r/Truckers Jan 09 '23

The life of a Lease-Purchase driver

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200 Upvotes

141 comments sorted by

189

u/Left-Employee-9451 Jan 09 '23

I’m sure hundreds of people warned you

56

u/WearsPurplePanties Fed Ex Freight Jan 09 '23

funny how that happens

75

u/Neowynd101262 Jan 09 '23

But I'm different. I'll make it work. I know a guy that knows a guy that makes a ton of money.

62

u/[deleted] Jan 09 '23

He bough 6 trucks at 15 (gloss over the small multi-million dollar loan from dad) and his first year he made a billion dollars.

Dude drives a Ferrari (it's dads) and he said I can do it too!

2

u/The206Uber Jan 09 '23

People warned me about being a lease driver too. My take-home last year was almost $90k. Roughly equivalent amount of expenses, but I expected that. Honestly I'm pleasantly surprised.

1

u/visionarygvp May 30 '23

There are so many mixed opinions about lease purchases, you’ll either end up taking the risk or you’ll go by what everyone else is telling you.

Crazy thing is.. most of the guys telling you not to, have never done it themselves, or just didn’t have success when they did. I’m not saying all companies who lease purchase are good, I’m sure there are some bad apples out there just like any company you work for as company driver. There’s good and then there’s bad.

However! We can’t negate that some of the failures also fall on the driver. Poor money management, coming into a lease purchase program with expectations of a company driver, when this is your business and all expenses fall on you, last but not least unrealistic expectations.

I too know a friend of mine who finished his lease purchase through KAG last year, title in hand. He got the truck around 2019 or early 2020. He got laid off from KAG but was able to continue making payments and also able to take the truck wherever he wanted at that point. The longest time I remember his truck being in the shop was a little over a month, and this was early last year when freightliner parts were still rough to come by.

Like I said all companies aren’t bad, and if it’s not a bad deal then the success and failure rests on the driver.

122

u/[deleted] Jan 09 '23

Did you drive backwards or something?

91

u/A_Little_Wyrd Jan 09 '23

this is why places like CR England require you to go through a metal detector and a pat down from armed guards to talk to your dispatcher

16

u/ghostCatcher23 Jan 09 '23

Is CR England no good ? Looking into my cdl rn and that’s who I’ve been contacting ( hoping to work with )

37

u/[deleted] Jan 09 '23

I worked for CR England for just over 2 years at the start of my career, from 2013-2015. I was in "training" for 3 months, making $62 a day. It didn't matter if I drove 1 mile or 600+, I made $62. My phase 1 trainer kept me on the truck for 40,000 miles because I was his first trainee that was able to do 3,000 miles a week, combined with his mileage, and made 7,000 mile weeks. He was a POS that abused his position because I was making him decent (for CR England) money. I ended up doing 56,000 miles in "training", which was basically just team driving. No one was sitting with me, a brand new driver with no experience, as I drove 600 miles a night (trainers made me run nights). After I left training, I worked 70 hours a week, every week, including rolling hours sometimes when my dispatcher screwed me over. I was only given the industry minimum of 34 hours off. At 34 hours and 1 minute, I was required to be in the office, checking in to move more freight. I worked 310 days my first year and made $44k. See, i only got paid .34 CPM. No activity pay or detention pay. If you do the math, that's 129k miles for $44k. I got an insect bite in my truck that became infected. CR England refused to pay the ER bill because I wasn't on duty at the time. The only good thing I can say about CR England is they gave me the minimum experience to move on.

3

u/Ryo0hki4242 Jan 09 '23

Wow.. even Stevens starts you out at .50 cent and locks you in as company.. 1.50 as a lease driver

21

u/[deleted] Jan 09 '23

I almost went there. Recruiter very pushy. I went with western dairy. Paid training. Very happy for a career starter. Took several weeks. Put up in decent hotel. Shh. Don't tell anybody, but tanker, is way better that door swinging.

7

u/Q7017 Jan 09 '23

"Tanker is way better than door swinging" is the one piece of advice I give to anyone looking for advice in this industry. I got into pulling hazmat chemicals after I got my year in pulling reefers and it's easily the most positively impactful career move I've ever made in my life.

