Sammons Trucking Lease purchase????

Discussion in 'Motor Carrier Questions - The Inside Scoop' started by michaelbunt, Apr 25, 2013.

  1. MOGLAR

    MOGLAR Heavy Load Member

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    This is not a waste of time. In addition....the attorneys that wrote the contracts did so for their clients (the Fleece Purchase Companies). They did not write the contracts to benefit the driver! DUH!!

    The best message I can give is for drivers to do their due diligence and do their homework. This does not mean listening to truckstop banter or driver fanbois of the fleece purchase

    LEASE PURCHASE LEAVE IT ALONE
    :biggrin_25516::biggrin_25516::biggrin_25516:

    7th, 2006 by Coopsareopen Admin
    More and more, I hear brand new truck drivers contemplating the lease purchase programs many companies are now advocating. It never ceases to amaze me how these companies will target new drivers. Swift Transportation and Prime Trucking are two of the most aggressive lease purchase companies out there, but it seems all of the companies have jumped on the band wagon.
    After all, why wouldn’t a trucking company want to pass along the costs of fuel, purchasing a truck, truck maintenance, truck insurance, permits and health insurance? Not to mention, they no longer are expected to provide a 401k plan with company match. And they get to charge the driver much higher prices than market value for a truck that won’t be worth much at the end of the lease.

    I have heard of drivers buying a used, plain-jane Freightliner century or classic through lease purchase programs and paying in the range of $700 per week. That’s $2,800 per month. If you talk to owners of big bunks (the large custom sleepers with showers, toilets, and bells and whistles the average truck driver would never think of), they’re paying the same per month- and that’s with very little down. Keep in mind, there’s a huge difference between a brand new big bunk and a late model truck with a factory sleeper.
    Here are some things to think about when contemplating a lease purchase agreement:

    1. Trucking is unpredictable. If you don’t have the cash or credit to buy a truck on your own, what makes you think you will be able to float through the rough times? Accidents, injuries and illnesses happen. And when they do, you’re payments won’t stop to wait for you. Trucking companies are in the business of making money, not providing charity.

    2. You don’t own your truck. If you’re leasing your truck from a company, THEY own it- which means you can’t leave. It means that no matter what they do to you- drop your miles, load around you, lie to you, charge you more and more for “incidentals”- you can’t just leave. If you get a loan from the bank, you can change your company. If you get a loan from the company, you can’t.

    3. You are signing a contract. You need to understand the terms of the agreement. If you get screwed, it’s your own fault. You cannot trust what the company rep tells you to your face- if it’s not in writing, it just doesn’t count. Always, always, always have a lawyer review the contract and explain to you the upside and the downside. If you’ve already signed, still take it to a lawyer so that you know your options.

    4. Others have been there. Talk to owner operators and ask about the lease purchase deals. You will find that a lot of them started out with one and learned about them the hard way. Many of them were unable to complete the lease. Many of them completed the lease only to find they had worked like dogs to buy a truck that now had a million miles and no value. Learn from their mistakes.

    5. These companies tend to target new drivers. Why? Because new drivers simply don’t know better. If you haven’t been in the industry for at least a few years (and spent those years asking a lot of questions of a lot of drivers) you just don’t know enough about trucking to make an educated decision.

    Trucking is about making your own road. But, as those of us who have been trucking for years all know, sometimes the road you choose turns into treacherous route. Make your choices carefully–they make the difference between a prosperous trucking career and a transportation nightmare.
     
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  3. hi beam

    hi beam Light Load Member

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    I have owned three trucks over my years in trucking.. Retired in 1997, so I have put my time in trucking..

    I would NEVER tell a new driver to go with a lease purchase or even buy their first truck... Agree with getting a few years under your belt before jumping into that..

    With you putting money down and buying a truck on time, is NO guarantee that you will succeed either.. I have seen many fail at that too..
    What I was trying to suggest, if you are going to become an O/O, You should use your time in that field...

