watch what you do.

Glad to see another old timer here! I've been trucking since 1979 and my husband Paddy started in 1976. We owner op'd OTR and now run a dump truck business. 1 truck, another one on the way. Maybe 5 trucks or so in 7 years time. You're absolutely right in everything you say about trucking. Welcome aboard!
Julie
:smt059

 

Hey, Skeezix.
Just read this post yesterday. Hope if/when I finally get out on the road I can be a good rep for the industry.
Your comment about the lease/purchase option interested me, because, as a total newbie, I've been going everywhere and researching everything and I come across ads like the following all the time:
Description:

40 CPM and WE pay fuel, ins, plates, tolls, etc. Own your own truck in ONLY 2 YEARS without making a single payment!
Employment Offered: Company Driver Reefer
Pay Info:
Hiring State: AR, AZ, AL, CO, CT, DE, DC, GA, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, NE, NH, NM, NY, OH, OK, PA, RI, SC, TN, TX, UT, VT, VA, WV, WI
Min OTR Experience: 24 Months
Solo/Team: Solo

This ad (I've not included the company name on purpose) states in black and white that you will own your truck in two years without making a payment of any kind including fuel or tolls. How can they do that? If they can't do it, how can they say it?
I got the ad off a website that I'm sure many veterans as well as newbies visit. Seemed a reputable place to me, so I wondered about the validity of the ad. Thoughts?

 

I would like to know the answer to this question as well? I must admit up front I have no intentions whatsoever of leasing or buying a truck, however I am curious.

 

At two years, it is not going to be a new truck you lease from them, or recieve after the two years. More than likely it is an older group of trucks that have milage too high to make for a viable trade-in. So you take the truck, drive it for two more years, drive the last of the value out of it. Hey, there is your truck. Enjoy!!! It will need a complete rebuild.... of EVERYTHING. But hey, it's yours now.

How much of that 40cpm is going for escrow, maint', or other fee's they can create? Is it forced dispatch with a bunch of crap loads?

You admitted you aren't out here, and it show's. No offense is intended, but you really need to listen to the oldtimers here. You are new, don't know anything about the industry, and you are making the first mistake/ biggest mistake you can. It is the one mistake that companies like all of these big companies count on you making.

You are reading and believing the ads/ lies.

We have all been suckers, we have all been lied too, and we have all learned from it. You have the benefit of our experience, use it. Call the company, get the info, post it here, and ask questions. As many questions as you like. Just don't be the next sucker.

Ask if they will send you a copy of all of the paperwork regarding the truck plan, and take it to an attourny, and a big truck mechanic. Find out what is going to break down, how long it will last on average, and what you are legally responsible for.

 

Hey, BC.
I didn't figure that these things were on the up and up, and for the record, I have no intention of even looking into one of them myself. Just curious as to how they figure they can put stuff out there like that if it's not strictly true, and what it does really mean when you strip away all of the BS. I'm not an idiot. At least, not a complete one. That's why I put the question out there for the old-timers to go over. I already know I don't know anything yet.
Thanks for the input, by the way. It all goes into the "toolbox".

 

Not a problem, maybe I am the idiot. lol.
The way I interprited your question was as the bright eyed newbie, and was trying to gently, yet firmly slap the reality into you. lol. Not intended to offend, just firmly inform incase you were tempted by the ads.

They get away with it because they are not posting the actual contract, just the end result if everything works out perfectly. They don't show the actual contract, and all of the escape clauses, built in outs, and legal take backs they have. They don't tell you what the truck is, how old, or any of the requirments placed apon you, in order for you to actually get the truck.

As long as it is in the actual contract, and you are given the ability to read it, not the time, just the ability to read it before signing, they can say whatever they want in the ad. As long as there is the ability, regardless how difficult it is to achieve, to complete the lease/ 2 year term of the give-away, and it is in the fine print of the contract, it allows them to print the ad about the 2 year give-away, without the fine print. The contract is the only place they are legally bound. The rest are just voluntary ommissions from the ad. Ethicly improper, but legal.

 

Hey, BC.
Thanks for the response, and don't worry about my perception of the first one. I understand where you're coming from.
I hope someday to be able to view things from your perspective. God grant that I live long enough. Old as I am already, that may take some doing.
You've pretty much cleared up this issue for me. I thought it sounded too good to be true, especially given what Skeezix posted, and from what you've said it is exactly that. Too bad. It would be a great thing if it came off the way they make it sound instead of the way it really is. Ah, well. Reality bites. At least I'm forewarned and haven't signed anything I'd regret for years down the road. That'd REALLY bite.
Thanks again for the advice.

 

I see a couple of red flags right off the bat.

The ad states nothing about the upkeep of the truck, which you will have to pay for. I also see nothing about driver pay above and beyond the .40 cents per mile.

If there is no driver pay, then you are lost to begin with. There are quite a few drivers who make over .40 per mile driving a company truck.

How about heavy use tax, fuel taxes, book keeping, income taxes. You know you are now an independent contractor, so you owe self employment taxes also. Don't forget about occ. ins. and/or workers comp.

Little things are always going out on trucks. Little things consist of .50 cent light bulbs, to a new alternator to the tune if $500.00 or more installed, if you don't know how to install it yourself.

Who pays for oil changes? They are not cheap. Flat tire? New tires? You need 3 to 4 thousand for them. Brakes need replacing? Around $125.00 per wheel. There are six of them you know.

This is a lot to pay for with .40 cents per mile, and that is not near all of the expenses.

I notice they did not mention what year, or how many miles on the truck, or even what brand.

When you sign a lease you are their slave. They know you have to make weekly payments, and they give you just enough miles to keep you from making any money, but enough to keep you from going broke.

That is if you don't have any major repairs, or a lot of minor repairs, or an accident, or do anything like actually go home once in a while. The truck ain't making money if it ain't rolling.

Even if they pay for every single expense of the truck, you are still not going to come out. But, they will never pay for everything. It just sounds that way to people who have never owned a truck before.

You have all of the responsibility, and none of the freedom. What happens 1 1/2 years into the lease and they start shorting your runs, or you get mad and want to leave? You can't take the truck with you. It's not yours, you only lease it. Do you leave and lose everything you put into it, or do you stay and go bankrupt?

NEVER, NEVER, NEVER SIGN A LEASE PURCHASE, OR ANY OTHER KIND OF A RENTAL LEASE WITH A COMPANY!!!

 

Seems like it's pretty much unanimous; companies who post ads like that are basically sleazy, and we should avoid the whole deal. They rank right up there with telemarketers and spammers.
Thanks, everyone, for the clarification on how they can say what they say. And, more importantly, what they don't say.