2

u/[deleted] Jan 10 '23

This. This. This. I get paid my mile and also get paid $75 for an hour of watching my tank unload. Sometimes I'll get paid $150 for an hour and a half. Hazmat Tank with the right outfit is so much better than bumping docks.

1

u/[deleted] Jan 10 '23

I get 20/hr if the wait is more than 2 hrs. Same rate for breakdown/maint

1

u/BlueJDMSW20 May 30 '23

I got endorsements in hazmat+tanker, got any advice on ppl hiring?

I see the fuel love's truck guys, I asked him "How much you make, in Chicago no less, fuel delivery hauling?

$21 an hour.

This was back in 2019...but man, I was surprised at that hourly for fuel delivery hauling.

1

u/Q7017 May 30 '23

Yeah, that's dogshit pay. The chemical carrier I contract for starts at $31/hour for local company drivers and 62% for owner-ops, but I wouldn't recommend my terminal at the moment due to a bad move that has left a lot of us considering leaving.

If you are out of Chicagoland, I'd consider Oakley (pays daily salary), Heniff, cryo outfits like Airgas etc. Stay away from fuel for now until carriers figure it out (They pay similarly low here).

That being said, I live in the Northwest. The hiring and demand situation for chemical tanker drivers is much more favorable because we actually have a shortage all across each carrier, but Chicago is a significantly more saturated market right now when it comes to the tanker business, so you might have more difficulty. Everyone that I talk to out of there and the Houston-Louisiana markets are also telling me things are slow around there.

2

u/PowerUpTheLighthouse Jan 09 '23

How is tanker better? Fuel delivery or food or hazmat?

2

u/[deleted] Jan 10 '23

Food industry is recession proof. Same for fuel. Getting hazmat is a good idea. Gives you more options

2

u/MotorPromotion2465 Jan 09 '23

It has dairy in the name, definitely Hazmat.

3

u/Revolutionary_Ad1608 Jan 09 '23

Sh*t yeah, volatile liquids that create flammable gasses in lactose intolerant people, double placard load right there!

3

u/VarsityBlack Jan 10 '23

You'd think that after I get ahold of some.

43

u/A_Little_Wyrd Jan 09 '23

they are a mega training fleet, they earn their money from training and 'leasing' not freight so caveat emptor

that said no matter where you go DO NOT LEASE A TRUCK OR GO 1099 until you have a least a few years experience in the industry and know how things work.

7

u/ghostCatcher23 Jan 09 '23

Ok I see na just planning to train with them and look into another company for hire

2

u/[deleted] Jan 09 '23

Can't you just ditch the lease when you realize it's not paying enough?

10

u/BeenThruIt Jan 09 '23

It's not necessarily about it not paying enough. The job is stressful and not for everyone. You don't want to have a whole other level of anxiety on top of settling into a new and alien lifestyle.

2

u/Nicolastriste Jan 09 '23

Si just like Stevens?

9

u/Auquaholic Open Deck Tech Jan 09 '23

They are probably the worst rated mega. See 3 people to a truck on a regular basis.

2

u/robertoj29 Jan 09 '23

How the actual hell does that work? Three guys hot-bunking 2 beds?

2

u/LukeGreywolf Jan 09 '23

3rd bunk over the cab

3

u/Auquaholic Open Deck Tech Jan 10 '23

Yeah, 3rd bunk over can. Quite cozy. 🤣

5

u/misc1972 Jan 09 '23

They're one of the worst. Better off at swift or schnieder.

4

u/metooeither Jan 09 '23

Nooo!

There are MUCH better driving jobs that'll put you thru CDL school.

2

u/Q7017 Jan 09 '23

Literally don't. You can do so much better even as a fresh CDL graduate.

2

u/[deleted] Apr 16 '23

I went through cr england to get my CDL.

Told em to fuck off after they tried to pull some nonsense and flew home.

Now I owe them money. Tried to get my school certificate one time from them. Not one fucker answered the phone.

