Lease Purchase

[fletcher4]

I've read alot about how most say it's a bad idea to do a lease purchase deal. To become an owner operator it's my only option right now. My question is, are there any companies out there where you can do a L/P and make at least $1,500 after expenses?
Thanks for any feedback

[geomon]

Can you explain a bit more on why becomming an O/O is your only option?

[fletcher4]

I meant that to become an O/O I'd have to go with the L/P. Not able to get a bank loan right now.

[GMAN]

I am with geomon. Why is a lease purchase your only option? If you have a CDL and decent driving record and work history, you can be a company driver. You can earn a decent living as a company driver. I doubt seriously if you can clear $1,500 on ANY lease purchase, unless you are talking about per month. Most people who do lease purchase make less than if they stayed a company driver. If you want to make more money then you don't need to lease purchase a truck. If you want to become an owner operator you need to build your credit, save your money and learn all you can about this business. When you get into a lease purchase with poor credit, no money and limited experience, it is likely only a matter of time until you lose everything. Most people with whom I have spoken wind up going broke in these programs. Everyone thinks they are different and they will do well where others have failed. Only a very small percentage of drivers complete these leases. In most lease programs you never own the truck. All you are doing is paying for it for the carrier.

[fletcher4]

I understand, thanks for the replies. It's probably best I stay a company driver. I was just looking to make a little more.
Thanks

[rgarthman1969]

They both are right. The best thing to do right now is to stay a company driver, rebuild your credit and save money. If you become a lease OO you will be tied down to that company and all that you are doing is making there truck payment for them. Plus, you will have no benefits like health and life unless you plan on paying it yourself and after all the bill have been paid for that week or month, you will earn waymore less that being a company driver. So learn all you can about this business and save money and rebuild your credit and one day soon you will become a true OO. I wish you the BOL.

[JR OTR]

You aren't going to make more take-home pay as a lease-purchase operator than as a company driver for a good company. I embarked on my lease-purchase journey in June and since then I've done well, but not $1,500 a week well.

Remember, when you aren't a company driver you pay both sides of social security and medicare taxes (15.3% off the top). You pay for your healthcare, and typically the costliest plans are the ones for individuals. Any time off comes directly out of your pocket, including vacation time.

If a company truck breaks down, you might lose some pay for a few days. If your truck breaks down, you lose not only the pay you were expecting but you get to pay the towing, repair and any cargo insurance bills as well.

Jim

[coastie]

With most lease purchase you will be spending more for a truck. Most want 500.00 per week or more for 3 years.

I too want my own truck and been looking into the different options. Save up for a down payment, and you can save on average 203.00 per week over most lease purchase programs. And you will be free to move the truck to another company if need so.

[Walking Eagle]

I often sit and wonder who was the first company to come up with this ripoff. Never heard about such a thing when I started.

[GMAN]

I don't remember them being around when I first started in the early 1970's. I have a friend who started a couple of years earlier and he recalls some sort of program back then. It may have been more regional. :? I think most people who wanted to buy a truck went to their bank and got the money or saved and paid cash.

[Heavy Duty]

I often sit and wonder who was the first company to come up with this ripoff. Never heard about such a thing when I started.

I think the award goes to Midwestern Distrubtion, Fort Scott, KS or NAVL, Fort Wayne.

[trinitron]

I often sit and wonder who was the first company to come up with this ripoff. Never heard about such a thing when I started.

I think the award goes to Midwestern Distrubtion, Fort Scott, KS or NAVL, Fort Wayne.

NAVL did it first and Midwestern followed. Remember the "You can own this truck for one dollar" plastered on the back of their trailers ?

[Orangetxguy]

I often sit and wonder who was the first company to come up with this ripoff. Never heard about such a thing when I started.

I think the award goes to Midwestern Distrubtion, Fort Scott, KS or NAVL, Fort Wayne.

NAVL did it first and Midwestern followed. Remember the "You can own this truck for one dollar" plastered on the back of their trailers ?

I DO !!!!

Now that you mention it!!

[GMAN]

Come to think of it, I do remember something about $1.

[Heavy Duty]

It started in the 60's, no wonder you don't remember. FFE was also doing it.

[Rev.Vassago]

Not able to get a bank loan right now.

You answered your own question right there. If you can't get a bank loan (or can't buy it outright), you shouldn't be an O/O.