    Are you going to lease to a trucking company or get your own authority?? That is where you should be using your time... Making a spreadsheet, know areas of the best lanes of travel for highest revenue..

    Spending even 10 years as a driver, is not a guarantee you will succeed as a business owner either.... Just when you think you have it figured out, you will get hit when you least expect it..

    There are plenty of Drivers on this website that has very good information on becoming a business person in the trucking field... That is where I would spend my time if I were to looking into become a O/O...

    Good luck on buying your first truck, you are going to need it...
     
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  4. Rigbuilder

    Rigbuilder Medium Load Member

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    I wish I would have read this thread before I signed on with Sammons Trucking. I left a good job because I wanted the opportunity to have my own truck and the freedom to choose my own loads. It was NOT worth it.

    1.) If you are looking to be able to save money, pay your bills on time or have a life outside of this truck, this IS not the company for you. I made 79$ last week because the Sammons agents in Missoula love that cheap freight. 1.70$ a mile is my average so don't fall into the "We don't take less than 2.25$ a mile" crap that they spew.

    2.) They buy CRAP for trucks. High miles, loads of issues. Ask ant of the 15+ drivers who got one of the former GTI trucks just how well that's gone for them.

    3.) THE EMPLOYEES. This is a group of people who will sit at the local bar or outside in the smoking area and talk crap about the drivers and their ordeals in front of new recruits. You wouldn't believe the stuff I heard on my first day about another driver. I was humiliated for the guy. Don't even get me started on the maintenance coordinators. Dave Repp and Don Green. Two of the worst individuals you'll ever have the misfortune of running into. Arrogant, rude, lying, ####y men. I could say worse but I'd probably get booted from TR. They tell you on your first day that they are YOUR employees. Yeah, right. See how well that holds up the first time you break down.

    Point blank, don't do it. Don't do it. I'll probably get slammed and called a disgruntled employee who got fired. You're right, I am VERY disgruntled. I was lied to and feel like I got sucker punched.
     
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  5. DrFlush

    DrFlush Road Train Member

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    I know I make as muck or more take home here than I ever did as a company driver and I am home a lot more, average 3 weeks out 1 week home. My average over the past year is 2.19 per loaded mile to the truck, My truck had 462 k on her when I got her, but then again I didn't take the first thing they tried to sell me. It's a used truck and I did spend 15 k this year in maintenance and repairs.
    Everyone I have talked to or dealt with, employees at the main office or agents across the US, have been professional and friendly, but, I ain't here to make friends I'm here to make money so, maybe they talk behind my back, I don't care.
    As far as maintenance goes I rent a trailer from them and they have no problem spending money on it no questions asked, as far as truck maintenance goes, Momma said if you can't say something nice don't say anything at all.

    Point blank, not everyone can run a truck and make money, maybe it was the truck having too many issues, but to that I say, your the one that L/P that particular truck with a 30 day warrantee, so you should be happy you didn't listen to some of these guys and get a bank loan because you would still have to pay it off. I ran a different type of business for 16 years before this so I did have an advantage.
     
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  6. MOGLAR

    MOGLAR Heavy Load Member

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    Kansas City , MO
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    Sammons fleece purchase is a pure rip off and is no different from Prime, Trans-Am, CRST and all the rest. If you can find a lease purchase that actually does not do the below criteria, then maybe consider it if you have to.

    READ BELOW! THIS IS FROM THE TRUCKERS REPORT REGARDING LEASE PURCHASES.
    The problem is NONE OF THE FLEECE PURCHASE PROGRAMS WILL EVER FOLLOW THIS:biggrin_25516:.

