Not A Standard Lease Purchase

Topic 22841 | Page 1

Page 1 of 1
James J.'s Comment
member avatar

Hello all. I’m 8 months into driving and I’m not looking at going anywhere else yet. I’ve been doing a lot of research on purchasing and lease purchase etc. I’ve read a lot of negatives and I understand all of them. However from my searching I believe I’ve come across a lease/purchase company that is different. They offer 80% of the load to you. They are only O/O and lease purchase company, no company drivers to give loads to. And the other thing I found that I thought was huge is you can book your own loads. Wondering if anyone has come across a similar opportunity. Right now I get a percentage of my flatbed loads as a company driver and am grossing between 1500-2000 a week, home every weekend. So I’m not looking to jump ship unless it makes sense. Any input would be appreciated.

Brett Aquila's Comment
member avatar
However from my searching I believe I’ve come across a lease/purchase company that is different.

Welcome James. I had to laugh when I read that because that's always the core theory behind every decision for anyone that has ever become an owner operator or lease operator. They all think they found that one magic opportunity that's different than the 99.9% of the opportunities out there. Somehow it's that one diamond in the rough that's going to mean fantastic success.

No, this is different because:

  • I'm going to pay cash for my truck so I won't be in debt
  • I'm going to book my own loads
  • I'm going to do my own mechanical work
  • I'm working for a company without any company drivers
  • I'm only going to haul in one particular region of the country
  • I'm not going to lease the truck from the company I'm hauling for

........and on and on. Everyone has that one idea that's just way better than the rest.

I’ve read a lot of negatives and I understand all of them

To be honest, you're still thinking about leasing a truck so you don't understand all of them just yet.

The bottom line has been the same for almost 40 years, maybe more. The average profit margin in trucking is 3%. Over time that's what you can expect if things go really well for you. You'll make 3% more than you would as a company driver. Of course for at least half of the people out there it doesn't even go that well, and for many they wind up in a complete financial mess.

There's just very little upside and a huge downside to it. Stick with being a company driver. If you want to own your own business don't choose a commodity industry like trucking or farming or convenience stores. You have to find something where you can really differentiate yourself. Trucking just isn't it.

Now our policy is not to talk about leasing or owning trucks because it turns into a big fight every time. So we're going to end this conversation right here. Do a search in the search box at the top of the page for "leasing a truck" or "owning a truck" and you'll find tons and tons of conversations about it.

Basically my advice is to keep doing your research until you've determined that buying or leasing a truck just isn't a good business opportunity. Then you'll know you understand the situation well enough.

Owner Operator:

An owner-operator is a driver who either owns or leases the truck they are driving. A self-employed driver.

OOS:

When a violation by either a driver or company is confirmed, an out-of-service order removes either the driver or the vehicle from the roadway until the violation is corrected.

millionmiler24 (CRST Amba's Comment
member avatar

double-quotes-start.png

However from my searching I believe I’ve come across a lease/purchase company that is different.

double-quotes-end.png

Welcome James. I had to laugh when I read that because that's always the core theory behind every decision for anyone that has ever become an owner operator or lease operator. They all think they found that one magic opportunity that's different than the 99.9% of the opportunities out there. Somehow it's that one diamond in the rough that's going to mean fantastic success.

No, this is different because:

  • I'm going to pay cash for my truck so I won't be in debt
  • I'm going to book my own loads
  • I'm going to do my own mechanical work
  • I'm working for a company without any company drivers
  • I'm only going to haul in one particular region of the country
  • I'm not going to lease the truck from the company I'm hauling for

........and on and on. Everyone has that one idea that's just way better than the rest.

double-quotes-start.png

I’ve read a lot of negatives and I understand all of them

double-quotes-end.png

To be honest, you're still thinking about leasing a truck so you don't understand all of them just yet.

The bottom line has been the same for almost 40 years, maybe more. The average profit margin in trucking is 3%. Over time that's what you can expect if things go really well for you. You'll make 3% more than you would as a company driver. Of course for at least half of the people out there it doesn't even go that well, and for many they wind up in a complete financial mess.

There's just very little upside and a huge downside to it. Stick with being a company driver. If you want to own your own business don't choose a commodity industry like trucking or farming or convenience stores. You have to find something where you can really differentiate yourself. Trucking just isn't it.

Now our policy is not to talk about leasing or owning trucks because it turns into a big fight every time. So we're going to end this conversation right here. Do a search in the search box at the top of the page for "leasing a truck" or "owning a truck" and you'll find tons and tons of conversations about it.

Basically my advice is to keep doing your research until you've determined that buying or leasing a truck just isn't a good business opportunity. Then you'll know you understand the situation well enough.

Agree here totally 100%. BTW Brett, did you get my e-mail? Anyway never go lease. I have myself learned the hard way that it's not worth it so please don't do it. You have to be Stone Cold lucky to even have the same profit margins that Brett is mentioning here. Also if you're truck breaks down your screwed because the company doesn't pay for repairs, you do.

Owner Operator:

An owner-operator is a driver who either owns or leases the truck they are driving. A self-employed driver.

OOS:

When a violation by either a driver or company is confirmed, an out-of-service order removes either the driver or the vehicle from the roadway until the violation is corrected.