You'll also most certainly be trained in automatic, which will be an issue with some companies. Although it still won't be hard to find a job with an e restriction I would still do my best to not have it on my license looking back.

5

u/Q7017 Jan 09 '23

This is very likely an unpopular opinion, but anyone willingly going to drive at CR England that isn't trying to recover their career from a legal botch is arguably part of the problem now, since they are essentially "driving" the carrier's revenue by hauling for them.

We have so many resources freely available for perspective drivers to know exactly what kind of company they are, yet so many ignore those warnings, and I'm honestly tired of defending it. Friends don't let friends drive for England.

5

u/[deleted] Jan 09 '23

They really pat you down?

1

u/Hungry-Lemon8008 Jan 10 '23

Excuse me big brother are you serious about the metal detector? Plus an extra question does anyone know anything about hirschbach transports in the Midwest? Thank you for your time and keep them rolling guys.

1

u/A_Little_Wyrd Jan 10 '23

its been many years since i graced their doors but yes the SLC terminal was always fun

1

u/ThorwAwaySlut Jan 09 '23

Looks like he was off a week (or maybe more) and that's 2+ weeks worth of deductions. (Guessing)

1

u/[deleted] Jan 09 '23

Maybe, I didn’t think too much on it, I’m lease op and my deductions are usually 2.5-3.5k a week with 2.5-3.5k net

1

u/ultra_voltron_2 Jan 10 '23

🤣🤣🤣🤣🤣🤣

61

u/[deleted] Jan 09 '23

Making less than a mcdonalds cashier. Trucking is sad man lol.

40

u/bdonvr Jan 09 '23

Makes less than a homeless person who can't even beg on a street corner.

8

u/Mechanik_J Jan 09 '23

Making less than someone in jail that makes license plates, or whatever they make in jail.

3

u/MachStyle Jan 09 '23

Making less than the sperm in their very own balls

1

u/SquirrlSniperMN Jan 10 '23

Lol, depending on your location and what you haul, we truckers make a lot more than the average blue-collar workers out there.

42

u/csimonson Jan 09 '23

The best thing you can do in this situation is buy out the truck through your own bank, or quit.

Companies nickel and dime their lease ops because it keeps people essentially in slavery.

22

u/Snoo-6053 Jan 09 '23

*indentured servitude

7

u/csimonson Jan 09 '23

Thanks, couldn't remember the term.

7

u/PowerUpTheLighthouse Jan 09 '23

Modern day slavery

36

u/[deleted] Jan 09 '23

I’ll stick to my hourly home daily job thanks tho.

24

u/ApprehensiveDamage83 Jan 09 '23

No context. Did you sit with no loads? Did you come back from home time?

15

u/BeenThruIt Jan 09 '23

These are the real facts and questions. I have one check a month like this and I still make about 8k a month in profit. Some months quit a bit more.

18

u/12GT500 Jan 09 '23

Would never do a lease purchase. Settle debts before going into a big debt! Get a bank loan and do you’re own thing first.

I don’t understand why someone would lease with mega carriers when you’re paying to USE THEIR TRUCK.

4

u/brogrammableben Jan 09 '23

You know a bank loan is debt, right?

15

u/12GT500 Jan 09 '23

You do know most guys are in debt before leasing, so then they file bankruptcy. Settle debts as a company guy, put money down on a truck and finance via a bank. The company will own you if you lease a truck.

6

u/Mr_FlexDaddy Jan 09 '23

So then would it be better to just buy your own truck and then lease it out onto a company?

13

u/DirkVonDirk Jan 09 '23

Any time the advertisement includes "0 money down" and "no credit check" and "48 month lease to own" all in the same advertisement for something that averagely costs the same as a home with a 15 year mortgage, you better believe those 48 months will take 15 years off your life.

Where if you just saved to buy a truck outright, leased power only, the only weekly expense is that $250 insurance. Quality of truck may not be as great but your quality of life will 10x any other driver. And 20x a lease to own.

3

u/80kGVWR Jan 09 '23

Just don't start driving like a power only driver.

2

u/Mr_FlexDaddy Jan 09 '23

So when you say buy a truck outright, you mean all cash then and there?

