Please stop leasing.

Discussion in 'Lease Purchase Trucking Forum' started by Dre Strong, Jun 6, 2022.

  1. Dre Strong

    Dre Strong Bobtail Member

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    May 24, 2015
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    Lease Solo
    It’s more like a rental program. It's not lease to purchase!

    We provide:
    - 2019-2022 Freightliner, Kenworth and International trucks
    - Personal dispatcher
    - No forced dispatch
    - Drop & hook, live load & live unload loads
    - 24/7 dispatch service
    - 24/7 maintenance service
    - 24/7 ELD service

    Trucks:
    - Trucks that we provide run only under the authority of ShipLuxe LLC
    - The trucks that we provide are 2019-2022 Freightliner, Kenworth and International
    - The trucks are equipped with mattress, fridge and inverter
    - Trucks run 64/70 mph depending on the truck
    Payment:
    - Driver gets 85% from the weekly gross
    - Weekly gross includes the loads the driver did between Monday and Sunday of a week
    - During first 2 weeks of work driver is able to request a cash advance up to $500 per week after finishing the first load of the week
    - First payment will be released on 3rd week
    - Average lease driver makes a gross of $6500 - $8500 per week
    - Average lease driver gets a paycheck of $2800 - $3500 per week

    Deductions from weekly gross:
    - Company charge - 15%
    - Truck - $950/week + 0.15/mile
    - Insurance - $450/week
    - Administration Fee - $100/week
    - IFTA - $35/week
    - $3,000 security escrow for truck (will be collected $250-500 from every paycheck)

    Additionally:
    - Zero down-payment, two weeks notice to walk away.
    - Lease drivers stay on the road for 3 weeks and then go for a home time up to 3-4 days (negotiable)

    *****Why would anyone agree to something like this.*****
     
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  3. Big Road Skateboard

    Big Road Skateboard Road Train Member

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    Lotta effort into that post, so i'll at least give a reply.
     
  4. chimbotano

    chimbotano Medium Load Member

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    It is unbelievable!!!! I asked the same question to a couple "o/o" Why would you agreed to do something like that????. Both told me that they don't want any responsibility for owning a business. all they want is to drive and get their cut. They think, if something happens to their equipment, big daddy is going to bail them out. That is the reason they are running like 15,000 per month and scraping for money at the end of the month.
    me, as an 100% independent O/O , I paid off my new reefer and my used truck within 4 years. and I run about 60-70k miles per year, and I can refused to haul cheap loads for as long as I want to.
     
  5. Dre Strong

    Dre Strong Bobtail Member

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    I just copied and paste what was in my emails from some idiot carrier.
     
  6. pumpkinishere

    pumpkinishere Heavy Load Member

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    The deductions from weekly gross is stupid. A driver can buy their truck from some dealership and do much better than this nonsense, I guess the difference you would need down payment buying from a dealership but this lease is like a rape case. Idk idiot drivers fall for it I guess.
     
  7. tscottme

    tscottme Road Train Member

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    I worked for a company with a very similar lease program. It's not lease-purchase, it is lease only. As long as you give a minimum of 30 day notice to leave, you can walk away and pay nothing. The weekly costs is very similar to the numbers you mention. EVERY truck is/was a new truck and the lease is a full maintenance lease. Everything except tires and windshields, IIRC, are covered by that weekly payment. I was a company driver at the company. I got paid wages, and the company paid for everything, including fuel. There is a very famous YouTube truck driver running team for that company and paying those expenses. You can pick your loads, or they will pick the loads for you or put you on a dedicated account, you choose.

    My dad was first a company driver for a few years, then became an owner-op with North American Van Lines. He was with NAVL just long enough to learn that owner-op was far more stress and responsibility and taxes for not enough more income. I never had interest in being an owner-op, and especially a lease-op. The lease ops at the company I worked for were essentially using the company's credit to walk into a comprehensive factory Full Maintence Lease, which removes maintenance costs from the equation. Since they are dealing with a factory FML they even get a rental/replacement truck should one of their FML trucks be down for a long time. A newbie with great credit, huge down payment, but no business history in trucking will not get an FML. The lease-ops use their lease exactly as a rental. Their goal is NOT to wind up with a high-mileage semi-truck in 5 plus years. Their goal is to make the $3-10k revenue per week, have a new FML truck supported by dealerships all over the country, and predictable expenses.

    I know their are lots of dishonest trucking companies leasing trucks in various conditions to anyone dumb enough to sign the lease agreement. I know at lots of companies the trucking company is making a sizable profit on the truck even if the LO never drives. I don't know how Lease-Purchase differs from the walkaway lease at the company I worked for, and I know the owner and family were honest and smart running their business. I never chose to lease-op because I never felt I was committed to learning enough about lease agreements, operating a truck, or picking freight to take on the responsibility. In hindsight, I see THEIR lease-op program had virtually no risk beyond one month of truck and insurance payments if you walked away with zero or too little notice. I never wanted to think more about trucking than as a source of income. Nobody should sign a lease agreement until you have read every word, or had a lawyer read and explain every word to you. There are enough sneaky trucking companies that make their money off leasing the trucks and not moving the freight. Lease-op is not necessarily stepping off a cliff. But you should probably assume it is walking off a cliff until you can prove it is safe. This reply is not telling anyone this business arrangement is safer than the OP stated. It is safer than the OP stated if you know EVERYTHING in your lease agreement and the company you are doing business with. Make choices like your life depends on them.
     
  8. chalplec

    chalplec Light Load Member

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    I'm a company guy and I really don't get the point of these posts. I don't ever see lease people complaining as much as owner operators. Owner operators will buy their own truck and take all of that liability then go and lease on somewhere giving away 20% because they don't want to handle authority paperwork and getting their own insurance. I've never hear a lease driver call himself an O/O but every O/O just loves to butt in and want to so desperately be heard when people talking about leasing. They're like the snot nose kid at the family reunion that always wants your phone to play games. But it's always a "I talked to a guy who was lease and ..." stories that constantly get brought up. It's never based on truth or your own experience. People don't even post in this section anymore because every single thread I've clicked on the first page is some mouth breathing "I paid my truck off and do bla bla bla" in a discussion that had nothing to do with them in the first place. Nobody leasing ever claims to be an owner operator and nobody leasing ever claims to make what owner operators make. But yet it's just consistently the same O/O's coming here throwing their poop against the wall hoping somebody gives them attention because they've been sitting at the truck stop for 3 days with nobody to talk to. It's like going to the company sections and people are discussing starter companies and there's always that one missing chromosome hillbilly that has to butt in and says he's been trucking for 23 years and would never work for that pay. Like that's a cool story boomer but this discussion doesn't even apply to you.
     
  9. Judge

    Judge Road Train Member

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    To late.

    I just leased a International Lonestar with Maxxforce to Celadon.

    1D428C93-A503-4D12-B554-3B6724684E1E.jpeg
     
  10. chimbotano

    chimbotano Medium Load Member

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    then, you as a company , you don't know what you talking about. That is the very reason you don't get the point.
     
  11. MysticHZ

    MysticHZ Road Train Member

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    Actually he's spot on and you missed his point.
     
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