G-Town's Comment
member avatar
Right now I get a percentage of my flatbed loads as a company driver and am grossing between 1500-2000 a week, home every weekend. So I’m not looking to jump ship unless it makes sense. Any input would be appreciated.

That’s incredibly good money after only 8 months. Are you paid as a 1099, or a W2 employee?

Steve L.'s Comment
member avatar

Are you grossing 1500-2000 miles per week or dollars? If it’s dollars, that’s $75,000-$100,000 per year. So the question might then be; what’s the realistic chance you’ll NET that same money.

Is there a reason, other than money, you’re considering the move?

millionmiler24 (CRST Amba's Comment
member avatar

double-quotes-start.png

However from my searching I believe I’ve come across a lease/purchase company that is different.

double-quotes-end.png

Welcome James. I had to laugh when I read that because that's always the core theory behind every decision for anyone that has ever become an owner operator or lease operator. They all think they found that one magic opportunity that's different than the 99.9% of the opportunities out there. Somehow it's that one diamond in the rough that's going to mean fantastic success.

No, this is different because:

  • I'm going to pay cash for my truck so I won't be in debt
  • I'm going to book my own loads
  • I'm going to do my own mechanical work
  • I'm working for a company without any company drivers
  • I'm only going to haul in one particular region of the country
  • I'm not going to lease the truck from the company I'm hauling for

........and on and on. Everyone has that one idea that's just way better than the rest.

double-quotes-start.png

I’ve read a lot of negatives and I understand all of them

double-quotes-end.png

To be honest, you're still thinking about leasing a truck so you don't understand all of them just yet.

The bottom line has been the same for almost 40 years, maybe more. The average profit margin in trucking is 3%. Over time that's what you can expect if things go really well for you. You'll make 3% more than you would as a company driver. Of course for at least half of the people out there it doesn't even go that well, and for many they wind up in a complete financial mess.

There's just very little upside and a huge downside to it. Stick with being a company driver. If you want to own your own business don't choose a commodity industry like trucking or farming or convenience stores. You have to find something where you can really differentiate yourself. Trucking just isn't it.

Now our policy is not to talk about leasing or owning trucks because it turns into a big fight every time. So we're going to end this conversation right here. Do a search in the search box at the top of the page for "leasing a truck" or "owning a truck" and you'll find tons and tons of conversations about it.

Basically my advice is to keep doing your research until you've determined that buying or leasing a truck just isn't a good business opportunity. Then you'll know you understand the situation well enough.

Hey Brett, just curious: did you get my e-mails?

Owner Operator:

An owner-operator is a driver who either owns or leases the truck they are driving. A self-employed driver.

OOS:

When a violation by either a driver or company is confirmed, an out-of-service order removes either the driver or the vehicle from the roadway until the violation is corrected.

Page 1 of 1

New Reply:

New! Check out our help videos for a better understanding of our forum features

Bold
Italic
Underline
Quote
Photo
Link
Smiley
Links On TruckingTruth


example: TruckingTruth Homepage



example: https://www.truckingtruth.com
Submit
Cancel
Upload New Photo
Please enter a caption of one sentence or less:

Click on any of the buttons below to insert a link to that section of TruckingTruth:

Getting Started In Trucking High Road Training Program Company-Sponsored Training Programs Apply For Company-Sponsored Training Truck Driver's Career Guide Choosing A School Choosing A Company Truck Driving Schools Truck Driving Jobs Apply For Truck Driving Jobs DOT Physical Drug Testing Items To Pack Pre-Hire Letters CDL Practice Tests Trucking Company Reviews Brett's Book Leasing A Truck Pre-Trip Inspection Learn The Logbook Rules Sleep Apnea
Done
Done

0 characters so far - 5,500 maximum allowed.
Submit Preview

Preview:

Submit
Cancel

Join Us!

We have an awesome set of tools that will help you understand the trucking industry and prepare for a great start to your trucking career. Not only that, but everything we offer here at TruckingTruth is 100% free - no strings attached! Sign up now and get instant access to our member's section:
High Road Training Program Logo
  • The High Road Training Program
  • The High Road Article Series
  • The Friendliest Trucker's Forum Ever!
  • Email Updates When New Articles Are Posted

Apply For Paid CDL Training Through TruckingTruth

Did you know you can fill out one quick form here on TruckingTruth and apply to several companies at once for paid CDL training? Seriously! The application only takes one minute. You will speak with recruiters today. There is no obligation whatsoever. Learn more and apply here:

Apply For Paid CDL Training

About Us

TruckingTruth was founded by Brett Aquila (that's me!), a 15 year truck driving veteran, in January 2007. After 15 years on the road I wanted to help people understand the trucking industry and everything that came with the career and lifestyle of an over the road trucker. We'll help you make the right choices and prepare for a great start to your trucking career.

Read More

Becoming A Truck Driver

Becoming A Truck Driver is a dream we've all pondered at some point in our lives. We've all wondered if the adventure and challenges of life on the open road would suit us better than the ordinary day to day lives we've always known. At TruckingTruth we'll help you decide if trucking is right for you and help you get your career off to a great start.

Learn More