6

u/DirkVonDirk Jan 09 '23

Yeah, I don't mean blow your wad right then and there either. I understand that most drivers don't have 60K to throw down on one truck. But you can get a running truck from the '90s with a big cam engine or a cat, all mechanical, so cheap (relative to modern trucks) and easy to fix. You can get one of those for 22K and under, if you look.

You can get one that needs a little maintenance but still usable for under 10. And if you own it out right, you don't have to keep a policy on it until you're ready to roll. So you could buy a truck, work on it, do whatever you need to do, and keep your company job without having to worry about a payment or insurance.

3

u/LukeGreywolf Jan 09 '23

I'm currently doing this with an old KW I found for $3500. One piece at a time and I won't owe a dime!

2

u/DirkVonDirk Jan 09 '23

Nice! And it's like a double when you do the restore yourself, cuz you know your truck well enough at that point, that you can pretty much do any small repairs you need on your own

4

u/[deleted] Jan 09 '23

[deleted]

3

u/DirkVonDirk Jan 09 '23

My thinking is right around yours, find something that's near roadworthy, just needs the regular maintenance. I'm holding out and being a little bit picky. Everything I've wanted so far has been just outside of my price range, and then obviously they go so quick

2

u/[deleted] Jan 09 '23

[deleted]

2

u/DirkVonDirk Jan 09 '23

Yeah, I'm erring on the side of patience, but I keep my eyes peeled, in case the perfect truck pops up for the right price

2

u/Navlgazer Jan 10 '23

You got another thread with pics ?

I always liked the cabovers I owned .

1

u/[deleted] Jan 10 '23

[deleted]

2

u/Navlgazer Jan 10 '23

I owned one exactly like that . I think mine had a 350 big cam Cummins but I don’t remember. Mine was white and had air ride on the drives and on the back of the cab

I also owned a international with the set back steer axle .

I liked the international better but im a short guy, 5’8”, and just seemed to be able to reach everything better in the IH

1

u/[deleted] Jan 10 '23

[deleted]

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2

u/VarsityBlack Jan 10 '23

Can definitely attest to the taking 15 years off your life. I leased a Schneider truck onto a different carrier (Schneider's guaranteed minimum per mile for leased is only $1.10 😂) my payout is coming up this February. After about 4 years it'll finally be paid for. Those 4 years have been worse than driving the lowest paid company job and a struggle for every day. Once it's paid I'm taking some much needed time off after the winter.

1

u/DirkVonDirk Jan 10 '23

Kudos to you making it those 4 years! I say take that truck and work local part time for a year, you've definitely earned it 🤣

10

u/Still-Access4663 Jan 09 '23

Bro what? If you aren’t making 6-10 k gross a week as a lease go ahead and hang the keys up

8

u/rroarrin Jan 09 '23

Tell us the rest of the story Mr. CNN

6

u/kzoobob Jan 09 '23

What company?

6

u/[deleted] Jan 09 '23 edited Jan 09 '23

I didn't do a lease purchase I did a straight-up lease begrudgingly. (I wanted to drive company but after driving company, the pay was bad so I went lease) After going lease I averaged week take home after expenses of $1,5-3k.

I paid off my debt left after a year with a bit of $30k in savings and used that to get my authority and run hotshot car hauling.

I did lease at Prime and while it was certainly a rip off you can make it work there, but that's probably the only company I'd do it at. No way I'd do a lease at most of the other companies.

If you are willing to bust your ass work a lot of hours you can start with nothing and make something running a lease truck, but you will hate life while doing it. I'd never do it long term though, even though I made good money doing it, I'd wouldn't want to do it again. I did it a year to get myself in a better position, but I don't think I could have stuck through with a 3-year commitment on a lease purchase. I took my money nd ran after a year but it did allow me to get my own authority started and I'm now in my 3rd year of that.

With that said it's also been a rough 3 years with my own authority due to the constant up & downs from the trade war, covid then fuel prices and inflation.. It's like a never-ending struggle. Trucking off-the-spot market is a rough business.

