3 Reasons why you Should NOT Become a Lease Operator 🚛
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- Опубліковано 30 вер 2024
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JUST MY ADVICE/OPINION and long story. Take it with a grain of salt.
In May of 2016 I began my trucking career as an OTR team driver. We would run NC-CA every week. Every week I would gross around $1,200.00 and net around $1,000.00
I always tried put back 200-250.00 every week I could but life still happens.
By January of 2019 I had saved up close to $20,000. I began seeing the writing on the walls as far as the trucking industry goes. I was ok with my 50-55K a year salary, gone 5 home 2 schedule but I wanted more. So I took the plunge. I spent 12K purchasing a 2007 International 9400i with the small sleeper. If I remember it was a 51” mid-roof. It wasn’t much to look at but it had a 15 liter Cummins. The truck had a little over 500K on it when I purchased it. I decided to keep working and spent the weekends I was off just going through the truck. I replaced the fuel filter, lift pump, air dryer, brakes, some older lines that looked like they were ready to go at anytime and did my due diligence and replaced the older dry rotted Drive tires it had on it. All in all I was in the truck 15-15,500$
In September of that year after saving up a little more money I went ahead and applied for my own authority and got the truck insured. I opted to do the payments instead of all at once because it was going to literally cost me over 10,000.00$ if I paid it all at once. But I still had to put 3,000.00$ down as the first installment. After searching and searching I saw a used 2001 JB Hunt Utility Dry Van Trailer. The gentleman who owned it was only asking 2,000.00$ because it needed new air lines, brakes and tires. It leaked water from the front roof and the wiring to the tail lights didn’t work.
I purchased it from him with the agreement I could keep it there for a few extra weeks while I worked on it to get it road worthy. I paid a local shop to fix the brakes and tires another 2,000.00$ and I fixed the leak in the front and put new wires on the trailer from the pig tail back and it friggin worked. After spending another few days tracking down some miscellaneous parasitic air line leaks it was finally road worthy.
By this time I was pretty low on Funds so I cashed in my 2 weeks of paid vacation with my company. I literally only had 4,500.00$ to my name. I spent a few days afterwards looking on DAT load boards for anyone who would give me a chance to haul their freight but no one would because “I WAS A NEW COMPANY”. But I didn’t give up. I kept cold calling. With some grit and determination a company finally gave me a chance. The company posted an Agricultural load out of Michigan to pick up Potatoes and bring them to VA. The load paid 2,800.00$ and they needed it done ASAP. I dead headed YES EMPTY ran 600 miles to pick this load up the same day, and drove it straight down to VA the next day. Another 600 miles. The load was heavy 46.5K in the van( total gross loaded to 80,000 )and really put my truck through its paces but “Blue” what I called my truck made it. Then here’s something no one told me. ( I didn’t know ) you don’t get paid on the spot with most brokers. It usually takes 15-30 days to receive payment. After YOU invoice them. I did a few google searches and found a factoring service that by the grace of GOD agreed to factor my load for 3% if I agreed to not use any factoring service but them for 1 year. I decided to do it. Because I needed to get some money back in the bank.
I called the broker I hauled the tater load for and they said “I did a great job with their load” and asked could I do 2 a week for them until March of 2020 for MINIMUM 2,800.00$ each. but could be more if I loaded more. I agreed I could do that for them. They asked me would I be interested in doing a back haul for them picking up in the same city I delivered to. It only paid 1,000.00$ for the 600 mile North Journey through the mountains of WV but it was better then running empty that far.
I didn’t realize it at the time but I had found my “niche” after a few weeks of fine tuning and avoiding the Pilots, Loves and Flying Js high fuel prices I was able to get my loaded cost to .89 a mile. I NEVER DIFFERED empty to loaded. Every odometer mile I drove I put .89 back. I paid myself 30% of the Gross load and put everything else back in a separate account.
