Is anybody here in what they would consider at good lease or lease purchase deal?

mndriver

curmudgeon extraordinare
Supporter
The topic was actually for people who are in successful lease purchase programs to share their experience, but has now been successfully derailed with the typical anti lease posts by people not in lease purchase programs.

We're done here
Successful lease purchase happen from both sides of the coin.

It takes a leasor as well as a leasee who are Keen on the business of what they are doing to make it work.
 

braylean

Well-Known Member
I know we hear tons and tons of people talk about bad lease programs in the trucking industry, but I just wondered if anybody here has spent some time in a program that they might actually recommend to others.

Myself, I am very skeptical of trucking company's lease purchase programs because the only reason I can figure a trucking company would offer such a program is if they gained from it.
Yes, I am in a good Program at Freymiller. I have a thread below this one that you can wade through the stupid crap too get specifics from. It's not perfect but fairly easy to succeed at and you don't pay much more than market price for the truck with finance charges included. Maybe a bit less because I am reading that incest rates at the banks are about twice what I pay. I'm paying around 10 grand more than the average price I came up with going to new and used dealers and pricing the same truck. There is no balloon just a dollar buyout, no credit hit if you walk away (I know because I already did once due to wife's health at that time). They do charge you a penalty if you leave in the first six months, but nothing after that.
 

braylean

Well-Known Member
Even though many Lease Purchase programs that some of these companies offer seem very restrictive and questionably unfair as far as (1) following the particular rules to the one company that you're leased on to, and (2) not being able to take the truck somewhere else and haul goods elsewhere, the Schneider lease program seems very interesting....even at the risk of being "fleeced" out of much of your income.

The reason why I wouldn't sign a lease right now? You're basically a company driver that pays the bills. That's not really what one would call an independent business owner like most of these true owner operators that deal with brokers and negotiate their own prices. Lastly, I will never understand why many Lease drivers think that they can turn a decent profit pulling for $.90-something cents per-mile plus that $.30 ~ $.40 cent-per-mile fuel surcharge with the cost of diesel fuel being $3.80 to $4.50-something dollars per gallon.

Everyone should be required to take a Business Economics 101 class before signing anything!
It's because all you see is that whatever per mile. You don't take into account that repairs are completely covered under warranty or that I'm making another 12 cpm, ten of which gets deposited in a maintenance account and the other two goes to a completion bonus that the company matches nor do you account for the fact I pay .40 cents per gallon less than than cash price on fuel. Etc. It's not my calculator that's broke. I do just fine. just bought 4 tires, going in in a week to get Def filter cleaned, a service done and my transmission converted to a 13 speed and buying a two year extended warranty and I'll still have money left over in my maintenance account and escrow and not have a dime come out of my pocket. Yup I'm still going broke, lol. NOT!!! Just rolled in five grand from December 1st to the payday before Christmas to make for a great Christmas but I'm going broke according to you all. You really need to find a new song to chant cause this one is getting old.
 
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It's because all you see is that whatever per mile. You don't take into account that repairs are completely covered under warranty or that I'm making another 12 cpm, ten of which gets deposited in a maintenance account and the other two goes to a completion bonus that the company matches nor do you account for the fact I pay .40 cents per gallon less than than cash price on fuel. Etc. It's not my calculator that's broke. I do just fine. just bought 4 tires, going in in a week to get Def filter cleaned, a service done and my transmission converted to a 13 speed and buying a two year extended warranty and I'll still have money left over in my maintenance account and escrow and not have a dime come out of my pocket. Yup I'm still going broke, lol. NOT!!! Just rolled in five grand from December 1st to the payday before Christmas to make for a great Christmas but I'm going broke according to you all. You really need to find a new song to chant cause this one is getting old.
You do realize your arguig with a member that has not been on here for years right?
 

braylean

Well-Known Member
It's not so much the person I'm arguing with anyhow, it's the same old mantra. You know I'm member of another forum that everyone says you can't make any money as an owner operator, period. I guess that makes all of you claiming you make a living in three or four days a week just as big of liars as us l/p guys that claim they do ok.
 
