3 Reasons why you Should NOT Become a Lease Operator 🚛

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[LtxGhost]

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!

[MarkOPolo]

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.

[TLane-fdee]

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.

[tracek]

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 YouTube 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.

[mistermyself]

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.

[monicarosas]

💯 I have been owner operator and lease purchase. Owner operator is the way.

[lammy]

I know a few lease purchase drivers, they are happy with it

[VBanks]

“IF” you have $25k-$35k for down payment and “IF” you have good credit!😂 Those are some pretty big IF’s🤣🤣🤣

[MG-hkkx]

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.

[quintanaquintana]

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.

[Bendigo]

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.

[salaheldeenmaken]

Priceless nuggets

A big thank you to you.

[justsomeguy]

And 7k a month in payments as O.O. / insurance, lease, fuel, maintenance, emergency repairs.

[generalbubba]

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.

[QALibrary]

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.

[joeseabert]

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.

[TheBlackbudda]

I got my First Truck as a Lease Operator...Ended up paying my Truck off...But again, that was back in the 80's !!!

[Dingbobber]

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

[choppotroublez]

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.

[AsphaltCowboy]

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....