I would leave my house Sunday afternoon dead head 120 miles to my pick up. Sleep in VA, pick up my load Monday morning, fuel after getting over the mountains in WV and deliver my load Monday evening. Drive to the tater farm under the 150Mile agricultural exemption, sleep. Then pick up my tater load Tuesday morning and bring it down to VA by Tuesday Night ( Parked at their facility ) delivered it sometime during the night or early morning; make my pick up later on during the day (Wednesday) and run back to MI for my delivery Thursday morning. I would usually be at the farm for my pick up same day by lunch or a little after depending on unloading times at my morning delivery. I loaded my taters and had them back in VA for delivery by lunch time Friday, unload then dead head back home. 90% of the time I was home Friday afternoon, the other 10% VERY RARE I was home Friday night. I’d spend Saturday morning greasing my truck and trailer, checking tires, brakes, bushings, lights you name it. If there was ANYTHING I didn’t like, I’d fix it right there. No point in paying roadside several hundred to even a thousand dollars to fix something I could have fixed while home.
After working hard for over half a year and building up a sizable business account I decided it was time to add another truck to the fleet. I chose to lease a 2016 Volvo from a leasing company. 10K down, 1,900.00$ base charge plus .9 a mile. However MAINTENANCE and BREAKDOWNS was 100% on them. (Minus Tires) The Volvo literally got 1.5MPGS better fuel economy then my Old International and rode 10X better. It was the best decision I ever made. I purchased a used 2002 Utility Willis Shaw Reefer for 7500.00$ Went through it like I did my Dry van and put it with the Volvo. A friend I used to team drive with made the leap of faith and joined me. The rest was history. I grew to 7 trucks.
5 Volvo Leases
1 International Owned
1 Peterbilt Owned
If you work hard and stay determined you can do anything you put your mind to. Thanks for reading!
THIS is what we all hope is going to happen when we get our truck. Great job man! This gives me hope for my company for real
Man you just gave me hope to pull the trigger on starting my own trucking business
I wonder if you have a family? I would have probably done this before I had kids and a husband but it sounds like non stop work! Not that you have a fleet, do you get more time off? I’m currently looking for a local trucking job out of Charleston,SC.
Would you call insane how much you made a week off your 1st owner operator truck
holy shit what a read. extremely inspiring thank you for writing this
The one thing that I have learned in my limited research about being a lease operator is to not lease the truck from a carrier. Instead, lease the truck from a company that sells and leases trucks. That way, you are able to lease on with any carrier that you want just like an owner operator can.
Hence his first 2 things.
If you have the down payment.
If you have good credit.
How do you go about that
Like what companies
@@zhukunta7211 I would start with Ryder and Penske.
A lease purchase program is not bad at all. It helps someone wanting to become an owner operator or to start a business after paying off the truck. Of course it’s stressful, because you’re your own boss. It’s no different than starting any other business. And as long as you take care of your truck, you will pocket more money than spend on maintenance. I’ve met several lease operators that take home over 9k a month after all expenses. The ones that live on the road take 16-15k after all expenses. So guys, don’t believe every thing you see on UA-cam just because it was said with confidence. Lease op gives you the potential to make money and sky rocket your credit score and pay off all of the debt you owe that company drivers struggle to pay because they don’t get paid half of what you could make. If you don’t work, you don’t get paid.
You said it: “I’ve met.” You didn’t say I am an owner operator.
Lease operator, the never ever plan
“IF” you have $25k-$35k for down payment and “IF” you have good credit!😂 Those are some pretty big IF’s🤣🤣🤣
I stopped buying trucks 4 years ago. I lease brand new trucks (not to be confused with lease purchase or lease operator) and can run them with any motor carrier or my own MC authority. Full maintenance & PMs. Monthly payments higher but stay running with no out-of-pocket maintenace expense. This option is least talked about.
Yo do you have an instagram so I can ask you some questions
I have my own Mc and own two trucks but I want to go this way. Do you mind me asking who you use to lease from?
@@Goblin2396Penske, Ryder, Lone Mountain….
If you have 25-35 cash, buy a used truck, cash. No monthly payment means lower overhead.
When my used trucks park they get the same check as a new truck.
They are all hauling upto 80k# and driving thousands of miles a week. They all break down and new trucks are more expensive to fix. You still have a note if its new or financed and people will keep your truck for weeks and weeks. Even dealership mechanics.
Where are u finding trucks 25-35k
Ya but a used truck breaks down way more often than a new one. So it actually kinda evens out in terms of costs. You might as well get something new and it'll last longer.
