Lease Purchase Or Stay A Company Driver?

I've heard that the trucking companies you sign a contract with will try to pressure you in to a lease purchase program at orientation. I'm sure many people have different opinions on this matter but what are the pros and cons that new drivers need to be aware of if they decide to go that route?

Renegade, we have a policy here of not really talking about leasing or buying trucks anymore because we feel quite strongly that no one that's new to this industry should start out buying or leasing a truck, and that's almost everyone on our website. You should have a minimum of a year or two under your belt before you even consider such a thing.

We've had a ton of conversations on the topic. You can find some here:

Topics Tagged 'Owner Operator'

Topics Tagged 'Leasing A Truck'

Although they may mention it a time or two it's pretty rare these days that a company will actually pressure you to lease right out of the gate. Even up until two or three years ago there were several companies that were doing that but they finally accepted the fact that it ends pretty badly for most people who try leasing when they're brand new. So I wouldn't expect you'll be pressured into it by anyone.

I've heard that the trucking companies you sign a contract with will try to pressure you in to a lease purchase program at orientation. I'm sure many people have different opinions on this matter but what are the pros and cons that new drivers need to be aware of if they decide to go that route?

Maybe you "heard" this, but the pressure ain't necessarily so. In my company school (Swift) the concept of leasing/ owning your own rig never came up. TT's Trucking Company Reviews may help you find that out.

How do you end up as a lease op with 1 million dollars in the bank in 10 years????

Start with 2 million and work really hard!

Q. What's the second happiest day of your life?

A. I leased my brand new Peterbilt!

Q. What's the really happiest day of your life?

A. I turned in my Peterbilt and didn't have to pay any settlement!

I'll just put this out there. TransAm will push very very hard for you to lease right out of the gate, student or not.

Stevens Transport will also push you fairly hard to lease.

As mentioned above, no matter what, don't do it for at least a year. You don't know enough yet.

TransAm will push very very hard for you to lease right out of the gate, student or not.

Stevens Transport will also push you fairly hard to lease.

Thanks for letting us know that you guys. It's a shame there are still companies that do that with new drivers.

But to anyone that's new, don't fall for it. And I promise you, if they really want you to lease their sales pitch will be spot on. They'll go on and on about how much more you're going to make, they'll bring in other lease drivers to brag about how much they make - it will start to feel like leasing is the obvious choice. Ignore it all completely and just focus on being a company driver and learning your trade.

Some companies will offer and pitch, multiple times. Some will push and attempt to pressure.

Unless you are in some kind of position (bad hiring area or the like) where you had to agree to lease as a condition to hire on - then you are under NO OBLIGATION to do so - no matter how they "hard sell" the idea. Usually this isn't going to be the case.

I believe John Christner is the only company that's 100% leasing - where there are NO COMPANY DRIVERS - everything is a lease or O/O. But you know that GOING IN. And they also don't do training, or take recent grads - so a new entrant to the industry (which is who TT's focus is towards), isn't going to be going with this company anyways.

Usually the guys that are going to pitch the lease, are the TRAINERS. I don't know (as in: haven't heard in a verifiable manner) whether they get paid a referral/commission for getting a trainee to sign on as a lease driver. So if there's a "hard sell" going on, it's typically coming from the person that has you as a "captive audience".

And typically - the only folks that are making marginally more than just a company driver or the average "solo lease driver" (in the form of take-home/net) ARE THE TRAINERS - due to the additional miles of running a team truck (which also means more tire/maintenance overhead) and the bonus's/incentive pay they get as trainers. And sadly - many trainers BECAME TRAINERS SOLELY FOR THIS REASON - to make $$, which doesn't always make for the best motivation to BE A TRAINER (or the best training experience for the trainee).

ANY WAY YOU SLICE IT - as Brett and the rest of the guys will always tell you - DON'T FALL FOR IT - NO MATTER HOW ATTRACTIVE THE PITCH IS.

Focus on your driving skills and learning the industry.

There are RESPECTED MEMBERS HERE - that are/have leased. They don't discuss it, out of respect for the board policy.

EVEN THEY WILL TELL YOU NOT TO DO IT - right out of the gate.

Rick

Prime asked me ONCE if I wanted company or lease... In order to assign me a truck and dispatcher. My dispatcher only handles company drivers so if we went to lease he'd lose drivers and money.