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How to Become an O/O: To lease or not to lease
February 1, 2010
| by: Max Kvidera
To lease or not to lease
It may seem like the easiest way to many drivers to switch to owner-operator status, but pitfalls exist.
Johnny Hall wanted to own a truck. After two failed deals with other drivers, in 2002 he joined National Carriers and started a lease-purchase program to purchase a 2001 Freightliner Classic. He received the truck’s title in July 2007. “I didn’t have [good] credit or the money, so that’s why I went lease-purchase,” he says. “It was hard, but it can be done.”
In the past several years, the lease-purchase option for truck ownership through carriers has surged.
“Ours was borne out of the fact it was something in the industry that had gained momentum, and it had become a competitive piece to the puzzle in recruiting that you had to offer a lease-purchase program. It was also a retention tool,” says Shannon Crowley, vice president for risk management at John Christner Transportation.
Lease-purchase programs often appeal to drivers who don’t have cash for a down payment or a good enough credit history to qualify for buying a truck through a dealer. Leases range from one to five years, usually with zero or minimal down payments. Trucks typically are late models, though a few programs occasionally offer a limited supply of new models.
Payments and other program expenses come off the top of weekly settlements. Operators usually are responsible for their own maintenance and other expenses, though some programs may cover tolls, permits and plates. During the lease term, escrow money accrues in a maintenance account and is released after the lease expires.
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i would like to be an owner operater
halo ;Mr cutis D. preston.
iwould like to be owner operator. cant you give me all the imformation. how to be come an owner operator . my experient as driver only 6mount to 1. years . I’M qualivat for it or not. please email me ; in farghm@verazon.net
thank yuo .
how do I Become an owner operater
thank u
National Carriers
has a truck lease program that is unattainable do to the fact that it takes about 2200 miles before you can make a profit and they will only run you about 2200 miles so that you just break even every week or end up in the negative. It is a total scam. They also charge for equipment that they require you have without you having a choice whether you want it or not such as qualcom etc. There settlement sheets are so difficult to read so that you can not figure out where they are ripping you off. I have had several CPA’s try to ready these settlements
and it is impossible. Also they keep all the money in your escrow and maintenance accounts if you decide to leave. They lease trucks that have not been maintained or up to DOT standards and ending up sticking you with the repairs needed. Total scam all the way around. This use to be a great Company and then a man by the name of Ed Kentner took over and now its a total scam. He talks down to you and will belittle you and treats drivers really bad and everyone at National knows this is just says that is the way he is. Stay far away from this company.
http://www.ripoffreport.com/trucking-companies/national-carriers-li/national-carriers-liberal-ks-caf26.htm
If you really what to do a lease Purchase go to USXpress with them you can make the miles to pay you’re lease and still have a very good paycheck to pay you’re bills and feed you’re family.
@NotHappy,
My father tried the lease-purchase through national carriers and they had treated him the exact same way…they lured him in with the fancy trucks and convinced him that the lease purchase would be extremely successful. He figured at first that he wasn’t making money because he had one of their junk peterbilt 379′s. he found out everything you said the hard way and when he left the company they kept his 7000 dollars in his escrow account…these people are theives who put their drivers through hell. DO NOT JOIN THIS COMPANY!
I was a owner/operator for four years. The money was great but so was the headache. I found a great deal on a truck and leased to own. Once I paid it off I was doing a lot better.
did the lease with prime 3 time trying to make it work but everytime after we hit the 6-7 month miles drop went 5-6 months with out a pay ck was going to try the last time to stick it out but wife would let me she said tired of working for free but we did get cash av to pay bills i wanted to see what it was like after a year mabe it got better but never found out is there anyone who has made it past a year with them ? that can let me know if it got better love the company great team of pepole mabe didnt get the right disp so many ? never answered thxs
I did not drive for Prime but I have heard that a lot of companies will screw drivers over. When o/o’s get close to paying off the truck, I’ve heard that some companies will shorten their miles and make it difficult to make payments. I don’t know for sure, because I have not experienced that. And you know how rumors are in this industry…
***BEWARE*** THIS COMPANY GETS THIER TRUCK PAYMENTS PAID, FUEL PAID AND FRIEGHT HAULED FOR FREE, THANKS TO THE DRIVERS OUT THERE WITH DREAMS OF BECOMING AN OWNER OPERATOR.
