REAL numbers in leasing a truck: Read before you consider leasing a truck!

Good post OP. Some don't want to hear the truth. They are the ones who fall victim to these scams.

 

Most people that fail at leasing are the same people that would have failed running any business of their own. I am a successful lease driver. I make more than any company driver I know, and I run when and how I want. It's not always the lease. It's the driver.

 

stop lying. You got 2 years expierence and you know more than
guys and girls who been out 15 years and still failed at lease.
You wish you made what some of us company drivers do.

 

Lol. If I wished I made a company drivers salary I would be a company driver.
Explain to me what 15 years of trucking experience has to do with leasing. Leasing is about running a business.

 

Amen. Look, the truth of the matter is that, with the right company (Schneider Choice), a lease driver can make very, very good money. That said, if you're lazy, if you have poor work habits, if you're bad at managing money and time, you will most certainly fail (at just about everything you do). A lease isn't a joke or a one off kinda deal......it's (at least) a 52 week baby that has to be fed every week whether you feel like working or not. But to state that "all lease deals are bad", demonstrates the both OP's ignorance and lack of due diligence (other than reading the same crap on these boards).

 

Actually, the problem isn't that everyone thinks they can beat the system. Reality is that if people stopped and looked they would get into leases that are reasonable.

The problem is that people get into these and don't understand the system.


There are good programs that allow a person with poor credit to get a hard money loan and work their butt off and become an O/O. But when someone comes in, doesn't read the lease, doesn't do the math, isn't prepared to make sacrifices.

Here is a big one. Drivers sign up for a lease with a major company that does training. The lease is designed to have the driver train or team. Driver has never done the numbers so doesn't understand that. So maybe the train for a little then want to run solo. You would think that by now they understood the numbers and how it works. But no, they go solo and it is all down hill.

The sacrifice to make good money (and the money is good) is they have to train. I have done it and it sucks. But I understood my numbers.

Also, where I said about becoming an O/O and this being the sacrifice they have to make. Well what they don't see or understand that these mega company leases are really rentals. The buy-out at the end is higher than fair market value so unless they have saved up they won't even be able to get financing.

A good company back financing for a tractor (for people that can't get a load and have little or no down) should have 3 things.

1. True outside financing. Not just a different company that is owned by the carrier. A separate company.
2. If they carrier you are leased to doesn't work you need to be able to take it to another company. There will likely be restriction on this (remember, you are a huge credit risk and the finance company is likely looking to minimize the risk by making sure that you are leased to a viable carrier).
3. Percentage based carrier. Payments are still going to need to be made but the typical $1 plus fuel carrier isn't going to cut it. You need to make more.

Other factor is you want to be getting a newer, low mile truck. The newer trucks are getting in the 8's and the better fuel economy will make the payment for you. And when you are in a hard money loan you don't want to be putting money into items on an older truck. Or have to worry about those really big repair bills.

 

That is the truth. I split the blame between the carrier and the driver. The carrier should make sure that the person signing the lease understands what they are getting into. But the person signing the lease is an adult has should also build a business plan and run the truck like a business. But sadly they don't.

But while many that have failed at this and blamed everyone but themselves we also have pure O/O's leased to carriers not making more than company driver wages. I almost think they are more foolish than the LP. With an LP you can walk away with little to no impact on you life. Not so easy when you own the truck.

 

Good point

 

That's a tiny bit of money for a whole lot of stress