Jeremyh, I have no idea of why he thinks there are some good lease purchase programs, unless he is talking about a true lease purchase from a leasing company. I have looked at many lease purchase programs at various carriers. I have yet to see a good one. However, I have seen some leasing companies where you can lease purchase a truck for a little higher rate than you could buy one from a major lender. These are two entirely different animals. With most leasing companies you will still need some money to pay down. Most leases will require the first and last month's lease payment. Some will require the first 2 and last or something similar. There could also be some other fees which the lessee could be responsible. The problem with leasing from a leasing company is that you will usually need to have somewhat decent credit. There are a few who specialize in marginal credit, but you will pay a premium for them to underwrite the business.

 

but the key to him was, he WOULD own a truck when all was said and done and that was his goal

That may be his Dream but the odds are against him. Most lease trucks are bought and sold many times.

 

Most of the guys that are signed on with my carrier are doing lease puchase deals. I would say 95%. I am not one of them. I have been driving for 20 years and have done many diferrent things over the years.
I finally became an independant contractor ( pretend owner operator) as I felt I knew enough about the industry. I chose to lease on to a company. I purchased a decent used truck knowing full well if it did not work out I could go somewhere else or sell truck, or try my own authority. I have learned a lot in the short amount of time being on my own. I will be well prepared to go out completely on my own with my authority, when the time comes.
The guys that lease from my company have a $410 a week truck payment with .10 cents a mile maintenance charge. They have a payment of about $2000 to $2500 after miles. (Low mile runs.) It is a 5 year lease with a 5% buyout, comes to about $10,000 when the time comes. That's about a $20,000 difference compared to buying and financing at 7.99% That's not to bad considering all maintenance is covered on the lease for 5 years.
But,
Anyone can buy a good used truck and run for at least a $1000 or more less a month. You must save your own maintenance money though, keep that in mind.
I will say that there is one guy I know of that has finished his lease and bought the truck. It is that few because so many guys come on and last about six months. Nobody ever sticks around. They realize that they are making less money then a company driver, and without benifits to boot. This is with a fairly cheap lease payment also. Most lease payments are around $700 a week.
Some may do alright. Not many. I am doing ok, because I hooked up with a low mile, dedicated run, and my expenses are much less then the lease guys.
My carrier will not be signing a new contract with the account I am servicing and I will be getting my own authority next year.
I hope some of this info will shed some light on some answers for some of you.

 

Thank you everybody! I think I get the point. As far as having bad credit, my credit is fair. As for the person that leased from Arrow I couldn't get home even after 6 weeks, to go to my best friends funeral! That was the last staw. I quit! But thats another story. I've just been run around so much I thought Being my own boss might be a fix all, but thanks to all of you I'll just keep looking for a company that will treat me right. I've asked some of these questians to drivers at different truck stops over the old c/b but all I heard ( as you can imagine) was how much of an %^**^% company driver I was thinking I could do any better than I am now , or, (only drivers with brains like some of us can make a go of it.)
Thanks again!

 

half of these people who write on these boards are low mile runners for companies,!!! If you lease or are a owner operator you will make (earn) more money then a company driver!!! Unless your an inexperienced driver that wastes fuel and not thinking as an owner of a company.... Companies wont lease you a truck to fail, because then they fail and lose money, so dont let these wanna be truckers who failed as a trucker talk you out of owning or leasing on with a company! Why run the same amount of miles for 800 dollars a week when you can run those same miles for 1500 dollars a week with a little bit more responsibility with your own truck!!! Be business smart and be succesful.

 

I take it you are leasing a truck? If you knew anything about running a truck you would NEVER get into one of these fleece programs. The numbers simply don't add up. I have yet to see one that is in the best interest of the driver. They do make money for the carrier. The carrier has someone to pay for their truck, pay no benefits to the driver, and make a tidy profit. In the end, the carrier still owns the truck. The lease operator is responsible for all maintenance. It is a great deal for the carrier. You won't clear $1,500/week if you lease a truck. Their pay is usually low and costs are high. If you think they are such a good deal, perhaps you could enlighten us. Post your numbers. I would gladly go along with one if I looked at one that was a good deal for the lease operator.

I have owned several trucks. Not leased.....OWNED!! I have also been around this business since the early 70's. I have spoken with 3 people during that time who have successfully completed one of these programs. On the other hand, I have met many successful owner operators who have paid for their trucks.

You see, there are no real shorcuts to becoming an owner operator in this business. If you are serious about being an owner operator, you save your money until you have a good down payment or can pay cash for your truck. Yes, you can save enough to pay cash. I see you are new to this forum. I paid CASH for my first truck and trailer. There are others on this board who have done the same. It takes discipline. You don't have to pay cash, but will need a good down payment. Most who become involved in these programs have poor credit, no money and little experience. Carriers won't publish their statistics on these programs. There is a good reason. They have a very high failure rate. I spoke with an individual with one carrier who does a lot of these programs and was told they lease the same truck 3 times, on average, before anyone completes the lease. To me, that is not a good track record.

 

I will add that out of my location about 8 of 15 guys have left and been replaced, in just one season. They are leasing the same trucks to the new guys. The company gets the truck paid for many times over. New drivers are taken on when it is busy. Slow season comes and these drivers are making $300-$700 a week after all their expenses. Then they leave because they are going broke and owe to much in back taxes because they didn't figure that into their expenses. Then comes in the happy new drivers. This is with my carrier. I am posting my experience.
What's your's?

 

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knighton5