My husband signed a lease with National Carriers in Jan 2009. NCI Never reimbursed him for the train ride there. He went 4 or more months with no paycheck (except the 16 cents he recieved one paycheck). He spent 4 to 5 weeks out at a time..NCI promised to get him home every 2-3 weeks. THAT NEVER HAPPENED…
NCI showed child support taken our however the Child Support agency never received the payments (were dealing with that now). They double charged him for a bed warmer blanket and still has not reimbursed him. When he left in Feb 2010, they did not even give him a way home as they said they would. They kept over $5000.00 he had in his escrow account for truck repairs. He made alot of repairs on that 2004 Peterbuilt and when he left, NCI raked him for more repairs.
My husband busted his butt for this company and got nothing. NCI got $35,000 paid on a truck for them.
What’s Ed do about it? Ha…he dont care, he gets a paycheck. He can feed his family, most NCI drivers cannot..
I wonder how many families NCI has destroyed with thier famous LEASE PROGRAM…
NCI gives drivers just enough miles for NCI to make money. LEARN FROM OUR MISTAKE “STAY AWAY FROM NATIONAL CARRIERS”.
Not everyone is cut out to be owner operators I have had some come here and try to run an O/O couldn’t handle the money, always taking advances,not able to handle the regulations, and one I just fired never showed up for his drug test.
I am going to monday contact DAC and let them know to put on his record no show for drug test, I waited for him at the clinic for an hour.
Not everyone can make it, you have to figure out how much you need to get started, we had 7500 set aside for fuel and household expenses lasted 45 days which is when the checks started to come.
Not everyone will finance you if you want a trailer, we were in business for 3 months when I found 2 dedicated runs. we bought one trailer for 2,500 cash and financed the other trailer they wanted us in business for 2 years before they financed us. We proved we had two dedicated coming to 1900 a week off them, I think I can handle 600 a month payment.
So I put some money down and finance the trailer.
Now were buying a building after 5 years in business where we can fix our trucks and cars and others. The thing is don’t go buy a new truck just to avoid fixing it, the payment is between 1000-2000 a month.
buy used if your being a O/O make sure you know how to fix the truck so you don’t have to pay out of the pocket around 2-300 just for oil change and filter change we do ours for a lot less. Carry spare tires in the Rack emergence service just going out is 200 for the call after hours and then tire, labor can come to 800.
We have had someone impound our truck and charge us over 5,000 when they had no hold on us. My driver had an accident with the trailer in Chicago, driver drove truck back to their yard, when he went to deliver the load on their trailer they took our truck and impounded it.
Had to go to court to get some of the money back, they held our truck for someone else’s trailer.
Have an emergency fund of 2-3000 set aside, our truck broke down in the Carolinas and needed a radiator, 1600 for it on the road, radiator actual cost 600, labor 1000.
email me at http://www.nlcountryboy3@gmail.com I have a bunch of questions about o/o
New to the game. In the middle of carrier transition from military life to civilian. After reading all the responses I have a couple of questions. First of all no one really said when is the best time to become an owner operator, thanks for the heads up about NCI. Second looking at coming into this Bus. with possiblly Werner or Swift, also looking at CSTR. What is anyones opinion about these companys?
To Rookie;
Freight is generally best from spring to fall. I recomend starting around april. I just applied for my own authority a month ago and unfortunately the freight rates have come down a bit. It takes a bunch of money if you run interstate(State to State). The insurance for my 2 trucks and 2 trailers is 19K per year. The registration is about 2500 per truck. If you are considering becoming an O/O, make sure you buy truck that gets 6 mpg or better. I spend 3000 per week in fuel. One the newer truck I recomend the cummins 485hp/1850 torque. The 1850 torque is vital to pulling hills and maintaining a descent mpg. Also go with a 13 speed with 3.55 or 3.58 rears. Perfect combo. Good luck!!
Kevin summed it up well with the money part. Don’t forget the yearly road taxes of $550.00 per truck. I am an owner operator leased to Landstar, and am NOT a fan of buying a truck thru a company. I don’t like the hold they have on you when your earning your money. It’s easy as a first time buyer to go to Select Trucks with a $1,000 down. Just be prepared with your coveralls or a friend with coveralls to check the truck over from front to back. Or even better, pay a diesel mechanic for a few hours of his time and take him with you to check it out. Buying a truck this way, allows you to work a whole month to make the money instead of weekly payments. Sometimes the beginning of the month is slow, then it picks up in the middle of the month. If your doing weekly payments, it can bite when you see your check. And when you lease on to a company, my moto is, if I can’t make my truck payment with the first weeks check, I’m in the wrong place.
