Thinking about going lease purchase..any feedback appreciated

The biggest trick with lease purchase is KNOW WHAT YOU'RE GETTING INTO, and make sure you're okay with how things work. For instance, after doing my research, I knew that certain things would be true about the program I'm on.

If I want to purchase the truck in full, it is going to be way beyond overpriced. I know this. I also have no intention of buying it outright. The way I see it, I'd have to pay a monthly lease on a building if I opened a brick and mortar store somewhere, so I look at it as the same type of business expense that other business owners have. Every few years, I'll upgrade to a new model of truck and stay on top of technology as well as always have a warranty. I know all of this, and I'm perfectly fine with it. There are many others who wouldn't be, but it does not bother me.

I also know that since I don't own the truck, I can't just do whatever I want. For instance, I can't install a Tripac APU , I have to stick wi the ParkSmart. Again, that's fine with me. Anything I add to the truck that involves drilling holes must be left in it when I leave it. That's ok with me too, the only drilling I do is for cheap stuff like a CB Mic holder, TV mount, etc.

I know that since I'm picking and choosing my own freight, it is MY responsibility to make sure that my business generates a profit. I can't blame the company for failing if I sit on my butt for a week and then wonder why I'm not making any money. There is plenty of freight out there, even during this slow time. There will be times I might have to haul a load that pays less than my ideal amount. That's trucking.

A lot of this is doing your research first, and making sure you're okay with the way things are done at your target company. If there is ANYTHING you don't like the sound of, WALK AWAY AND FIND SOMEWHERE ELSE. There are many drivers out there who think I'm crazy for paying what I am for this truck and doing what I'm doing. I don't care - they're not paying my bills or running my business, I am. Just because someone else doesn't like how it is here doesn't mean I won't. Choose what is best for YOU. But do your research... Because these guys on here that are saying that lease purchases are not designed for your success are generally right. Find that diamond in the rough.

In my case, even though the finance company is owned by Schneider as a whole, the finance company and the freight side do not interact with each other. My company contact, the ICA, does not control anything related to my business, nor does he have access to anything related to it other than "Am I making my appointments on time?". Any failure here is completely on me. I'm fine with all of that.

Again, good luck and do your homework.

 

At a years experience all you have learned is enough to be dangerous !!

You do not know enough to be teaching another new guy didley .

It has been said before and I will say it again you cannot teach what you don't know .
At a years experience there is more that you don't know than you do know .

Things like a new guy can do more damage in a week than you can pay for in a year!!!
Things like leasing a truck does not make you a owner anything .
things like your company is not kissing you because they love you they are kissing you because they are effing you .

Good luck to you what ever you decide to do . But one last little tid bit to try to help you out here ..... Trucking is tough enough try not to make it worse by jumping into things before you really know what it is all about .

 

I agree with the 5 year minimum for training. Hell at crst it's 6 month requirement as long as you've driven in winter! Dangerous...

 

Hi there,

since this is my first post in this forum, I want to introduce myself.

I came to this continent in fall 2007 from Germany after driving 7 years in Europe. I'm still with the first carrier out of Winnipeg and for the last 2 1/2 years as an O/O.

I for myself always considered driving a truck with less than 5 to 6 years is just driving a truck. Experience starts to build up after that time.

Looking at some user's years of experience stating 33 years or more is still growing goosebumps on me, I have a hell of a respect from those drivers. Talk with them and they still tell you, they're still learning.

Thinking about to run your own business after one year driving a truck might be foolish. Never ever let somebody else drive your truck (leased or owned) except a mechanic for a test drive. It's your asset which is possibly damaged or abused by an even more unexperienced driver.

Trucking companies which offer leasingprograms don't offer this to you because you're such a nice person. NO It's a provit for them. They can keep their numbers up at the dealerships while they don't have to worry about maintainance. You pay for maitainance while the carrier is still the prime owner.

If you really want to get a step in the ownership, get a few years under the belt and save some money for at least a downpayment and get the truck financed your own way.

 

Dear Sir:

If you've been in it for only a year you might try to hang in there a bit longer, as a company driver, before trying to transition to being an owner operator.

How much longer?

It's really hard to say but from experience, I know that being an owner operator has a much steeper learning curb and your initial investment is so substantial (often thousands of dollars) even buying used. That's why I'd recommend at least 4-years in a company truck (or working for an O/O) while averaging your 2000 miles per/week (about what most companies give you). That will be the minimum in actually preparing your for what you are going to be in for, as an owner operator.

It does not, however;take into account the business aspects of things and or the training that is required to be successful but master the driving angle because it is important.