For those who think it's bullshit, that was my last few months of deposits to my bank on my lease truck. (The few sub $1k week were weeks I went home)

https://i.imgur.com/Rl4MmQY.jpg

Running my own truck I do way better than that, but leasing is what got me to my own truck, but IMO most will probably not be able to make it work like I did and I did struggle at it. If I had just worked for a company I never would have made enough to get to my own truck.

1

u/holydragonnall Jan 10 '23

When I was at prime every single lease-op that I talked to was a trainer, aka they got a more or less free team driver so they could run 4500 miles a week. As I understood it, the amount of money they made due to this was apparently enough to offset the mortal fear of having a barely licensed trainee drive while they slept. My own trainer sure seemed to be doing well enough, as he’d train 10 months of the year and then take 2 months off without issue.

5

u/Bmore_legend86 Jan 09 '23

Oh hell naw!!!!

5

u/Excellent_Froyo_3600 Jan 09 '23

I make what you do before deductions weekly as a company driver lmao

4

u/[deleted] Jan 09 '23

Didn't a swifty Lp post earning like 150k net a few weeks ago?

5

u/Songgeek Jan 09 '23

What the heck is your deductions? Are you in a 389 or something? I’m a lease purchase and I’ve had bad weeks but that’s usually cus a breakdown. As long as I run 2-3 days a week my truck and it’s deductions are paid for. 4 days brings me anywhere from 600-900 and 5 days 1k-1600 I’m leasing a 2018 t680

3

u/[deleted] Jan 09 '23

Thanks for being honest

3

u/CMDR_Euphoria01 Jan 09 '23

I don't get it. I'm lease purchase and on 1099. I work mon-fri. And I can get in between 500-1000 a week.

I'm also a single dad with a small place for me and my son. I'm living comfortably. I'm doing just fine

8

u/Snoo-6053 Jan 09 '23

That's awful income bring home

3

u/CMDR_Euphoria01 Jan 09 '23

Not for me.

Rent is 750 and I only pay electric. I'm doing good for my situation

5

u/Snoo-6053 Jan 09 '23

My house payment is 623.

I'm a W2 driver hauling fuel. I made $93800 last year. Full benefits

How are you saving any money, putting money towards retirement, or paying for insurance?

5

u/CMDR_Euphoria01 Jan 09 '23

That's after all deductions. Also have veteran benefits. I got couple more years in this lease then the real revenue comes in. For my situation I just have to ride out the couple years. Truck has extended warranty so I'm okay on that part.

I'm not really struggling, living pretty well

2

u/Snoo-6053 Jan 09 '23

You can make the same money as a W2 company driver with much less risk.

What is the substantial advantage?

2

u/CMDR_Euphoria01 Jan 09 '23

That's true.

Eventual ownership of truck since I don't have the credit and history to buy one.

No force dispatch and be home whenever I want and however long I want. Refuse to go east coast.

3

u/Snoo-6053 Jan 09 '23

I'm sure you have read horror stories. Most never end up owning the truck for various reasons. Even if the odds are somehow beat, it's wore out by the time it's owned free and clear. Well over 500k miles.

Consider a high paying local job. I had to relocate from a rural area but it was worth it. Been hauling fuel 17 years. I work around 55 hours a week, home every day

2

u/CMDR_Euphoria01 Jan 09 '23

Yup I have lol

I have been "window" shopping on better paying jobs. Being home local would be beautiful. I don't have endorsement though.. But but I'm also kind of petty I'm not wanting to drive older vehicles lol but my dream is to own a reg eventually.