@@bebo2490 No they dont. 80k lbs moving 80MPH will break. They all break down. Improperly maintained trucks do more often. Age isnt he problem when you have trucks from the 80s still rnoving every day. The new ones cost way more to fix and you have the payment too. When a mechanic takes 2 weeks to even get to your truck, if not longer, your thousands into a job that hasnt even started. The difference in cost of a new truck is more than enough to get another truck in prime shape.
When that new truck parks it gets the same rate as the older truck.
@mistermyself1128 I know what you mean, miles doesn't actually mean it's more likely to break down. But when a truck has miles, there is a way better chance it will break down because most drivers dont take care of their truck. New trucks are not abused and have a prefect maintenance record since there Isn't one. So yes they cost more, but they are on the road more than old ones. I'd just rather have a truck that I know for sure it has been kept up. It would have to have all maintenance records and it shows it's been taken care of and on time continuously
@@bebo2490but usually depends on the maintenance program of the previous owner
I got my First Truck as a Lease Operator...Ended up paying my Truck off...But again, that was back in the 80's !!!
Definitely a while back but still... nice!
😂😂😂😂 no headaches upgrade every 2 yrears leave lease ANY TIME no downside to lease
There are a couple downsides that I can think of XD
I know a few lease purchase drivers, they are happy with it
Thats its always few😅😅😅😅😅😅
Yes, exactly right. Confuse and abuse is the name of the game. Besides, if you just got your license you need to be fucking up someone else’s equipment. Don’t even bro, you will fuck up. At minimum hit a column at pilot fuel lane.
💯 I have been owner operator and lease purchase. Owner operator is the way.
How has it been for you as an owner operator
@nolimittezz2107 Hi I sold my truck about 2 months. I'm coming back for company driver for now with this market
Lease operator....so bad yet so goooood....lol...NO its simple trucking is and always has been a single person job, no family men allowed...so now every man and woman 4got to stay simple...I drive according to my house bills...company or Lease or owner does not matter ...if yur home life costs you 5,000 a month (includes everything, give away money, fix it money, I'm buying the bar money, baby can I get some money, etc) You have 30 days to get that money how evvveeerrr you can...U CAN ALWAYS NEGOTIATE LOADS...To fit your lifestyle b4 you hire on and get it in writing or get the lease and take it to lawyer and have them understand you...only agree if you can handle it 24/7 all year...meaning your going to the funeral in your suit with truck loaded....you will be free when you're dead, so y bitch...it's Trucking...Men don't get what they want they only get what they NEED...SO move along and sleep well U Silly Dilly 😀 😉 👍
Guess I guess I’m signing on as a lease operator because I don’t have $25,000 and I don’t have a good credit lol. But I’ve been at least operator before I decided to leave over the road and I was making good money then.
If you have your own truck do you have to do your own drug test? I ask because only thing stopping me is i like to smoke weed when im done with work. A plant
If you lease a car you don’t keep it so what’s the big deal the lease is a means of income for those who don’t fit the buy a truck criteria yet.
Because its known as a lease purchase. You lease the truck for a while with the understanding there will be a balloon payment at the end and then you own the truck. While leasing, you are paying for all your own fuel, maintenance, etc. Companies that screw you over will kill your pay right before your balloon payment so you can't make it, you violate the contract and they get the truck back. It keeps going on forever like this.
This just a trucking recruiter, wouldn’t go by anything he says.
Are you thinking of getting scammed? Just become a lease owner operator 😂😂😂😂😂
😂
It all depends on who the carrier is. There is a lease program where I work & they treat the lease operator very well. At the end of the lease they are offered the opportunity to purchase the truck outright for a very fair price or continue leasing on another new truck. So therefore not all lease programs are bad. Do your research before you commit.
Knew a lease operator at challenger and when we compared our pay statements they were basically the same within +500/-500. All super heavy loads from Cambridge running to the east coast. She barely managed to finish the program but now owns the truck.
Are you an owner operator?
Not targeting you at all, but either she’s putting a shit ton of it in maintenance account or she hasn’t been hauling as much as she says she has. Lease ops make a lot of money if they stay on the road.
@@trace1k478 Stay on the road like a slave…
@@eara8426you just have a bad mindset. Nothing in this life is free. You gotta go earn it. And clearly you don't know what a slave is. OO make great money if you put the time in.
As a owner operator, I AGREE with this advice. If you become a lease purchase operator you become a slave to the company and if you leave. The truck stays behind with the company.
