You make some interesting points, Useless. The reason many get into these fleece programs is lack of money and a poor credit rating. You cannot rent a truck from Penske without a good credit rating. Before they would rent me a truck they checked my credit. They will check your credit whether they bill you or you pay cash. It would be be a different way to get started. BC made it work. Others might be able to do the same. The primary advantage I see is that there would not be a long term obligation. Penske will give a better rate when you rent longer term. I am sure Ryder has a similar program. One thing about it, these lease people would not be any worse off renting a truck from an outside source like Penske than they would from the carrier. Penske charges a flat daily, weekly or monthly rate plus mileage. That sounds like the same thing CR England is doing with this program.

 

True, G-Man,

But the CRE Fleece Operator is also having to contend with repairs..... not so with a Penske on a weekly basis. Mechanical problems?? Turn it back in, check out a new one, and keep rollin'.

You do make a very important point that can not be emphasised strongly enough.

You can not build a solid business upon a weak foundation.... there is no "Easy Credit", there are no simple solutiions, and being undercapitolized is trouble looking for a collission point.

Frankly, in today's market, I can't imagine wanting to embark on an O/O venture; but then again, I'll admit that I'm not exactly "O/O Material", even in the most ideal of circumstances. Another point that I think needs to be made is that "Bandit's Cousin" (BC) is not your "average bear".... Jeff is a very intelligent person, and working as a bedbugger, he picked up a lot of "street smarts" in a very short period of time.

 

BanditsCousin also had the benefit of his Dad's experience in the business from which to draw. It is a little different than someone starting out with no personal resources, no money and poor credit. If someone were to go the Penske route, I would suggest they not do it for more than a few months. Personally, I like the idea of making a commitment and going for it. :wink: If you buy a truck with low payments, you can double up and pay the lender the same money you would pay Penske and have a paid for truck in 6 months to a year.

 

Ok - we know how everyone feels about a lease deal where the driver never takes ownership of the equipment. What about a true lease/purchase with either a balloon payment or standard payoff and the driver takes ownership.

My company is small (65 company trucks) and will sell equipment to drivers for cheap (average about $24k for a 6-8 year old truck).

Just something I'm considering.

 

"What about a true lease/purchase with either a balloon payment or standard payoff and the driver takes ownership."

I guess it depends on--among other things--how much the balloon is and if it's affordable (can you do it without financing it?).

Other things: what will the truck need when you take possession--tires (at about $400 each--that's four grand if you need all ten), brakes, an in-frame, transmission or differential work or replacement, upholstery, etc?
Whatever the truck needs (if anything) will have to be paid for. If you can do these things without going into debt, I'll bet you could make it work.

 

I want to thank you all for your comments & inputs. What I was thinking you all have confirmed.
You can't blame one for looking into a lease, but the way to make sure is to ask the experts for thier inputs. I did & you all did.
Good forum to help get to the bottom of a subject.
Thanks Again

MR C

 

The other guys are experts -- I'm not. But thanks just the same.

It's better to ask questions before signing on that dotted line--saves a whole lot of trouble down the line. Thanks for asking. Safe trip to ya.

 

i remember that spencarian and his minus $1000 paychecks
i remember when i started there was new drivers evry where saying how cool it would be to be an owner operator. no clue and im glad i never got on that treadmill.
im off 1 or 2 days a week and 3 weeks paid vacation so go knock yourself out. and that million mile truck aint worth squat so you better trade it in.
i never get a receipt at cfn so i dont know what that fuel costs

 

LP deals are poison..everyone agrees that places like CRE, Central Refrigerated, Swift...etc...all ARE going to screw the driver at SOME point.

What these companies prey on are drivers who are uneducated about being an O/O and operating a business.

There are SOME....very small percentage....companies where several people have bought their trucks at the end of their LP deals and either have no more truck payments and continue on, or, buy another truck like a new one. These companies are generally smaller and interested in keeping their drivers. All of these companies REQUIRE 2 years experience
to even apply.

CRE, SWIFT, CENTRAL are not interested in keeping drivers long term because they have to pay them more $$ to get the same paying load to the dock which equals less money for the carrier. These carriers are not interested in the drivers' happiness, just their own profits.
Places like that have drivers where the average length of experience is under 2 years.

The way Central, CRE, Swift are getting new drivers: They will fleece lease you a BRAND NEW Peterbilt after being a company driver for a whooping 3 MONTHS ! !---all this is ---is a recipie for disaster for the poor souls who get suckered in to signing these LP agreements.

Stay away from large carrier LP deals. You will not be able to buy the truck at the end because they'll choke you at the end of the lease deal...and if you do complete the deal..you will be so behind with your bills that your credit will be too low to find financing.....they get the truck back again......you lose everytime, they win.

 

NEVER NEVER NEVER EVER EVER EVER

Lease a truck from the same company that dispatches you......