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Old song, same dance ?

Discussion in 'Ask An Owner Operator' started by getoverit, Sep 29, 2010.

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  1. Sep 29, 2010 #1
    getoverit

    getoverit Light Load Member

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    Sep 15, 2010
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    I know Lease purchasing has a bad name. I ask those who know what to look for in wording in a lease purchase to seperate ( any ) good from bad. The one I am being proposed to is not thru a trucking company, it a contracting company with mostly owner operators. There will be a few lease purchases as I am told. It sounds like they need to fill positions of demand for trucks.

    I am now anticipating a land mine of laughs, so have at it, give me the good with the bad with this scenario. I need to make sure a check is coming and not a nightmare.
     
    getoverit, Sep 29, 2010
    getoverit, Sep 29, 2010
    #1
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  3. Sep 29, 2010 #2
    Les2

    Les2 Road Train Member

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    kicked back in my lazyboy...
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    I'm totally against LP! But if you just have to do it, then read over the contract and if you have to have a lawyer look at it. Most LP's is to benefit the company, not you.

    A couple of questions you might want to be asking yourself and the company...

    How long is this freight gonna last?

    Why all of a sudden do they need all these O/O's?

    Are the rates gonna be high enough your gonna make money and not kill yourself doing it?

    See, alot of companies go in, cut rates and end up with more freight than they can handle. The reason they can't get O/O's is cause the rates are so cheap they won't make any money. SO they then decide to go the LP way to attract people who have no other way to own a truck. Freight gets covered , plus they got someone making their truck payment for them! Its a win win for the company!
     
    Les2, Sep 29, 2010
    Les2, Sep 29, 2010
    #2
  4. Sep 29, 2010 #3
    Brickman

    Brickman Trucker Forum STAFF Staff Member

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    Sep 17, 2006
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    Its not called FLEECE purchase for nothing!


    DO NOT DO NOT DO NOT DO NOT DO NOT DO NOT finance your truck at the same place you get your freight.

    I hope I wasn't unclear on that point!


    I personally lost $30,000 and a lot of hair in a fleece purchase gone bad.

    The company can and often will starve you out for the simple reason that they no longer like you. It often happens about 6 payments or so left on the note.

    Finance your truck separate of the load source. This way if you guys don't work out you can migrate the truck onto greener pastures with a minimal of work.
    If they are toting the note you have about two options. Stick it out.... let em have the truck back.
     
    Last edited: Oct 2, 2010
    Brickman, Sep 29, 2010
    Brickman, Sep 29, 2010
    #3
  5. Sep 29, 2010 #4
    Les2

    Les2 Road Train Member

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    Still alittle fuzzy there brick, think you could clear it up a bit??:biggrin_25526:
     
    Les2, Sep 29, 2010
    Les2, Sep 29, 2010
    #4
  7. Sep 30, 2010 #5
    Krooser

    Krooser Road Train Member

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    So what makes you smarter than thousands of other drivers who couldn't make it work?
     
    Krooser, Sep 30, 2010
    Krooser, Sep 30, 2010
    #5
  8. Sep 30, 2010 #6
    73MG

    73MG Bobtail Member

    16
    1
    Apr 6, 2010
    Lonsdale, MN
    0
    Depends on the company. I had my own truck but ended up in the hospital and had to return it to the dealer. When I returned I leased a truck from one of the owners It is a small (30) truck company all o/o. He gave me a good price on a truck he was going to sell anyway and it is doing well for me. They always have treated me well and have as much work as I want for good rates. This is not what you will find leasing for the larger companies as you will be competing with company trucks for the loads. I also make 85% of the load. I would never drive my own truck for .90 and fsc. Really not a smart way to run your truck when they are usually getting over $2.00 for the load.
     
    73MG, Sep 30, 2010
    73MG, Sep 30, 2010
    #6
  9. Oct 1, 2010 #7
    Brickman

    Brickman Trucker Forum STAFF Staff Member

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    The other side of that coin is that the small comps can screw you the same as the big ones. The one that got me I was one of only 5 including the two owners.
     
    Brickman, Oct 1, 2010
    Brickman, Oct 1, 2010
    #7
  10. Oct 1, 2010 #8
    getoverit

    getoverit Light Load Member

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    Sep 15, 2010
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    OK, Here is what I found. Things to look for in a contract or change but I will say this I did my research and don`t trust the situation because of stability and questions.

    Do not allow the trucking company to make you get your work done in their shop. Inflated bills for one.

    True to what many say, the rates you get might go much lower.

    Just those two are big REDFLAGS.
     
    getoverit, Oct 1, 2010
    getoverit, Oct 1, 2010
    #8
  11. Oct 1, 2010 #9
    bobobrazil

    bobobrazil Medium Load Member

    407
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    Nov 28, 2007
    In Front Of You
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    Most people that do a lease purchase are people that are just dying to be an owner operator but have either no money or no credit to buy a truck.

    Resist this trap! And don't think that you are an owner operator if you don't resist this trap.

    An owner operator can choose who he wants to lease on with...you will not have any choices. If an O/O decides to leave a company...he takes his truck and goes somewhere else...you will have to leave the truck.

    Lease operators are sold the sizzle...not the steak!:biggrin_25513:
     
    bobobrazil, Oct 1, 2010
    bobobrazil, Oct 1, 2010
    #9
  12. Oct 2, 2010 #10
    getoverit

    getoverit Light Load Member

    69
    18
    Sep 15, 2010
    fort worth
    0
    Final conclusion: As it stands and I did some research. The odds are against most lease purchases. If you want to be an owner operator work hard save the bucks and then buy your own truck. Good business strategies don`t work with promises. Proper legal paperwork is required these days to protect parties so do not let promises enhance those who have alternative intentions. If one must go with a lease purchase then have your attorney write it to your advantage. If they balk at the lease proposal then hit the door running.

    Write it to protect yourself from a downfall in business, lower rates and such.

    Put yourself behind the wheel instead of them. Protect yourself with your attorney, not their attorney.
     
    getoverit, Oct 2, 2010
    getoverit, Oct 2, 2010
    #10
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