O/O or Company Driver?
#1
05-09-2008, 12:51 PM
O/O or Company Driver?
Could a few of you fellas elaborate on the lease scams and why they are considered scams?
Is it simply the lack of freight? Or is now just a bad time to do it? Please explain in terms a newbie would understand.
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Git 'er done!
#2
05-09-2008, 01:10 PM
lease=this place sucks, freight is slow, i quit!! aawwww you cant you leased the truck and payments are due.
company driver=this place sucks, freight is slow, i quit!! SEEYA
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The Green Grass on the other side, still needs to be mowed
#3
05-09-2008, 01:25 PM
Join Date: Sep 2005
Location: Pittsburgh, PA
Posts: 1,658
Re: O/O or Company Driver?
Originally Posted by Whammo
Could a few of you fellas elaborate on the lease scams and why they are considered scams?
Is it simply the lack of freight? Or is now just a bad time to do it? Please explain in terms a newbie would understand.
#4
05-09-2008, 01:51 PM
Originally Posted by all18wheels
lease=this place sucks, freight is slow, i quit!! aawwww you cant you leased the truck and payments are due.
company driver=this place sucks, freight is slow, i quit!! SEEYA I laughed.
#5
05-09-2008, 02:34 PM
Senior Board Member
Join Date: Jan 2005
Location: East Central IL between the corn and the beans
Posts: 4,977
Here are the problems with most lease purchase deals:
1. Many are actually just leases. You do not own the truck after the last payment is due. 2. You often end up paying 50-100% more for the truck than you could have bought it for through regular financing methods, even with bad credit. 3. If you do not make enough to live on you usually can not take the truck with you to a better company. 4. If you terminate the lease early you are often hit with all types of extra fees that at the least will eat up your maintenance fund and last pay settlement. 5. Many times you have to have your truck serviced at the company's specified location(s). 6. The company who you are buying the truck from is the same company who really controls your paycheck. They can all too easily have you only run enough miles to pay for the truck, fuel, insurance etc and nothing more, or even have you run fewer miles than that to quickly force you to turn the truck in so they can lease it to someone else. In a company lease or lease purchase the truck ALWAYS gets paid first. 7. With many L./P's all you really end up being is a company driver who is paying the company for the privileged of driving their truck. With many of the rules they place into the L/P agreement you just end up with all of the headaches of being an O/O with few or none of the potential rewards.
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Finding the right trucking company is like finding the right person to marry. I really comes down to finding one whose BS you can put up with and who can put up wih yours.
#6
05-09-2008, 02:42 PM
Originally Posted by Uturn2001
Here are the problems with most lease purchase deals:
1. Many are actually just leases. You do not own the truck after the last payment is due. 2. You often end up paying 50-100% more for the truck than you could have bought it for through regular financing methods, even with bad credit. 3. If you do not make enough to live on you usually can not take the truck with you to a better company. 4. If you terminate the lease early you are often hit with all types of extra fees that at the least will eat up your maintenance fund and last pay settlement. 5. Many times you have to have your truck serviced at the company's specified location(s). 6. The company who you are buying the truck from is the same company who really controls your paycheck. They can all too easily have you only run enough miles to pay for the truck, fuel, insurance etc and nothing more, or even have you run fewer miles than that to quickly force you to turn the truck in so they can lease it to someone else. In a company lease or lease purchase the truck ALWAYS gets paid first. 7. With many L./P's all you really end up being is a company driver who is paying the company for the privileged of driving their truck. With many of the rules they place into the L/P agreement you just end up with all of the headaches of being an O/O with few or none of the potential rewards.  How about o/o in general? Would I be correct in surmising that now is a bad time to take out a loan on a truck?
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Git 'er done!
#7
05-09-2008, 04:33 PM
Originally Posted by Whammo
I see. That makes a lot of sense. Thanks for taking the time to answer in so much detail How about o/o in general? Would I be correct in surmising that now is a bad time to take out a loan on a truck?
#8
05-09-2008, 05:46 PM
Lease purchase = Company driver with all the costs of an Owner Operator.
Good Deal huh!!
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Mama cooks the chicken fried in bacon grease, Down the road, Down the road, Down the road a'piece!! Adapt and overcome.
#9
05-09-2008, 05:53 PM
Lease purchase = Company driver with all the costs of an Owner Operator.
Good Deal huh!!
__________________
Mama cooks the chicken fried in bacon grease, Down the road, Down the road, Down the road a'piece!! Adapt and overcome.
#10
05-09-2008, 06:25 PM
Senior Board Member
Join Date: Jan 2005
Location: East Central IL between the corn and the beans
Posts: 4,977
How about o/o in general? Would I be correct in surmising that now is a bad time to take out a loan on a truck?
__________________
Finding the right trucking company is like finding the right person to marry. I really comes down to finding one whose BS you can put up with and who can put up wih yours. |