    Here is a list of some of the things to avoid the most…

    1. Any deal where you pay based on the miles driven. These are the worst of them all, but sadly the most inviting to newbies.
    2. Any lease where the term, interest rate, truck payment, and/or final asking price is not set in stone.
    3. Any lease that does not have a clearly defined payment schedule and a total asking price for the truck.
    4. Any company that does not give 100% of collected fuel surcharge back to its owner-ops, or that does not provide fuel surcharge. This will put you out of business fast.
    5. Any company that does not offer a fuel surcharge that is fairly close to the current average going rates.
    6. Any lease that has no defined ‘cap’ on maintenance or other escrow account withholdings.
    7. Any lease that does not allow you to pay off the truck early relative to what you owe.
    8. Any lease where the interest rate is high compared to the interest rates of other sellers.
    9. Any lease where the asking price, before interest, for the truck is higher than what the truck would sell for in a truck sales magazine.
    10. Any company that does not allow you to take the lease-purchase agreement to someone else for a second opinion.
    11. Any lease that forbids you having upgrades or improvements done to the truck to improve its fuel economy and/or lower its operating costs. It is ok for them to have an ‘Undo’ clause if you fail your lease, but limiting you from improvements is like saying that you aren’t allowed to make a bigger profit. This defeats the entire reason for owning the truck in the first place.
    12. Any lease that limits who does PM and/or repair work to your truck, especially if you are willing to pay for that work yourself out of your own pocket.
    13. Any lease that has large penalties for missing a truck payment.
    14. Any lease that has a lot of long term administration fees.
    15. Any lease that does not guarantee you a free and clear title to your truck at its end, especially if you are willing to make your ‘Balloon’ payment.
    16. Any lease that forces you to pay for a truck warranty, or that forces you to have all work done at the company shop. This is typically a scam to keep taking back the money you have earned from them already.
    17. Stay well away from companies that try to put students or rookie drivers into brand new, or fairly new equipment as lease-purchase operators. These are definitely slave labor companies.
    18. Run like hell as fast as you can away from companies that push their lease-operators to trade their truck back in and start over at the end of the lease. Not only will you end up perpetually leasing, but you will never have a truck to show for it.
    19. Stay away from companies that take fuel taxes out of your settlement pay based on ‘Average’ or ‘fleet wide’ rates. If you are going to be dumb enough to sign on with a company that makes you pay fuel taxes, then be absolutely sure you only pay fuel tax based on YOUR individual fuel purchases only. If you get really good fuel mileage, and the rest of the fleet does not, then you will end up paying taxes on their bad driving habits.
    -Rawze
    Thank you, Rawze!
     
  7. DrFlush

    DrFlush Road Train Member

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    Upstate NY
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    OK, so which of these are the ones that Sammons does? Your going to have to tell me because they don't do any of this stuff to me. I've been here a year and a half, how long were you with Sammons?
     
    Last edited: Dec 14, 2014
  8. MOGLAR

    MOGLAR Heavy Load Member

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    Kansas City , MO
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    Here is an example of two things the do. And there are much more!!

    First, there is that there is NO clearly defined payment schedule. They also do not give the fuel surcharge back to the driver. Sammons keeps it and says they are putting it towards the truck payment. Shall I continue. I have gotten a hold of there LP agreement from a former driver. I cant believe he signed this garbage.

    They WILL NOT SEND YOU A COPY OF THE LEASE TO LOOK OVER BEFORE APPLYING TO THEM! This is a huge read flag. Any carrier that has nothing to hide should have no problem sending you a copy of the lease (or Fleece Purchase) to look over so you can ask questions. Many carriers will let you see the lease even before applying to them so you can review the lease and ask questions. Sammons will not send anything of substance for you to look at.
     
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  9. Rigbuilder

    Rigbuilder Medium Load Member

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    They also won't let you show your lease to a perspective employee. I got my behind chewed for doing it. Shady indeed
     
  10. Rigbuilder

    Rigbuilder Medium Load Member

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    To be frank, I don't give a crap what your momma says. If my post saves just one person from making the mistake I did, then it worked. Enjoy the thread. I'm out. Got good money to make.
     
  11. vangtransport

    vangtransport Heavy Load Member

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    How did it end for you at Sammons Rigbuilder?
     
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