Lease Purchase How much money can you make with a lease purchase?

Textrucker

New Member
I've been reading the pros and cons of a lease-purchase deal but I haven't really read how much money can a driver make? I'm sure it depends on your dispatcher and other factors. A prime recruiter told a friend of mine he can make $2200 per week. Lease payment insurance everything already out
 

mndriver

curmudgeon extraordinare
Supporter
Can you create a pro forma statement of cash flow.

That will tell you what you should be able to make.
 

Injun

Rabid Squaw
Staff member
Supporter
A prime recruiter told a friend of mine he can make $2200 per week. Lease payment insurance everything already out
:rolllaugh3:


Wait...did that recruiter say "occasionally?" Because yes, it can be done occasionally. But it's unreasonable to expect that regularly from Prime.
 

realdesertkickin

Well-Known Member
LOL, I believe 2200....Minus 2500 in bills...paycheck is -300

I have quite a few L/O lease operator friends...They got thier own trucks and leased them onto thier LTL carriers they work for (Saia/Central)...
Their paychecks are 2200 to 2700 a week...double their company driver pay..
Safer more solid way to go...

Between here and ttr, you can get your fill of L/P info....
 

Mike

Well-Known Member
Staff member
Four big factors in Lease Purchase.

1. The lease purchase contract
2. The freight rates you are capable of getting
3. The truck you get
4. You

People do them and succeed, others fail. The most important factor is #4. Why? Because #4 factors into 1,2, and 3.

Contrary to the quick answers you tend to get on this subject, and after you dig through the BS jokes, the reality of it is there are lease purchase setups out there that you can succeed at. There are also some that are very likely to lead to failure.

First off, don't do any lease purchase where you are pulling freight around for $1.00/mile, don't even do it for $1.20/mile. If you dig past the large carriers, you will find that there are companies out there that will set up up in a truck lease/purchase and actually have rates that allow you to earn a profit after paying yourself a decent company driver wage.

The rates are very important. Between the payment you make, and the profit you are earning beyond what you pay yourself, you should be able to pay even a new truck off within 4 years. If you can't, then it's not a good lease purchase deal. Ideally, you want to have the truck paid off in 3 years, but new truck costs today, and mediocre freight rates may make that tough to accomplish.

All that said, this is the absolute worst avenue into truck ownership. In a lease purchase, you don't own the truck, your name isn't on the title, and the company leasing it to you can likely terminate your lease at any time. Even worse, you can be a month away from paying off your truck, and the company can go bankrupt (at which point your lease means nothing, and you lose the truck). You are basically at the mercy of the company you are leasing the truck from, unless you have a lease that allows you to take the truck somewhere else (those options do exist).
 

Renegade 21

Well-Known Member
Sty clear of lease purchases. It is a gimmick that is like going to Vegas. The odds are against you. The house is the favorite. Many years ago i tried the lease purchase thing. I was very careful in research, and had been driving for several years before trying this. Had an ex-wife so credit was shot. One must be very budget minded, excellent record keeper, partial maintenance person ( D.I.Y), have excellent tax person whom is experienced, trusted, and not related in any fashion, good at math, and a partial lawyer to understand the legal jargon of the Lease agreement. As i stated i did this a couple of times. The best company was Melton. I paid the truck off, received a decent paycheck every two weeks, and never felt like i needed vasoline. Another company, i ran my rear in the ground, rarely seen a paycheck, but was making my truck payments, maintenance fee/costs
 

krelithous

Well-Known Member
Supporter
if you belive the prime recruiter i'll sell ya the golden gate bridge:D:biglaugh:. buy elsewhere and latch on under someone elses authority if the marriage goes sour then there not holding your nuts plain and simple
 

ready to roll

I ain't got no panties
When i leased there were weeks where my check was negative while running otr. When i got on a dedicated run i started to see some money but it wasnt more then $1000 a week (before taxes).
 

ironpony

Professional Pot-Stirrer
Supporter
Depends on the revenue, and how well you control your costs.

The carrier controls the revenue, and usually has their name on the truck title. This makes these deals risky and the contract usually specifies that the lease holder can pull the rug out from under you at any time for any reason with no notice. That means lease purchases rarely end up with you owning the truck.

Most drivers remain drivers, and don't become businessmen - a necessary transition. Unless you run your truck as a business, its most likely you won't make the money that a comparable company driver does at the same carrier. Its all about knowing your numbers, and controlling costs. If you aren't doing your accounting on at least a monthly basis, you don't have chance.

:rolllaugh3:


Wait...did that recruiter say "occasionally?" Because yes, it can be done occasionally. But it's unreasonable to expect that regularly from Prime.
If you train or run teams at Prime - and a lot depends on who you have as a fleet manager, its possible. I'd plan on averaging less than that $2,000 to $2,200, and that's before taxes.

