Want to go O/O, what should I look for??

First off, i apologize in advance for starting yet another O/O thread. I know there are 100 of them out there, but I didn't know where else to really post this.

To start off, I've been driving since mid-2008. Since starting, I've really wanted to go O/O. I know in order to be profitable, you have to run the truck as a business, and all that jazz. I wanted to pick the brain of drivers who currently are O/Os or ones who have been in a "lease to purchase" deal, etc. and find out what to look for, what to ask, what to demand in the contract.

The company I work for put out what I think was just a sucker deal, so they could get out from the debt of trucks just sitting around, and getting newbie drivers who qualify to take the burden of paying for the trucks on their shoulders.

It was a short term lease program (enrollment has ended, i thought about, but never signed up) lasted 9 months, and you had your choice of truck on the lot. No one was over 3-4 years old, or over 300,000 mi. Friends of mine who went thru driving school with me, enrolled, and got a 2009 T2000 with 30k miles.

But here are the particulars of the lease. It wasn't a "lease to purchase" it was just a straight lease for 9 months. after said term of lease was up, you that the option to continue the lease (if the truck was still available) or to lease another truck, OR to get rehired as a company driver. Payments were $450/week, you had to pay for qualcomm, service bond, insurance (personal and vehicle) and fuel. The lady in charge of O/O division told me that about 1500 mi a week would be required to cover the cost of operating the truck. The company would pay 92cpm, and require 0.06cpm to be placed into a 'maintainace' account. The gal told me i would be bringing home anywhere from $700-1000 a week. But i told her that i was getting 2000 mi a week. And asked about a guarentee on miles, she said there would be none. So i could sign this lease, lose some miles, and only be bringing home $100-150 a week. I said unless i was already getting 2500 mi a week, and the new DM i would get, could tell me with a straight face their drivers were getting 2500+ mi a week, i might have done it.

What made up my mind basicly, was that it was just a lease. It wasnt a 'lease to purchase' or anything. I was basicly making their truck payment (which i am sure the company bought the trucks outright anyway), and my payments weren't going toward 'owning' the truck. Not to mention from the miles i was currently getting, i would be making about the same amount being a co. driver and being an L/O....only differance would be the added risk of losing $$ if i had a serious repair job with the truck, getting enough miles to make it worth while, etc.

So I guess I am asking, what should i look for in a 'lease to purchase'? One thing i asked the lady was what if i were to go out and get a truck from a 3rd party, and lease it on with the Co. and she said that they wernt doing that at the moment, only leases with company trucks (which i can understand). Someone told me that if the company requires use of a QualComm, they should pay for it, not the driver. What all is negotiable, etc.?

sorry for being a bit long winded....

 

Go Here: http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/13608-so-you-want-own-your-own.html

 

So I guess I am asking, what should i look for in a 'lease to purchase'? One thing i asked the lady was what if i were to go out and get a truck from a 3rd party, and lease it on with the Co. and she said that they wernt doing that at the moment, only leases with company trucks (which i can understand).

Well if you can understand this then you wouldnt even be concidering this why do you think there not accepting them,,, because they loose the control over you,,, they allready know your going to loose in the end and they get to keep the truck and in essence sale it again and again this is how they make MORE money, Dude lease purchase from trucking companys is a RIPPOFF!!!!





Someone told me that if the company requires use of a QualComm, they should pay for it, not the driver. What all is negotiable, etc.? Everything is negotiable but are they willing to budge on anything,,, H E double L NO,,, theres a hundred other guys like you standing in line waiting to be screwed and until demand for drivers changes and there becomes a shortage of drivers,,, negotiating is useless.

 

There has got to be a GOOD lease to purchase program somewhere a company, a GOOD company has on the table. I'm simply asking 'what to look for?'...i'm not asking 'what do you think of L/P programs'.

And actually, i was never 'in line'. I thought about it, and did my homework, but like i said, the idea of making a truck payment that gets me nothing, is like paying $600 for rent each month. its 100% interest with nothing to show for it.

What i plan to do, is after i get a year in, and IF the economy is better, right toward the end of that year, go get my own truck thru a 3rd party....then either lease it on to the company i work for now, or head down the road.

Ron...thank you for that link, btw.

 

They say $450 a week because it doesn't sound as bad as $1800 a month . If you're convinced there has to be a good lease purchase program I've not going to try to convince you otherwise . The crucial thing is getting miles . Many O/O's are only getting half the miles they were getting last year . You really need to research what you can realistically expect to get for miles .

 

no there isn't a "good" lease purchase. they whole reason behind there existance is to make te copany more money so why should there be a good one?

the "good one" is buying a truck and finding a company to lease it to.

 

Okay, another direction i was thinking about while considering this lease deal, I thought about going to a 3rd party, a KW dealership or a Peterbilt and the like. But the company told me that they weren't taking on any outside trucks to lease. which i can understand...they want to lease their trucks first.

NOW for the question....with the economy in the tank like it is, and seeing how many car dealers are trying to do anything to sell cars, what are the odds a truck dealership would accept a driver who already has a driving job, but doesn't have that great of credit?

I've been told, if i can buy my own truck, I should get payments around $250-300 a week. (alot better than $450).

this this possible?? or am i just dreaming, and snuff out my pipedream of being an O/O?

 

How bad is "not that great" credit?

Where I bought my truck, they said they were much more able to help someone with experience and rough credit than someone with good credit and no experience. That's for conventional financing. There's also a few places that do no credit check, but you will pay a lot, like $45k for an '02 Columbia over the course, and 5k down. Even regular banks have gotten into GPS placement on financed trucks to repo them easier, so there's some wiggle room getting into the deal.

I would try independant lots instead of major dealerships. A lot of them will finance you inhouse because they can't move trucks right now.

 

Ok here goes reality.When u say something like not good credit,that tells me you've made bad decisions and not been responsible or not listened to good advice.And when u can search the forum and see for yourself the horror stories of these great lease purchase deals and think no not me I'm to sharp,I've read all the books on trucking.What do these guys know who have been O/O for decades,through good times and bad.But remember this THERE ARE NO GOOD COMPANY LEASE PURCHASE DEALS. All failures started with good intentions.