Swift Lease. Can Truck Be Used For Any Other Company.

Eh? Wha'd I tell ya....trucking truth bat?? Huh? Huh????

am trying to get answers from others to show him I am telling the truth and not just trying to hold him back. I want this guy to succeed.

Regardless of the business you're talking about getting into, people who have never owned and operated a business before have no idea how ruthless business owners can be. They have no idea how incredibly competitive it is and how complex the environment is. They figure, "Hey, I know how to make some pretty good pizza and I love eating pizza so I'll open a pizzeria!" or "I'm always hanging out at the bar with my buddies so why not just buy the place and start making all this money instead of spending it?"

Wow, if only it was that easy!

The questions he's asking about how leasing or owning a truck might work is scary. It's like watching someone volunteering to fight the UFC champ and then asking, "Why are they wearing those glove thingies and how do you put them on, anyhow?"

You already know the guy is going to get slaughtered if he enters that ring against an experienced, professional fighter. He simply has no idea what he's doing and he's ready to enter the ring against a savvy veteran who would love to knock him unconscious with one punch? omg.......

Anyone considering owning and operating any sort of business should have a few years experience as an employee doing that sort of work to begin with and should be doing the research during that time to learn what the ownership side is all about. If you aren't a master at the work your business does you're going to have one heck of a time trying to master your trade and learn the ownership side at the same time.

There is a law suite going on about this now. When I leased on with Swift no you could not take the truck any were else. This might be changing with the law suite but I don't know. I am no longer with Swift.

Rick had posted something to this effect a few days ago you may check out some pages back

You can lease your truck through Swift, and you will contract to haul Swift's stuff. In any way, would Swift then pay you to haul any other company's freight? Not in a hunnert years! Besides, Swift will keep you busy.

(Maybe I missed something, but this is what I understand the question to be.)

OK - I'll try to tackle these all in one shot.

There IS a lawsuit going on with Swift - that has made it past a jurisdictional/venue hurdle (contract states that all claims should go through arbitration, judge said suit could proceed in real court).

The information I posted about the suit - Lawsuit Against Swift Determines Lease Operators Are Employees - was not about slamming Swift or leasing (per se'), but to illustrate what we try and illuminate new folks here about the some of the downsides of the leasing thing. Essentially - what the suit has found SO FAR (it's not over yet by a long shot), is that: lease-ops are treated the same as employees (in a legal fashion) where the op has the same responsibilities as a regular W-2 company driver (forced dispatch for the most part - unless you want to do a LOT OF SITTING) - and none of the benefits/protections an employee has (health insurance, WC, unemployment insurance) plus the additional financial responsibilities of a truck you DO NOT OWN (unless it's a lease/purchase and you actually have a buyout at the end - if you last that long) - and cannot take elsewhere.

The lawsuit is going to make the LAWYERS a lot of $$, the drivers a little money. It may change the way Swift does it's lease contracts - but it isn't going to "end leasing" at Swift. They will probably set up a new company at a longer "arms length" - that still has you in a non-compete only driving for Swift. It MAY ALLOW you to take the truck elsewhere after a period of time (in order to escape the "forced labor" allegations of the lawsuit) or it may not.

There is nothing EVIL about the company and the leasing arrangement. Swift and everyone else IS A BUSINESS - they're in it to MAKE MONEY. If they can shift their expenses onto someone else (the lease/op), they deliver more PROFIT to their shareholders. Simple as that.

So on one hand - Errol IS correct - why would a company give you a truck and let you take it somewhere else and drive. And on the OTHER HAND - the leasing company is a different entity/subsidiary of the CARRIER COMPANY (in this case - Swift) - and they are leasing YOU a piece of equipment and BINDING YOU to use it only at ONE SPECIFIC COMPANY.

Now - I've heard of a few other companies whose lease allows you to move to a different carrier with the equipment - ONLY IF that carrier will sign an agreement to DIRECT PAY the lease payments out of your settlements directly TO the leasing company.

Again - for the reason Errol illustrates - the object of leasing you a truck, is to OPERATE IT FOR SWIFT. And again - the conversation and lawsuit illustrates why we don't advise folks to lease. At least NOT IN THE FIRST YEAR - so you can learn how to operate safely and efficiently and learn about the industry - BEFORE you take on the FINANCIAL RESPONSIBILITY of paying for equipment you don't really own (lease payment, fuel, maintenance, tolls, bobtail insurance, etc.), taxes and benefits you no longer get by being an independent contractor (withholding/SS/Medicare, WC, Health Insurance, etc.). Coupled with the fact that - for all that ADDITIONAL RESPONSIBILITY, you aren't really making that much more than a company driver. For many/most - the risk:reward ratio just isn't there.

Especially since you can't "take your ball and go play elsewhere".

We have guys on here that lease - they don't discuss it out of respect for the communities wishes. They're obviously not going broke - or they would share a "you told me so", at the least. They have their reasons WHY they do it - most of them TRAIN for the extra income to the truck in order to make ends meet.

Company Leases are a way for someone with horrible/no credit - to "think" they are a "business owner". From the RESPONSIBILITY ASPECT of it - you are. From the BENEFIT ASPECT of it - the scales really aren't tipped in your favor.

If you really want to own/lease - drive for a few years - save a BUTTLOAD OF CASH - work at building a solid credit history. Then you can walk into a leasing company or finance company - put a CHUNK of cash down (with enough put aside for 3-6 months of operating expenses - fuel, maintenance, payments, insurance, etc.) - and get a truck with INDEPENDENT FINANCING - that you can lease on with ANYONE YOU WANT (or if you're REALLY SILLY - fly your own MC#, chase your own loads, manage your own net 30-60-90 A/R, deal with all the compliance/regulations).

Rick

You can lease your truck through Swift, and you will contract to haul Swift's stuff. In any way, would Swift then pay you to haul any other company's freight? Not in a hunnert years! Besides, Swift will keep you busy.

(Maybe I missed something, but this is what I understand the question to be.)

I haven't heard this at Swift or any of the other majors - but I have heard that some companies will allow you to grab loads of boards from approved brokers, if there's no freight on their own board - of you are in a bad lane for them.

Smaller companies have "contract freight" - and then go to "outside brokers" themselves, to get the equipment back into their own freight lanes. Ginormous companies like Swift, have enough of their own contract freight and are in enough freight lanes that they can keep their stuff running of their own planner board.

You can see WHERE a company's contract freight lanes are - pretty much by looking at their HIRING MAP. They don't want to pay the fuel to get a driver home - if it takes them too far out of their own lanes.

This is another aspect of the "forced labor" alleged in the lawsuit.

Rick