Nothing is foolproof, that's true. But I drive for an O/O leased to a container company and see what I could be making vs. what I am making. I am realistic and know that I will never get rich, but once the truck is paid off things will be better. I'll never be able to save for a down payment and want to own. There must be a way. Thanks.

 

What you are seeing is the GROSS cost - before expenses. Most lease/purchase plans have a WEEKLY payment of $500 or more - that equates to a truck payment of over $2000 per month. Most companies who offer Lease Purchase plans pay around $0.85 - $0.90 per mile. When you have at least $0.50 per mile going towards fuel, and another $0.22 per mile going towards a truck payment, as well as insurance, repairs, maintainance, taxes, tires, etc., the numbers just don't add up.

Once the truck is paid off (at the inflated rate that L/P companies charge for it), it will be worn out, and either need a very expensive overhaul (at least $15,000), or will need to be replaced, giving you another truck payment. The average life of one of these trucks is around 5-6 years before an overhaul, given the amount of miles you will have to put on it to make any money.

If you can't afford a down payment on a good used truck (probably about $5000), then what makes you think you can afford to fork out about $75,000 per year to own your own truck?

 

Why? Not good with the money? Than you are not belong, anyway!
Every con, is based on a human greed, and unability to see, thru the "green". :sad:
Well, you wouldn't be the first, and unfortunatley, the last!

Good luck!

 

You would be wise to listen to these guys here... Like was mentioned, the numbers your seeing driving for an OO are the GROSS numbers and not the net.

If your not aware of what it takes to run a truck first you should at least understand the costs.

Here is an interesting thread, however incomplete it should at least give you an idea of the actual costs of running a truck:
http://www.classadrivers.com/phpBB2/...35f6997f2edf7c

Just look at what these drivers say it costs to run a truck, and then go look at the numbers that any of these lease carriers are throwing out there. You should start to see a pattern that unless your willing to starve to death your not going to make any money.

Next ask yourself why you cannot save enough to put a down on a good used truck. Get on with a good company that pays decent and in a couple of years you will have your down payment and some startup money. As others mentioned. If your not able to get ahead enough to put a down payment on a truck then go looking for better income and get busy with your business plan...

Someone else mentioned leasing with Ryder, and that if anything is probably as close as your going to get to a fair and equitable lease deal. All of the other lease purchase carriers are a ripoff. You will not make it if you try to go that route.

Nobody wants to rain on your plans, but it is just the sad truth. If you take the time to run the numbers you will find out that you are making more money driving company driver than YOU WILL GET TO KEEP on a L/P.

Buying a truck and trying to run a business is a big deal. Take your time, position yourself wisely, and you will have a shot. If you rush this and get lured by the cash flow mirage you will find yourself in a much worse situation than you had going into this. BOL

Longsnowsm

 

Save for a down payment on a truck. Look at you expenses as a company driver on the road and at home, see what you can do with out and cut back on. Put back $100 a week and you will have 10% down payment in a year for a nice used truck or maybe you can do $50 a week and in two years then you can get a truck.

I know some drivers can do that if they stay out of the truck stop arcade and keep the lizarads out of the truck.

Don't be fooled and let the companys talk you into a lease purchase program. Just remember when PFT sold their company to TMC all those lease purchase deals those drivers had was gone, TMC didn't honor them and TMC ended up with the truck and the driver was no longer a truck owner.

I have seen only one lease purchase deal that is working so far and I have three good friends that are doing it and have been for about 2 years and should have it paid off in 12 months. The company puts the title in the drivers name and them as lein holder. And they have been doing good so far pulling a flatbed on percentage and not by the mile. I will wait and see if they get it paid for.

Save for a down payment go and buy the truck you can afford and want, you will be happier as an owner operator, plus if it don't work out with the company you are leased to you can leave, can't do that on a fleece purchase.

 

IMO if you can't save for a down payment as a company driver you will never be able to manage trucking as an owner-operator.

It's been my experience through talking to other drivers and also through crunching my own numbers that a company driver for any given company is going to be making more (after expenses are all accounted for) than any o/o for that same company. This goes for any freight companies- and doesn't necesarily carry over to specialized freight (car haul, some flat bed, household etc).

There are a lot of variables you have to consider when thinking about buying a truck- that truck payment and insurance and other fixed expenses do not go away if you get sick, if freight gets slow, if you get hurt or if you have a family emergency. Those payments don't go away if you break down or if you simply want to take some time off- even a few days.

If you have a lease purchase program through a company- what will you do if your dispatcher decides he/she doesn't like you and starts messing with you? You can't just quit- they own the truck. And, trust me, they'll stick it to you if you try to get out of the lease- talk to any number of ex-Swift lease-operators.

Please read these articles- I just hate to see people make uninformed decisions:

Lease Purchase Scam for Truckers
Truckers Tips on Buying a Semi
Owner-operator Traps in Trucking

 

If the owner operator you are working for is pulling containers, he is probably not making that much money. Containers typically don't pay very well. There are a lot of costs that are not always apparent when you drive rather than own the truck. At this point you don't have any idea of what his costs run. I can tell you first hand that it is expensive running a truck. Unless you have the discipline to save enough for a good down payment you should probably do yourself a favor and wait. Getting involved in a fleece program is a good way to lose your shirt. It is very foolish to jump into one of these programs. It is even more foolish to do so without any money in reserve.