you to think about.

 

Haters gotta hate. When an "owner operator" starts a spiel using "fleece purchase," well, I just turn off the sound. And to think that OOIDA is a save-all is a dangerous thought. They're out for OOIDA. And I say this as a senior OOIDA member. Like IP said, there are no absolutes. Many succeed in a truck lease and many fail.

In any business, there is no guarantee of continued employment. Failure is always an option. Many have failed in the airline and electronics and newspaper and manufacturing businesses, and many have succeeded, too. The auto industry in my state almost collapsed and the financial industry had a meltdown.

Whether one fails or not depends on planning and performance. And a bit of luck from the economy.

 

There are ALWAYS going to be naysayers...

Happened to me back in the 70's, when I bought my first truck... Said I must be brain-dead and I would fail like others before me..

They were right, many did fail, but I wasn't one of them... I had a few years under my belt, talked to a lot of O/O's
and got my finances in order BEFORE I put my money down... Scary, hell ya, but I wanted to at least try and get ahead and better myself..

A lease-purchase is just another way for someone to get ahead, with NO money down, and try to better themselves.. Will some fail, sure they will, but others will succeed..

Some of the Lease-purchases are walk-a-way lease.. May be the best way for some to learn to be businessmen and having a chance to get ahead.. Don't try that by putting money down on a used truck with a bank loan and trying to walk-a-way if you don't succeed...

 

It's really all about homework. Preparation, planning, and performance. Get those in order and you maximize your chances of success.