Not A Standard Lease Purchase
Topic 22841 | Page 1
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.
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.
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.
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?
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?
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.
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.
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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.