Look have whatever chip you want.

I am a company guy.

Fact is most leasesa are predatory. Can anyone make a living? Sure maybe running months on end, scrimping and saving.......not much different than an O/O who does not pay attention to costs.

Me I'll just take what I make a year and leave all you rich people to argue how much you make.
 

ironpony

Professional Pot-Stirrer
Supporter
It's not so much the person I'm arguing with anyhow, it's the same old mantra. You know I'm member of another forum that everyone says you can't make any money as an owner operator, period. I guess that makes all of you claiming you make a living in three or four days a week just as big of liars as us l/p guys that claim they do ok.
No one is arguing your point. However, most lease-ops don't have a clue about their costs, or their net. You can be sure that the carrier will tell them what their gross is though, exact to the penny. You don't put your gross revenue in the bank. Many lease-ops don't even make the coin that company drivers do. If their agreement involves taking title to the truck, many of those will never see it, or worse, will end up with a junker that will shortly be in need of an inframe.

If you're doing well, that's great. Many in your position aren't.
 

Mike

Well-Known Member
Staff member
Thread starter #231
Point of this thread, way back when I posted it, was for folks to put out information about lease purchase programs they were in if they felt they are good.

The point of putting that information out there is for others who are looking to get into lease purchase programs, so that they may be able to avoid the horrible programs that are out there.

When we post to bash lease purchase in general, it does nobody any good. When we compare lease purchase to company driving or owning a truck, it does nobody any good.

Some people want to own a truck, and lease purchase is their only current way in. If they are determined to enter into this niche, it helps if they have as much information as possible.
 

ironpony

Professional Pot-Stirrer
Supporter
Point of this thread, way back when I posted it, was for folks to put out information about lease purchase programs they were in if they felt they are good.

The point of putting that information out there is for others who are looking to get into lease purchase programs, so that they may be able to avoid the horrible programs that are out there.

When we post to bash lease purchase in general, it does nobody any good. When we compare lease purchase to company driving or owning a truck, it does nobody any good.

Some people want to own a truck, and lease purchase is their only current way in. If they are determined to enter into this niche, it helps if they have as much information as possible.
And, they should be aware that industry -wide, one estimate was that 90% of lease contracts fail to be completed. That's not "bashing," nor was the that the object of my other post...

#230

In fact, that's how I got my truck. Having been successful at the lease-purchase game, I do not recommend it to others. It is a very risky way to get into ownership.
 

braylean

Well-Known Member
I do agree that most programs are scams. I did l/p at Celedon when they were stealing the fsc, so I know all to well. What I learned from that experience is homework and research and then when you choose a company, drive as a company driver for a while, something my company used to require and still highly recommends. This allowed for two things, one it let's you learn the company, it's routes, reputation and personnel and it gives you time to talk to other l/p drivers in the company. You still have to take what you hear with a grain of salt, but you will learn soon enough who has their act together and can give you a true feel for the programs financial possibilities or impossibilities. The company should be able to give you average numbers but talking to other drivers, you can ask to see their numbers and ask them how they run to be successful and get those numbers. In short order you will know how many miles are possible and can take those numbers and use the numbers you got from other drivers and apply it to you and know whether it is a good idea or not. This is exactly what I did and why I'm succeeding without having to live the grueling life that ironpony referred to above. I have an excellent DM and we both know how to work it so I can always go home without going in the hole. It is as simple as this. I take three or four days off generally and I make sure the pay period cutoff falls in the middle of those days off. My DM starts about two weeks ahead of time to try and make sure I have a carry over load starting the week before I go home and unloading the week I go home. This is usually a 1500 to 2200 mile run and then the load going home gets me close to or over 3k. Then coming out I general get a 2 k run to California with a couple of drops which covers my payment and leaves me around 500 for a check. I also have the option to use a voluntary deduction account where i can have however much held out each week and then use that too make my payment or withdraw it as a revenue check. I will probably use that this year for a vacation or two. Just be sure you do allot of research on any company you consider.
 