Most people at Prime run straight leases, 3 years on a new truck, or the balance of a 3 year lease on a truck someone else has turned in. Lease purchases are available on new trucks. Its a 4-year term, with $13,000 down due at signing.
 
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Renegade 21

Well-Known Member
MN Driver
I am smart enough, and experienced enough to do both. This is why i have my own company, and bought my trucks outright.
 

mndriver

curmudgeon extraordinare
Supporter
MN Driver
I am smart enough, and experienced enough to do both. This is why i have my own company, and bought my trucks outright.
Did I say you or call you out specifically?


It is a general statement to any driver who is considering a lease purchase.

Once you sign that line you are no longer a driver.


You are a business owner.

Act that way.
 

Renegade 21

Well-Known Member
I apologize and meant no disrespect. It was the manner in which you stated the statement, and it seemed to be directed at myself.
 

Copperhead

Well-Known Member
The $1 a mile or whatever thing may not be all that bad. It all depends on what it being picked up by the carrier and other compensation like detention. Discounts on fuel and such also makes a major difference depending on what that is. No goofy hidden charges and fees, etc. While I am not doing a lease purchase thing, I do own the truck, ordered it and bought it new, and still have a few payments of $1500 a month left. But every year I have had this one, my income for the year after all expenses has been in the $80K range. That is with being home every weekend and holiday and usually taking 3-4 weeks off a year.

What I get paid is Between $1.04 and $1.19 a mile (depending on length of haul) and currently $.23 a mile fuel surcharge. I pay myself a salary of $750 a week ($39K per year). The net for January so far after 4 weekly salary payments (including filing of monthly payroll taxes) and all operating costs, is about 34 cents a mile or $3509. that is AFTER the tuck payment, expenses, insurance, etc and paying myself $750 a week along with employer portion of SSI taxes. (I am an LLC with a S Corp tax structure) Home every weekend just like I am right now. And I will still pull off another run or two before end of month. There are many factors that go into it. Just looking at the rate per mile doesn't cut it. Having a truck on with a carrier is a package deal. You have to view it as such. The only negative month I have had in over 8 years with a truck on with my present carrier (on my second truck here now) was a year ago when the truck was down for 3 weeks after a drug dealer in KC came in sideways and took the nose off my truck.

With a reputable lease purchase and carrier doing it with, there is no reason a person couldn't make it work well if they put forth the effort and crunch numbers.
 
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nan

Well-Known Member
Supporter
I've been reading the pros and cons of a lease-purchase deal but I haven't really read how much money can a driver make? I'm sure it depends on your dispatcher and other factors. A prime recruiter told a friend of mine he can make $2200 per week. Lease payment insurance everything already out
If I run hard instead of lazy and volunteer a 6th day I can make that as a company man. Sooooooo yeah I dunno. That's in a perfect world though. And it doesn't always fall into place like that.
 

nan

Well-Known Member
Supporter
Ohhh! Beat me more, make me suffer, more days, more miles, I like the pain!

:whip:
Haha I haven't done either yet. It's not worth it. In fact I kinda slowed down these past two weeks. Feels better by then time I get to my weekend.
 

Dharok

Well-Known Member
The $1 a mile or whatever thing may not be all that bad. It all depends on what it being picked up by the carrier and other compensation like detention. Discounts on fuel and such also makes a major difference depending on what that is. No goofy hidden charges and fees, etc. While I am not doing a lease purchase thing, I do own the truck, ordered it and bought it new, and still have a few payments of $1500 a month left. But every year I have had this one, my income for the year after all expenses has been in the $80K range. That is with being home every weekend and holiday and usually taking 3-4 weeks off a year.

What I get paid is Between $1.04 and $1.19 a mile (depending on length of haul) and currently $.23 a mile fuel surcharge. I pay myself a salary of $750 a week ($39K per year). The net for January so far after 4 weekly salary payments (including filing of monthly payroll taxes) and all operating costs, is about 34 cents a mile or $3509. that is AFTER the tuck payment, expenses, insurance, etc and paying myself $750 a week along with employer portion of SSI taxes. (I am an LLC with a S Corp tax structure) Home every weekend just like I am right now. And I will still pull off another run or two before end of month. There are many factors that go into it. Just looking at the rate per mile doesn't cut it. Having a truck on with a carrier is a package deal. You have to view it as such. The only negative month I have had in over 8 years with a truck on with my present carrier (on my second truck here now) was a year ago when the truck was down for 3 weeks after a drug dealer in KC came in sideways and took the nose off my truck.

With a reputable lease purchase and carrier doing it with, there is no reason a person couldn't make it work well if they put forth the effort and crunch numbers.
May I ask who you're leased on with? I've heard Crete was good by the YouTube truckers lol
 
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