Question For Those That Do Lease Purchase

Topic 30946 | Page 1

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Mikey B.'s Comment
member avatar

Say you lease purchase a truck and get a percentage of the load, is it customary for the company to also take their cut from you detention pay and or fuel surcharge or do you get 100% on those?

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
Anne A. (G13Momcat)'s Comment
member avatar

Say you lease purchase a truck and get a percentage of the load, is it customary for the company to also take their cut from you detention pay and or fuel surcharge or do you get 100% on those?

Do we even 'know' anyone on TT that DOES L/P nowadays?? I'm thinking. Many are long departed. Charlie Mac, Thull, can't think of 'em all. Good ole'boys. I kept in touch for awhile elsewhere; neither are.

~ Anne ~

ps: Speaking of 'percentage pay...' ie: Maverick, has (or did) have % pay for drivers, by choice . . . do THEY split that 'accessorial pay' .. according to their % agreement with the company?!?!? Hmm... INTERESTING.

Great topic, Mikey B. (IMHO!)

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
Mikey B.'s Comment
member avatar

double-quotes-start.png

Say you lease purchase a truck and get a percentage of the load, is it customary for the company to also take their cut from you detention pay and or fuel surcharge or do you get 100% on those?

double-quotes-end.png

Do we even 'know' anyone on TT that DOES L/P nowadays?? I'm thinking. Many are long departed. Charlie Mac, Thull, can't think of 'em all. Good ole'boys. I kept in touch for awhile elsewhere; neither are.

~ Anne ~

ps: Speaking of 'percentage pay...' ie: Maverick, has (or did) have % pay for drivers, by choice . . . do THEY split that 'accessorial pay' .. according to their % agreement with the company?!?!? Hmm... INTERESTING.

Great topic, Mikey B. (IMHO!)

I went "to the darkside" 2 months ago. As with most things, I didn't feel right giving advice on the subject having never experienced it. Beside, at 2.5 years driving I wanted to try LP. In my short time doing it I can say the advice for newbies NOT to lease is definitely right and the company you lease from makes a lot of difference. I make 73% of each load and they get 27%, including it seems of detention pay as well...lol.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
Robert B. (The Dragon) ye's Comment
member avatar

Every lease purchase program is different and the vast majority are horrid. They have it where I’m at and I did ask about it out of curiosity because quite a few drivers here are on it and they’re older hands who have been here 10-15 years or more. Nobody ever intends to buy the truck, they cycle them out at 3-350k while still under warranty and there’s trade in value left in the truck. The down payment is 25k and they have various ways which it can be paid. The pay is 81% of the rate plus 100% off the fuel surcharge and 100% off any detention as well as deadhead pay and additional pay on some loads. Currently, the fuel surcharge is 38% based on the rate so for example a $1000 load paid $380 for the fuel surcharge. Our loads are generally around 5-600 miles so at the current fuel surcharge, those drivers aren’t paying for the fuel and usually pocketing money as well, along with fuel discounts accrued and paid out each month.

Deadhead:

To drive with an empty trailer. After delivering your load you will deadhead to a shipper to pick up your next load.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
Old School's Comment
member avatar
I went "to the darkside" 2 months ago.

Hey Mikey, I think almost everybody thinks about it once or a hundred times. We all want to make more money at this, and it seems like a legitimate way to try and do just that. Remember that it often seems at first to really be working out well, but the reality usually doesn't kick in until you've put in the time to feel the weight of the mean averages that affect the trucking business overall.

You are in a unique situation to be a lease operator and nobody here is going to rain on your parade for trying to improve your income or your investment portfolio. The problem with the whole concept of leasing is that there just isn't that much extra money to go around in the trucking business. It is a business with average operating ratios in the 97% range. That just means after all the expenses are incurred, and you've had a few years experience put in as a lease operator, you might be able to improve your income by maybe 3 to 5%. Is it worth it? You will be able to tell us after a few years. What really gets me is when these guys who have done it for a few months start talking about how great it is. They have no way of even knowing yet.

Seriously, I wish you the best of luck with it. If anybody can pull it off, you are a great candidate for it.

OWI:

Operating While Intoxicated

Jammer a's Comment
member avatar

I truly feel if anyone can do it it will be Mikey he is a driver 💯 he lives in his truck only take like 5 days a yr home time I think you got this bro

double-quotes-start.png

I went "to the darkside" 2 months ago.

double-quotes-end.png

Hey Mikey, I think almost everybody thinks about it once or a hundred times. We all want to make more money at this, and it seems like a legitimate way to try and do just that. Remember that it often seems at first to really be working out well, but the reality usually doesn't kick in until you've put in the time to feel the weight of the mean averages that affect the trucking business overall.

You are in a unique situation to be a lease operator and nobody here is going to rain on your parade for trying to improve your income or your investment portfolio. The problem with the whole concept of leasing is that there just isn't that much extra money to go around in the trucking business. It is a business with average operating ratios in the 97% range. That just means after all the expenses are incurred, and you've had a few years experience put in as a lease operator, you might be able to improve your income by maybe 3 to 5%. Is it worth it? You will be able to tell us after a few years. What really gets me is when these guys who have done it for a few months start talking about how great it is. They have no way of even knowing yet.

Seriously, I wish you the best of luck with it. If anybody can pull it off, you are a great candidate for it.

OWI:

Operating While Intoxicated

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