braylean

Well-Known Member
They got sued for it a while back. I was there in 2012 I think it was. They were taking the customers fsc and then figuring and paying us off the Indy pump price which was the lowest in the nation at that time, instead of figuring it from the DOE average. We were getting on average .10 to .15 cpm less on fsc than everyone else out there.
 

braylean

Well-Known Member
They got sued for it a while back. I was there in 2012 I think it was. They were taking the customers fsc and then figuring and paying us off the Indy pump price which was the lowest in the nation at that time, instead of figuring it from the DOE average. We were getting on average .10 to .15 cpm less on fsc than everyone else out there.
I don't know if it was ever settled or not, the letter I got from the court said to do nothing if you are taking part in the settlement, so I did nothing and never heard nothing, lol. But it takes years sometimes and I don't care, I figured I would never come out even when I left there and have moved on. If I get a check, yay, if not then who cares.
 

Mike

Well-Known Member
Staff member
Thread starter #237
I don't know if it was ever settled or not, the letter I got from the court said to do nothing if you are taking part in the settlement, so I did nothing and never heard nothing, lol. But it takes years sometimes and I don't care, I figured I would never come out even when I left there and have moved on. If I get a check, yay, if not then who cares.
What was in your contract regarding FSC?
 

ironpony

Professional Pot-Stirrer
Supporter
I do agree that most programs are scams. I did l/p at Celedon when they were stealing the fsc, so I know all to well. What I learned from that experience is homework and research and then when you choose a company, drive as a company driver for a while, something my company used to require and still highly recommends. This allowed for two things, one it let's you learn the company, it's routes, reputation and personnel and it gives you time to talk to other l/p drivers in the company. You still have to take what you hear with a grain of salt, but you will learn soon enough who has their act together and can give you a true feel for the programs financial possibilities or impossibilities. The company should be able to give you average numbers but talking to other drivers, you can ask to see their numbers and ask them how they run to be successful and get those numbers. In short order you will know how many miles are possible and can take those numbers and use the numbers you got from other drivers and apply it to you and know whether it is a good idea or not. This is exactly what I did and why I'm succeeding without having to live the grueling life that ironpony referred to above. I have an excellent DM and we both know how to work it so I can always go home without going in the hole. It is as simple as this. I take three or four days off generally and I make sure the pay period cutoff falls in the middle of those days off. My DM starts about two weeks ahead of time to try and make sure I have a carry over load starting the week before I go home and unloading the week I go home. This is usually a 1500 to 2200 mile run and then the load going home gets me close to or over 3k. Then coming out I general get a 2 k run to California with a couple of drops which covers my payment and leaves me around 500 for a check. I also have the option to use a voluntary deduction account where i can have however much held out each week and then use that too make my payment or withdraw it as a revenue check. I will probably use that this year for a vacation or two. Just be sure you do allot of research on any company you consider.
That's what I did at Prime. Ran a couple of years on the company side before leasing.
 

CMT

Well-Known Member
I know we hear tons and tons of people talk about bad lease programs in the trucking industry, but I just wondered if anybody here has spent some time in a program that they might actually recommend to others.

Myself, I am very skeptical of trucking company's lease purchase programs because the only reason I can figure a trucking company would offer such a program is if they gained from it.

The guy I used to team with back in the day has been driving for RTI out of Kansas City the past few years. He loves their lease program. It's basically a no credit check, walk away lease program. You can choose a variable payment or fixed payment and no payment if you needed to be off for anything. They're a great company with an excellent CSA score if anyone's interested in checking them out.
 

Mike

Well-Known Member
Staff member
Thread starter #240
The guy I used to team with back in the day has been driving for RTI out of Kansas City the past few years. He loves their lease program. It's basically a no credit check, walk away lease program. You can choose a variable payment or fixed payment and no payment if you needed to be off for anything. They're a great company with an excellent CSA score if anyone's interested in checking them out.
So, when they start paying for a truck, how much are they ultimately paying for it?
 
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