In relation to what I said above, take that 2000 miles X 52 weeks, which = 104,000 miles per/year (as O/O's we used to run 120,000+). Take the 104,000 miles X 4-years, and it comes out to approximately 416,000 miles. That is assuming you are averaging 2000 miles during the 7-day work week that you are out on the road working, versus sitting somewhere while waiting for a load or laid over.

Then you have to figure that since there are 364-days in a regular year, and you can figure that you will be actually working only 312 days out of the year, with 52 days off (at home), assuming that you get 2-days off for every 14-days out on the road, which is your down time. If you drive more than 2000 miles per/week, then you will have more miles accumulated in that period of time thus more over the road miles (experience), which is important in owning your own tractor/trailer.

The best way of getting to be a successful owner operator is to try in go to work for one and get them to teach you the business from the ground up. If you get half those miles with an O/O you'll be far better prepared to handle the rigors of owning your own tractor/trailer making it much more likely that you'll survive that first 18-months, which most don't.

What I've told you comes from my own personal experience and also what I recall being told nearly 30-years ago when I was a young man by a couple long time O/O's that I had worked for after coming into trucking. As a matter of fact, the first one told me to always by a new truck if you could swing it, and then to make sure that I stashed a nickel per mile for my tires, brakes, and maintenance fund so I wouldn't be completely buried by those expenses as the miles rolled up on my equipment. He also said to run under my own authority and to get into a position where I could pay cash for my fuel because of the deep discounts that were offered and that you could avoid expensive fees on fuel cards and back then on com checks as well, etc. The last O/O, I worked for said that it was OK to keep a credit car or com check for an emergency, however. The last thing that the other owner operator taught me was how to keep good records and handle my paperwork. His theory was if you owed more than one truck that you should own them in sets of threes, because one would basically pay nearly the entire expenses on two during a normal operating year. I asked other O/O's and many of them agreed.

The last thing that I picked up, and remember is that when you're and O/O your time is very valuable and you are solely responsible for how it is managed. There is even more competition today (go to Quick Transport Solutions.com) and you can look up nearly any trucking company in any state, city or small town, because unlike when I started back in the late 1970's, when there were just over one million big trucks out on the road, as opposed to today where that number has more than tripled.

In my time a lot of those truck were O/O trucks but that has changed where today, as an O/O you will be hard pressed for freight especially when you first start up, which leads me to my final piece of advice.

Find a good reputable company to lease on with that will give you consistent miles and reliable good paying freight, along with fuel incentives and bonuses for economizing fuel meeting safety goals, etc. If you have your own authority, you are pretty much in the driver's seat today, and if the company agrees to pick up part or all of your insurance or offers to help with fuel taxes, pays a percentage of your road use taxes, and you're getting approximately $1.25-$1.40 per/mile, then you can survive provided your truck payments are reasonable especially if you didn't buy used and when you do be aware of the limit on how old a truck can be, which varies from company to company.

Lastly most O/O are banking around .15 -.17 cpm for maintenance, etc., so what I think I would do, in this age of higher fuel prices, is try to get on with a company that offers a solid fuel discount so you don't go broke trying to keep fuel in it or end up sacrificing your power/speed.

Silverdollar79

 

Some #### good advice here. Read this post then read it again and bookmark it for future reading. He's got some tips here.

 

Subscribing

 

You ever hear the phrase "The path to Hell is paved with good intentions"? Same goes for trucking and the "path" to being an an owner operator or trainer. Recruiters and some of these "mentors" paint such a rosy picture. Truth is that it's not rosy. Or easy. Especially for new drivers. You guys get these visions of big money and chrome. Lease purchase only means you're paying for your job. And it could easily ruin your financial stability and credit if you don't know what you're doing. Think about your path to hell.

 

Yeah, you ain't kidding. Nothing easy about it. It's not just signing onto the load board and grabbing something... every single thing you do requires thought and planning. My brain smells like bacon after this last couple weeks LOL.

 

You have to learn what your cost is to MOVE the truck no mater if it is loaded or empty. You can do that with the truck your driving now. You have to figure in the insurance -IRP,Ifta,maintiance,insurance,MPG, road use tax, tax prep, FUEL,payment,tire -- all of it! with all that does it cost you .85 cents a mile--etc . That way you will know what you have to get per mile for cost. Then add a little for the unexpectd expense. You will need an EIN # and it best to get incorporated or an LLC.Also a good tax person . Just a note- You really need as close or over $2.00 a mile. NOW that is my opinion for I am sure there will be some that will say diffetent --