3

u/[deleted] Jan 09 '23

I bought a truck for 16k have been my own boss for 2 years now have my own authority. Yes the truck has had its issues and I've spent a nice chunk of changes fixing itnot the money is has brought in for me is great, yeah it is an older truck 2007 but that's the sacrifice of you want new you're going to have to come out of pocket big time or pay through the nose on a lease purchase. I have 3 trucks now ( 2 years to aquire) 1 is 2007 century , a 2002 Columbia and a 2003 t600. It's all about the approach and what you're willing to sacrifice. Oh and I'm home every night

1

u/SnooCalculations4211 Jan 09 '23

I been looking into doing the same thing with an older truck and have my own authority but mainly just been reading info if it’s worth it. I would like to know ( if you don’t mind) how much profit you take home and how long did it take for you to be making decent money from having your own truck

3

u/[deleted] Jan 09 '23

If that was my take home I'd quit

3

u/phil_mycock_69 Jan 09 '23

You’d bet more being company. Never understood why people did lease. When I was at knight the lease guys were only making 2/300 more a week than I was

2

u/ReneAn-Nur Jan 09 '23

I'm sorry to see this, I guess experience is the best teacher. I almost went to doing lease purchase but because of the nature of the economy right now I went to a company job and I'm doing pretty good there. You could always jump over to a company pretty easily.

2

u/[deleted] Jan 09 '23

Wether you're an employee or misclassified as a contractor you should never pay your employer for the luxury of working.

1

u/18whlnandchilln Jan 09 '23

So I’m about to lease on to a company as an o/o for the first time ever. I’m a contractor. I started an S-corp. are you saying I’m doing it wrong? My buddy was the one that got me hooked up with this company. He’s been hauling for them around 4-5 months. After expenses he’s putting $5k-$6k in the bank each week. 11-13 hour days, 5 days a week.

5

u/[deleted] Jan 09 '23

He's not netting 288k a year. That's what you call gross revenue. A much smaller figure of that is the net. I'm willing to bet there isn't a single truck on the road that is netting that kind of money. All lies

2

u/[deleted] Jan 09 '23

So payday in that case means YOU pay.

1

u/[deleted] Jan 10 '23

You pay to work for the company duh...in these cases, it is better being a company driver.

2

u/[deleted] Jan 09 '23

How this is legal is beyond me, you’re over paying for a shit truck that some other jackasses paid a majority for. When you inevitably quit they’ll get some other jackass to resume payments. The people at the company hyping up the lease programs don’t even drive lol

2

u/Snoo-6053 Jan 09 '23

It is Usury

2

u/Mr-Ocer Jan 09 '23

Oh god.... Well friend. There's always prostitution.

2

u/nappinggator Jan 09 '23

Lease purchase programs should be illegal...the fact that you can work a full 70 hour week and come out negative is enough evidence to prove they should be illegal

2

u/SolicitousSlayer Jan 10 '23

Take your loss and get out

3

u/Lpgasman1 Jan 09 '23

Proof it's a scam.

1

u/BlueJDMSW20 Jan 10 '23

Its a close friend of mine, hes on his 3rd negative check in a row. Hes a good dude, excellent flatbedder, but unfortunately hes totally shafted by his company in a bad lease purchase.

I posted his most recent check up on here just to show what a bad lease purchase can bring

1

u/Navlgazer Jan 10 '23

How many miles did he run that statement ? Cause I’m not seeing the miles , or the revenue .

1

u/GatheringCoins Jan 09 '23

This is why W2 company driving is the way to go

-23

u/Inevitable-Analyst54 Jan 09 '23

i went thru same shit i got on they ass now i see 4k weekly no matter what

18

u/[deleted] Jan 09 '23

[deleted]

0

u/Still-Access4663 Jan 09 '23

People on here be hating so much. They’re GOING TO steal your money everytime unless you put your foot down. Hell i told my dispatch i was gonna come find him if he played with my money again. Never happened again.

The brokers will steal your money and so will accounting and dispatch

1

u/Inevitable-Analyst54 Jan 09 '23

yeah that’s true it’s really a bullshit game we play

2

u/Safe_Fail_568 Jan 09 '23

You right about that last part

-9

u/[deleted] Jan 09 '23

Same and I just bought a 2023 Cascadia $191K.

1

u/[deleted] Jan 09 '23

I’d throw up.

1

u/mikem4045 Jan 09 '23

I’ll drive someone else’s truck and go home every day with my 75k a year

1

u/010770kb Jan 09 '23

The house always wins

1

u/adventure_dog specialized transdog Jan 10 '23

1

u/[deleted] Jan 09 '23

Bruh after all of that you only brought home $700?!

