Do You Dream About Owning Your Own Truck and Becoming Your Own Boss?
Look no further!
In this post, we’ll show you exactly how lease to own programs in the trucking industry work. We’ve prepared all the facts you need and we are ready to answer your questions.
So, let’s get started!
The Money Demand
Trucks don’t come cheap. Semi-truck prices vary significantly depending on model, age, and provenance.
You can expect a used semi-truck to cost anywhere between $40,000 – $180,000 or more. The average cost of a new truck is around $150,000 – $200,000.
The price also depends on the truck’s capabilities, fueling, and additional features.
But, don’t worry! With lease to own programs, truck owenrship is within your reach.
How Much Can You Make as a Lease to Own Truck Driver?
We’re sure this question has been on your mind from the start! These are the stats according to ZipRecruiter:
- In the United States, the average annual pay for a Lease Purchase Driver is $113,648
- Annual salaries go as high as $231,000 and as low as $27,500 – depending on the carrier
- The majority of Lease Purchase Driver salaries currently range from $80,500 to $144,500
So, how do you become a lease to own truck driver?
This is where a lease purchase trucking agreement comes to light.
How Does Lease Purchase Trucking Work?
What exactly is a lease to own program?
A trucking lease to own program is an agreement between a company that lets a driver buy their truck through a series of monthly payments over an agreed timeframe.
You will drive for the company you’re buying the truck from, and at the end of the contract, you’ll own the truck. If you want to become an owner operator but can’t afford to buy a vehicle right now, you can find a company with a lease purchase trucking program and start there.
You will act as an independent contractor and drive for the company you’re leasing the truck from. Sounds good, right?
How does a lease to own program work?
So now you know that your dream of owning your truck is, in fact, very achievable. Let’s see what’s next.
Lease to own programs put drivers on the fast track from being a driver to becoming an owner operator. When you sign a lease to own contract, you will buy a truck from that carrier.
Different carriers provide various lease to own programs with all kinds of benefits. These benefits may include no hidden costs, new trucks with the latest technology, warranties, flexible schedules, and steady work throughout the lease period.
What are the Benefits of Lease Purchasing?
No downpayment
Carriers with zero downpayment lease programs provide the most significant benefit. Drivers who do not have enough money for a downpayment will now have an opportunity to enter the market with this option!
Vehicle technology and safety
Some programs allow you to upgrade to a newer vehicle during the lease. This option ensures that you receive the latest technology and safety features throughout your lease program. You will also be able to afford brand-new equipment instead of buying a used truck.
Pay and Benefits
Lease to own programs come with guaranteed benefits in your contract, which your carrier will highlight. You will also enjoy the steady work and schedule. This ensures that you are bringing in the capital.
What Do You Need to Consider?
Decision making
Consider why you want to pursue this. Is it for career development? Flexibility? Accessibility? Entrepreneurship? You need to be sure that you’re making the right decision.
The type of truck
Consider the type of truck you are seeking to invest in. Research various fleet choices and single out which kind of truck is best suited for your long-term goals.
The required training
You will also need to ensure that you have the required training if you are looking to haul loads that need specific skills and certifications. For example, moving toxic or hazardous materials, which requires you to have a Class C CDL, as opposed to a Class A CDL, which is for standard trucks with tankers or trailers.
Lease duration
You can’t simply withdraw from a lease purchase agreement whenever you want, although some carriers offer a walk away lease. Usually, it is common for carriers to offer you lease terms between one and three years. Don’t be afraid to ask questions. You need to be sure that all arrangements are correct. Better safe than sorry!
You might end up paying more – be careful!
Although a lease to own program is easy to enter, due to the low start-up costs, you might end up paying even more with hidden charges or terms. So be sure to thoroughly work out your financial journey before signing!
Hidden fees
Before you sign off, ask the carrier if there are any fees they have not disclosed or that you should be aware of. Again, this may be something that comes at the end, but it’s essential to mention it before you start. So, keep this in mind!
The complexity of lease agreements
Legal and complex terms and conditions might confuse you, and you may end up agreeing to something you were unaware of. Make sure to read the entire lease contract. Alternatively, have a lawyer examine the contract before signing.
Understanding the contract terms
This is very important! Ensure you understand what you are signing and whether you can meet the obligations. Thoroughly go through these terms and inquire about anything you do not understand!
What are the Mandatory Things You Need to Know?
What costs will be covered by the carrier?
As a lease purchase owner operator, you are the boss of your truck, time, and money. This means you will be responsible for most of the costs, and you need to be sure of the exact charges that will be covered by the company you’re working for. So again – don’t be afraid to ask questions!
Does your carrier offer a walk-away lease?
Walk-away leases come in many options, from no maintenance to complete maintenance with guaranteed replacement. Talk to your carrier about all available options, costs, and possible outcomes.
Double-check: zero payment, balloon fees, and hidden fees
Be sure to discuss this with your carrier before signing a contract. Most companies will implement a zero down payment offer, but it’s better to be sure. This leads us to:
Payment options
Speak to a financial advisor on the best payment option you can pursue. Then, negotiate with the carrier and explore payment plans that will suit you and the company you’re working for.
Maintenance and services
Check whether the carrier has any maintenance and service packages available. Alternatively, have the carrier suggest a trustworthy company for this.
What Do You Need to Become a Lease to Own Truck Driver?
Now you know all the facts, and you are aware of the things you need to pay attention to. You understand how this job works and decide that this is your next step.
So, what do you need to become a lease to own truck driver?
These are the usual requirements:
- Road experience
- Clean driving record
- Clean background
- Stable health condition
- To be a steady, dependable, and safe driver.
Of course, carriers will require you to have a Commercial Driver’s Licence (CDL). You will need to check with the carrier about their various programs. Many carriers even provide driver training as part of the lease purchase program.
What Happens During the Lease Period?
Once you agree with the carrier, you will sign a contract that sets out the terms that must be met. This will vary depending on your chosen carrier and the conditions you agree on. During the lease period, the carrier will provide jobs, and your responsibilities will include managing these assigned jobs.
Your responsibilities will include delivering freight safely and on time, insurance, fuel costs, and repairs or maintenance needed.
At the end of the lease term, you can fulfill the purchase or even return the truck. In addition, depending on the terms set out, your contract may allow you to opt-out of the program at any time without further or specific financial obligations. This is known as a walk-away lease, as we mentioned before. It ensures that you have full autonomy to decide what’s best for you at any point.
Any Final Questions?
Why do companies lease trucks?
Companies understand the high demand for leasing trucks.
Therefore, they leverage this demand by providing various leasing packages. This ensures they remain relevant in a highly competitive market while generating profits.
Is leasing a truck profitable?
The most significant financial advantage of leasing a truck is that it can help you get into the industry without huge costs and achieve ownership of your truck. Leasing your truck can help you increase your income and become the owner operator.
Will I have more freedom if I enter this program?
Yes, you will be free to make your own rules and determine your hours and income.
