Newer trucker here about 9 months. Any insight on the pros and cons of leasing? Like how long is the lease? Are you leasing to own? Trying to do as much research because i am definitely interested in taking the next step
I can only speak to the company I’m with but for me there aren’t many cons overall besides still having to make various payments when you take time off, which is true for any lease/owner op that has a truck payment, insurance etc.
My lease is 3 years, I can end it early but I’ll lose the excess mileage money that I have paid into the truck. Once the 3 years is up I can buy the truck for a final payment and the excess mileage fund gets applied towards the payoff amount or I can renew the lease and have a lower weekly payment until the truck is paid in full. I’m not doing either and once the 3 years is over I’ll be getting a new lease on a brand new truck that has a 5 year/500k mile warranty, rinse and repeat until I retire, this saves me ever having to pay out of pocket for major repairs, registration, tax on the truck.
I did lease op for 2.5years and been o/o for about 4 months now.
Do your research.
There are far too many more predatory lease programs at companies than there are decent ones where you can not only make money but keep it too. There are certain protections you have as a company driver that disappear completely when you make the jump. And (for the most part, there are exceptions) if you’re someone who likes/needs to be home more than once every 5/6 weeks minimum I would strongly recommend not doing it.
Every day you’re not working is a day you’re not making money and unlike being a company driver, as a lease op your paycheck CAN go into the negatives. Those expenses come out every week regardless of whether you ran miles or not. Depending on the company you may also be liable to pay for any hotel stays/repairs out of your own pocket if your truck breaks down.
You’ll need to find a good accountant that is experienced in doing truckers taxes and save every receipt you can to help towards deductions. Along with also being able to have the willpower to put away 25-30% of every check into savings for taxes.
Healthcare is typically more expensive as a 1099 and you can almost forget about workman’s comp if you get injured. Though most companies do offer LTD/STD plans you can pay into.
If all that sounds like something you can deal with then I would say go for it. I no longer work for them but Hirschbach has a great Lease Op program that I would recommend to anyone getting into leasing for the first time. But as always, do your own research!
Most definitely will continue to do my research, i have young children and i make good money but i really want to make sure we are comfortable before they hit teenage years. Trying to make a way for my family. I understand the time commitment for sure. I will continue to research it thank you for the insight
I skipped over both questions you asked so here’s another comment. The length of the lease depends on the company. Some offer “walk away” leases with no set term, others want you contracted for a specific length of time. Be aware that there may be penalties in either case for ending your lease. Also most lease programs involve making the truck payments but there are ways companies will keep you from being able to actually purchase the truck.
I’m not sure how local works with lease ops since the loads are usually not paid by the mile but hourly or a flat rate per trip/mileage combo
I’m regional, I go to El Paso, Albuquerque, Vegas, Salt Lake, Tucson and Flagstaff so I’m back in Phoenix at least every other day, 34 on the weekend
Minus 30% set aside for federal and state taxes (will be less but I like to be sure) and around 5k for health/dental/vision insurance so far this year.
There’s definitely a lot of crappy programs and even with swift I don’t think you’d do great without being on a dedicated account, I wouldn’t do it OTR, but get a dedicated account and be willing to run and the money is there
I haven’t had anything needing done that isn’t still under warranty apart from oil changes and a tire plugged so far, last year was pretty similar but I know it’s coming.
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