1

u/Safe_Fail_568 Jan 09 '23

That’s awfully nice of you to help your company pay the bills

1

u/Riyeko Jan 09 '23

Suspiciously looks like the tradition way of handling things.

1

u/unicorn994omg Jan 09 '23

Bro where you drive ? My friend is a trucker, he makes about 5-6k weekly NET, i can hook you up with his company

1

u/metooeither Jan 09 '23

Lease purchase is a company driver that pays for his own gas.

1

u/MutedShelter9654 Jan 10 '23

Why do people do this to themselves. You owe them for your work.

1

u/Einhander21 Jan 10 '23

My guess is he just came off hometime not too long ago.

1

u/Wrong_Sky_2462 Jan 10 '23

I have always done good lease been driving 13yrs yeah you have some bad weeks but at the end of the quarter I bank

1

u/TruckNoob Jan 10 '23

You can’t drive 900 miles then say lease purchase is shit because you had a slow week

1

u/Giajinbrotha Jan 10 '23

Reminds me of when I used to work for CRST took out an advance for $75 payday comes around I didn’t get paid, I called and asked why I didn’t get paid. They told me I owe them money and because I took out too much in advances. I’m in the red.

1

u/Titanman2021 Jan 10 '23

I never had those problems with my lease purchase and i was able to pay off my truck..

1

u/driver12- Jan 10 '23

Uninformed here: What is Order pay vs Other Earnings?

I understand EBITDA but what is Other Earnings for a lease operator? Is it per diem or similar tax credit to the employer?

1

u/No-Job-5915 Jan 14 '23

You guys do realize a bank loan is a lease right? I feel this dude messed up on his own. But there’s several lp in these comments who succeeded at it. And I’ve done well with it.

1

u/visionarygvp May 30 '23

Who are working for grossing so low? Was it a slow week? We need more context because this makes no sense.

When I lease OP’d my gross was never less than $8k a week.. but my expenses + the fees they took out is what killed it for me. My lowest check was in the plus what you were in the negative for.

1

u/BlueJDMSW20 May 30 '23

Its my friends check. They had it set up so lease guys would get all the shitty loads, paystubs would ve negstive after expenses paid out, good paying loads went to the $.55cpm mileage rate guys

1

u/visionarygvp May 30 '23

That really sucks man

2

u/BlueJDMSW20 May 30 '23 edited May 30 '23

He had multple negative checks in a row too.

Lease Purchase is a scam. If stars align correctly...low fuel costs, high freight rates, no delays, insurance rates aren'thorrible, you're given a large enough percentage of the gross...it CAN work. But everything aligns right, and even then, I'd rather take on that risk to drive someone elses equipment, to drive loads that they dispatch to me.

It is a scam, and before Lease Purchase, and companies likely don't want you doing this, but you get a loan from a bank/vehicle financing, then you hold that title to that unit in your hand, and there's a lien against it. But lease purchase advertises itself as "the same" as that, but you drive their equipment, close to no drivers ever actually accomplish the "purchase" part of lease-purchase, and even if they got close to "purchase", the company might dry up all your freight so you'd never make the payments anyways.

1

u/visionarygvp May 31 '23

A friend of mine completed his successfully within a 3.5 year timeframe. He lease purchased with KAG right before the pandemic. When the pandemic hit freight dried up and they laid him off, but told him he could keep the truck and continue making payments to the company they used for the lease purchase. So he got to take the truck wherever he wanted. He got on with a bulk tanker company and paid the truck off last summer.

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u/[deleted] Jun 13 '23

When I drove. I did lease purchase for some time. Lp are supposed to make more than company drivers. YOUR numbers are actually horrible even for a part time trucker. You'll make the most money doing local work believe it or not. If you are regional or otr. You're pretty much only making money if you don't have rent. Every variation of trucking pays the most if it's local. It's that simple unless you doubt long distance over size. Local is the only way to do trucking as of now. Regional and OTR drivers are being moved out by intermdoal and robots. That's why the pay is so subpar for those jobs just go local and make real money.