Hi . What to do if already signed? And have pays off truck , but company says , you can't get this truck and continues charging all maney..
This guy is a joke being a lease operator is a heart way to get into the business
Lease Purchase; Why pay someone (company) to drive their truck taking a bigger risk on (usually) used equipment that'll sit down on you being in the shop moreso than on the road?
Good question!
Excellent advices.
Thank you
With all due respect to you and what you do. If drivers aren't in the position to become an owner operator without a lease operator program to help. They should probably not be an owner or lease operator.
Lease operator is a glorified Owner Operator!
@Thomas B you’re right on that ! But,also they play the game almost at the end,like telling you there’s not much freight and give you short runs to make you fail. That way,they keep the truck and leased to another driver. That’s another crap they do.
@@turbo12v I think that's the trick they are always playing to keep you around them because most guys who finish the lease and be on their own always fails... So it's better you have your own truck no matter how old it is...
@@turbo12vbut that's where you tell them indirectly to get fucked and you contact brokers yourself and start getting your own loads like an owner.
And 7k a month in payments as O.O. / insurance, lease, fuel, maintenance, emergency repairs.
If it was a good deal, they wouldn't be pressuring drivers to Lease
True that, it'd be the other way around
for starting out it’s something to jump start your business
Explain your view point
What happens if your truck breaks down then your screwed
There are pros and cons to everything man!
This guy has no idea what hes talking about.
Don't ever lease for whatever reason unless you have a 100% risk free contract and can walk away without any penalties but besides that, you're basically wasting your money....
I went from company driver to lease driver now for 3 years o/o with same company.
That's awesome!
I cosign everything he said. Agreed 👍🏾.
Thanks for the cosign!
A lease operator is much better, if you get the lease in your own name. More capital, maintenance is usually covered if you do your research on the leasing company, and you don’t have to deal with market prices when you have to get rid of your truck because you just get a new one when the lease is up
I've only considered being a lease operator so I can do the speed limit (70mph+). That's the only reason
Whaaaaaaat
This is the smartest comment in this comment section. 😂
What if your a lease operator with walk away option?
Then I'd suppose that would be a boon wouldn't it?
A successfully did a lease purchase through a company but they were a small company and really great if at any time I quit or got fired I was able to keep the truck and the lease as long as I just made my payments still.
Don't be stupid drive a company truck
My company has a lease program where there’s no commitment. I’ll likely double my income by taking these extra responsibilities. However when I exit the lease I do not own the truck instead you have an option to buy the truck once it’s up for sale. Basically glorified company driver that’s self employed. Thoughts? 🤔
Don't do it.....
ANYBODY WHAT ABOUT PENSKE OR RYDER TRUCKS? Is there a down payment?
I wouldn’t do a one size fits all, however not a lot of people have 25-35k for down payment. Some dealers want 50-60% down to get into a used truck. I decided to lease, I did all research before I got into it, the pros and cons. If you can’t manage, have common sense, problem solve or drive of course I suggest you don’t do it.
Leasing ??? Its like signing a contract for keeping your ###### lubed all the time and promising for not wearing underwear
Smh most of this is bs. The peeps making 30000 and running and have 0 business knowledge. Period
A few years ago I was reading about how low lease operators finish the lease and thus own the truck outright.
It was like 4%
Due to the millage you do at the end of the lease you need a new truck and sometimes it is linked to the company you are working for as well - you are only allowed to work if the truck is no more than X old.
The final part is the company you leasing from is moving all the negatives and liabilities from them to you - so as a lease operator you are taking all the risks and you also can not move jobs until that truck you are driving is paid off.
I thought with lease u can always back out
Yes most are walk away leases. They can't force you to buy it
@@user-gs9ov4yg7t Not every lease its walkway.
Lies
I watched one of yalls videos saying how awesome a lease operator is…now saying its bad?! 🤔😂😂
@Thomas B ummm yea I watched the video...LOL
Priceless nuggets
A big thank you to you.
Another thing too is in a lot of cases, once the truck is almost paid off companies will garnish tf out of your miles so much that you will default on your lease and get their truck back. I hear C.R. England is terrible about this.
You have lease that you can move your truck and also sometime doing a lease is good and then you can refinance the truck after like I did
Facts
Thanks for watching!
Not become a twuk dwiver in the first place
90% failure rate, enjoy very little time off or u will fail..
