The devil. aka “lease purchase”

Discussion in 'Lease Purchase Trucking Forum' started by Gabe2790, Jun 16, 2021.

  1. 228I10

    228I10 Bobtail Member

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    Jun 8, 2021
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    In my opinion, most carriers use the lease purchase program as another income stream. If you can't secure the following in your contract, run away.

    1. Reasonable payments -payments that would be the same or similar to a financed purchase, plus a finance charge not to exceed 12%. Payment should be monthly and paid by you, not taken directly out of your settlement unless you choose that option.
    2. Reasonable trailer rentals, paid monthly.
    3. Reasonable insurance costs with no markup. (Carrier should be taking on operators with good driving records to keep insurance rates down).
    4. 80/20 split, preferrably an 88/12 split.
    5. 100% fuel surcharge.
    6. Be able to self dispatch using company load board, plus any additional load board that you subscribe to.
    7. Maintenance discounts, tire discounts, fuel discounts, etc.
    8. Be able to take your truck to another carrier anytime you want.
    9. You decide your home time.
    10. Free ELD installation and minimum monthly subscription payments or free.
    11. Weekly settlements.

    For the most part as an owner operator or lease operator you're paying the split (88/12, 80/20, 75/25, etc) to run under the carriers DOT / MC. And if you choose to have them dispatch you or not. IMHO 12% for that is more than fair, you're paying for everything else (taxes, insurance, fuel, tires, maintenance, roadside assistance, tows, health insurance, dental, etc.)

    After 21 years of driving, and roughly 10 years of being in a different line of work, I'm looking forward to getting back in it as an owner operator. A lot has changed so I'm doing my homework prior to jumping back in, but looking forward to it come 1st quarter 2022. Depending on what the Biden administration has in store for us will probably influence my decision.
     
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  3. Gabe2790

    Gabe2790 Light Load Member

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    Hey man, you find a lease purchase that offers all that you can send me the info. I’ll sign up on the spot!
     
  4. Roguefox

    Roguefox Light Load Member

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    Another person hung up on a percentage and not the actual dollar amount paid. Percentage doesn't mean crap, the amount of money you bring home is what matters.
     
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  5. Gabe2790

    Gabe2790 Light Load Member

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    Do you base it off of TTT in per mile?
    What is an acceptable week for you?
     
  6. Roguefox

    Roguefox Light Load Member

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    Everyone's expenses are different so thier minimum rate is going to vary as well. All that being said if you aren't averaging $2/mi for all miles right now you are really screwing the pooch.
     
  7. Atlanta trucker

    Atlanta trucker Road Train Member

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    To me its just like drugs.
    Some can try drugs and it doesn't bother them. Some try drugs and they lose everything and there lives go to hell.
     
  8. MiketheOTRCar-Hauler

    MiketheOTRCar-Hauler Bobtail Member

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    You have way too much faith in people that stand to make a huge paycheck off of you.
    When I applied for CR England years ago I could tell they were trying hard to get me to sign a lease. They were so good at letting you sit in the trucks, and get that smell of leather stuck in your mind. Thought I was dreaming It sounded great, and I almost signed one.

    Until I thought about how much more they would need to keep company trucks moving that they’re paying everything on, and making about a 70-80% load profit. Versus leasers who are solely responsible for their truck payments, and making maybe 20-30% load profit. Common sense told me there’s no way they’d keep me on the road as a leaser. They’d stand to lose too much money not giving great loads to company drivers. I’d be paying to live in this thing.

    Then I thought about the cost of fuel, oil changes, and tires. Even though they pay a percentage of the surcharge. The math added up to be about the same as a company driver. Only there’s no headache as a company driver. They pay all the fuel, and everything else. You just plan your trip around traffic. However I decided to calculate how long I could plan to save up to write a check directly to Frieghtliner or Volvo, and get a $50,000 loan for the rest. My math added up to be less than 5 years at the rate I was going with my new company (at the time) Crete.

    My Black Prostar’s A/C died on my way to Brownsville, TX. There I met a driver who worked with Landstar he showed me the load board. I couldn’t believe it when I saw a $12,000 load going from somewhere in South Texas up to Canada! That’s when I knew I needed to become an O/O in the way of saving money to buy directly from the manufacturer. Forget Trucking companies & dealer’s that might go out of business.

    Unfortunately I decided to quit trucking before getting there. So I could get married, and play. However I just got back into it, and going the route of car-hauling. Assuming I can keep on not damaging anything, and keep my safety bonus piling up. I can get there faster than ever! Glad I weighed everything, and decided leasing wasn’t for me. Now I’m almost ready to buy outright. Definitely the better route! I’d offer the same advice to anyone don’t trust your financial well-being to a company that has everything to gain by you sitting in favor of company drivers getting the best loads!
     
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  9. Gabe2790

    Gabe2790 Light Load Member

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    Thanks for sharing your experience Mike! I agree that CR is probably not a place I would want to lease from. I may learn the hard way, but I believe that not all companies are out to screw lease drivers. I have talked to a few that lease with the company I’m going to; one lady for 26 years. I’ve seen countless settlements that back up their claims.
     
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