I NEVER HAVE HEARD A DRIVER FROM WERNER SWIFT ROEL PRIME SAY ANYTHING GOOD ABOUT THEM HAVE TALKED TO HUNDREDS.HAVE A LAWYER READ ANY LEASE PURCHASE CONTRACT !!!!!!!!
I’m it company local driver I’try to looking imformation to how i can be it o/o
From what i’ve gathere all lease purchase programs are a joke!!!! After your lease is done you have to turn around a buy it AGAIN!!!!!
There are some good info out there from expearenced drivers. after reading what they have to say there should not be any problems about the do’s and dont’s on lease purchase vs.down payment purchases.Be ready and serious if you want to be a O/O or own authority. There are some good companys out there to work for on o/o. find those companys first and then save your money while you are a company driver. you will know then that this is the company that will treat you right, pay you well, respect you as a driver. Now take that money you have saved go purchase a truck of your choice lease yourself to them. let your accountant review your contract with them. Now enjoy life and your own truck, have fun! Stay Alert! See you on the road!
I am a company driver, that started looking into the lease purchase programs at several comapnies a couple years ago…. after many conversations, and much research, I AM STILL A COMPANY DRIVER… the reasons are many, several which are already stated in previous comments. The truck payments were out of line… and there turned out to be ALOT of “hidden costs”. and in the end there were still costs…. no choice in the truck you get…. HOW DOES THAT WORK??? I did the math…. IT DID NOT COMPUTE!!!! IF YOU WANT TO GO THE LEASE PURCHASE ROUTE…. BE VERY CAREFUL!
The best way to go about it is to buy direct from a dealer, there are a few repo sales compaines that will accept poor credit to move the trucks that banks own. I am currently leasing on o/o. For trailer transport. Fuel cards plate program ins etc. We are looking for o/o to work with us not for us. poweronlytrucking
WHERE is the beef/
I myself would like to do a lease one day I ran coast to coast for years.Now runnin N.E. sure miss the big road.
Most all of the lease purchases I have done have worked well for me. I enjoyed Steelman from Springfield MO. That is if you like pulling a flatbed or same type of frieght. I woulod of done well had I hadn’t got hurt and my girlfriend didn’t get sick. Seamed every week everything just got better and better. I would give anything for the company to ever listen to me again. Steelman has a good lease purchase and good equipment. When it comes to working for a company. I really don’t care if it is driving for them as a company driver or if you lease purchase to become in business for yourself. It is all about you and attitude. I got fired from my last job for a payroll mistake that never got resolved to my liking and when I complained I got fired. I am now to old with to many jobs under my belt to get another job. My goal is to help others truck for themselfs and I am here to help. Call me anytime. My name is Rick 417-540-4538
A lease purchase is just another way to get drivers and have them pay for an older truck that is already payed for,in other words it’s basicly a scam.The only way to become an O/O is save your pennies.
mrtmrsh@gmail.com
Hey Rick,to many jobs under your belt,that’s called Blacklisting.I know I have basicly the same problem,but I’m enjoying sitting at my computer and letting these folks know what these companies are really about.
Hope everything goes ok for ya,God Bless.
mrtmrsh@gmail.com
The prefer route is to start as a company driver,save for down payment while learning to be an O/O.I went through Swift on a lease purchase in 1999.I still got the same truck with a 2007 step deck trailer i bought it cash and lease to a Dallas Mavis.
I concur with what others have said.You want to go through that lease carefully.Some companies will deduct a certain amount a month if you drive say over 10,000 miles a month to cover the resale value in case you drive say over 600,000 after the lease.
Also if it is a big company like Swift,Werner
U.S Express,take advantage of their services.
Fuel in their terminals are sometimes 30 to 40 cents cheaper than nearby Pilot or TA.Do repairwork at their terminal.Labor rates are generally 1/2 that of dealers, although it may take awhile to figure which terminal does a good job.
At the end of the day,it is a business.Like they say a company driver is a truck driver and
O/O is a besiness man/woman.You are not guarantee to make money but only an opportunity
to make money.It is taking risk and risk comes reward and sometimes failure.
I got hired with JB Hunt. I went to orrientation got qualified. Then this is when the problem started. I originally hired on for a lease purchase. Then changed to intermobile. I am suppose to work out of the KC terminal. Yet once I finished orrientation the pile of a mess that I was left with really did not make it worth the effort to go. And now I am not sure what to do.