I’m a lease op and I can walk away with no penalty whenever. Plus I get nearly 30k after the completion of it. I get I’m paying for the truck and half of another but I don’t have to worry about if I get hurt making that payment or if I get tired of driving I can walk away.
What company?
Prime 😅😂
It is always a bad idea to lease a truck from the same company you depend on for your revenue, ALWAYS.
Ok I'll go lease one
Edit: Terrible Idea. I work local now. Will be o/o local in 2yrs from now
Don’t do either
Get your own authority and stop getting scammed by all these companies
Great advice. SmartTrucking guy calls it the never, never plan
one of the things you should do is learn how to work on your own truck
I'll give y'all one good reason to NEVER sign a lease purchase. Smart trucking summed it up....the never never plan. Unless u have the credit/cash flow to buy a truck on ur own, be a company driver
100% correct. Never ever do this. Save and buy a truck for cash
Weekly payments!😮
Fleece purchase 😂
What does anxiety have to do with anything ?
Everything? 👀
How much a truck to start in this business cost?
Used or new? Low miles or high? Daycab or Sleeper? Automatic or standard? APU or no APU?
Don’t do it run
Lmao 🤣 don't
Dont do it!
Hell no.
NO
Salman Khan 😂
You forgot common sense buddy
You have pain in your voice bro
🤣
"captive" lease-operator
haha!
#3 made me laugh 😂
basically, no company is trustworthy and you’ll always be looking over your shoulder working for mega carriers because they can let you go anytime they want. owner operating will provide you the freedom we all desire besides dealing with DOT.
Reason number four… Why take on all of the extra risk and responsibilities just to make less than a company driver? I’ll keep holding the steering wheel of my company’s truck as long as they keep me averaging one dollar plus per mile.
Buy used truck cash, If anything you can park it and work driving as company driver driving there truck while saving til you feel comfortable to used your truck if the rate or bills are high. Also no one will repo your paid for off truck
No way just pay me to drive.
As a lease operator, I agree with this
As an owner operator of four years this fellow is right. Own authority is the best way to go in any of this trucking mess but right now is not the time to try and run ya own authority. You will lose unless you have contracts with customers where you are locked into a settled rate or what have you. But trust me least operator is definitely not the way to go and independent owner operator really isn't either unless u really do ya home work because of company u least onto and their bills and over head. So yeah. Honestly trucking is crashing and going into recession if not already in it It's a business and sometimes businesses do fail but hopefully it will come back up if one of those Nancies up top don't risk it all to try something different..... Lol if ya know what I mean.....
3rd is king
You think so?
I’ve done both lease and owner operator with my own MC # and I tell you right now. The whole trucking industry is a big scam.
You should also never exit the cab like that dude did, you're asking for injury if you do
Excellent advice sir
Thanks for the feedback!
You have a Lease program at your comp
Any😂😂😂😂😂
As a truck owner, which companies are best to rent your tucks to?
No more money in Trucking it’s like working minimum wage
When they said Flat bedders can’t back they weren’t joking
Ill start with a 1982 ford f850 i got for $300
Thank you!! I was in that dilemma these days and with this short video you explained it very easily
Is it a good idea to talk to companies that do not post their pay rate for flatbed
It’s about time you finally said something true.
A job not worth doing , is a job NOT worth doing well.
How many years do you think it would take if you worked really hard when you first get your CDL to buy one of those 400k-500k Super sleeper trucks with the shower and bathroom in them brand new and I’m talking by it and get the title no finance
Those are heavy and can’t haul a thing .
@@Liniante oh yeah you can’t go over 80k total and you need special oversize load to haul more I forgot about that
I want to become a owner operator
It's a trap!- General Akbar😂
#3 Good lawd..lol
3 conditions I'd accept to be a lease operator:
1- Make payments by percent of my pay (carrier gets paid when I get paid)
2- Pay monthly, but be guaranteed a base rate, otherwise no payment is owed for that month
3- Pay monthly, but be allowed to use truck for other companies
Never heard of these arrangements from the mega carriers, but some van line agents and other carriers will do it. If they feel confident their truck is profitable to have and they value the work you put into it, they should be willing to go for one of these options. If not, you don't want to be working for that company, company driver or otherwise.
This is great advice and not one you often see on you tube