Lease A Truck-Get Screwed

[MarkWilde]

I have a friend who just joined the C.R.England lease group. I can't believe they talked her into 'BEING YOUR OWN BOSS'. Come on people, when are you goin' to learn? all you are doing is releasing them of all responsibilty of paying health insurance, 401k, fuel, and everything else. But are you your own boss? Can you set your own loads? Is this really your trk+ If so, why can you not take loads from brokers when you want.

All you are doin' is paying off their used crummy old truck. Ask them how many other new drivers have leased that truck that they choose for you to lease, not one you get to choose you would like to buy.

The, once you get close to ending your payments and owning it, why I don't understand? Freight suddenly drops, and you don't get enough to support your truck!

C'mon guys, quit supporting an owners wealthy lifestyle while they prey on the ignorant.

 

[Mike]

If you are leasing a truck, you are going into business for yourself, so things like health insurance, retirement, an fuel are the responsibility of the the person responsible for the truck.

Leasing isn't "buying". Nothing tricky about this. Just like if you go to a car dealership and leave with a new car that is on a "lease" plan. You are responsible for everything, just as if you owned the car, but you are just making lease payments. At the end of the lease, you have a purchase option, or you let them keep it.

This isn't just CR England related, this is any lease program.

 

[rebel]

I thought if you lease a car they are responsible for major maintenance and repairs, not you.
That's the whole point of leasing and not buying.
Pac lease is like this. You also get to spec out your own truck not take what they give you.

 

[SilverSurfer]

That depends on the lease agreement, Rebel. Which is why it's extremely important to read the WHOLE contract and negotiate stipulations you don't agree with. Something these new greenhorn's are not taught in these so-called truck schools, and the corporations are taking advantage of 'em.

The only true benefit between leasing and purchasing is the lease payment is a 100% deductable tax expense and purchasing only allows a depreciable percentage tax deduction with a first year max of 17% of asset value (this percentage may have changed.)

Both my rigs I set up as lease purchases. Only I negotiated with a third party truck dealer and not the trucking companies I contracted with. Total price divided by 36 months with a $1.00 balloon payment at the end of the lease purchase. It did make for one hell of a truck payment ($2,219.00/mo.,) but then I knew what I was doing and this was back during a time when a trucker could still make a decent buck out there.

Of course all control of equipment costs did ride on my end...this is how a business equipment purchase/lease should be. These trucking companies are taking advantage of driver's not properly taught about O/O'ing and include many stipulations within the contract about escrows and maintenance accounts, and their controlling of them...as well as all the hidden administrative expenses. Reading, and understanding, the entire contract is so critical and these greenhorns just don't know how to properly negotiate contracts. And this is not necessarily by no fault of their own, but O/O'ing is no different than any other business in regards to your being an entrepenuer. And if you don't take the time to understand the seriousness of what you're getting into...you truely do deserve what ya get. Don't mean to sound like an a$$hole, but then you're playing with the big boys and should act accordingly. This was something my uncle was not very nice about teaching, and rightfully so.

-ss-

 

[rebel]

All true.
I wasn't sure if tax deduction on leases still applied.

 

[SilverSurfer]

A lease purchase should be set up with the title staying in the leassor's name until the completion of the agreement. As long as your name is not on the title...you can write-off the entire lease payment. This is something IRS will have an extremely hard time changing. Leasing is considered to be the same as renting, only difference is the contract stipulations.

-ss-

 

[Mike]

The only true benefit between leasing and purchasing is the lease payment is a 100% deductable tax expense and purchasing only allows a depreciable percentage tax deduction with a first year max of 17% of asset value (this percentage may have changed.)

A great point that many who are in lease purchase programs with these various trucking companies don't realize come tax time either because they are doing their own taxes and don't know things like this, or they are using an accountant that has no clue about the trucking industry.

 

[SilverSurfer]

Excellent point, Bull.

I'm not a tax specialist, but I do know the nuances of being an O/O. Little things like this do make a huge difference in the bottom line.

-ss-

 

[iceain]

the upside of usa is the truck is leased by a finance company the payments go directly to them b4 my bf gets paid and he has a tax consultant that is familuair with the trucking industry so we have all bases covred and if in the 36 months is up he can take the truck with him to the company of his choosing he just has to let the finance company knw what his plans r in advnce

 

[Dayripper]

all i can say on this is READ THE CONTRACT!
ask for a copy it before agreeing to any thing.
if they wont let you have a copy b4 hand to read it over or take it to your laywer dont do it . and ask for ALL records for that truck allso. if they wont give them up, stay away!

 

[iceain]

thats a good point day as we have at least 15 pages on this truck of the so called up keep on this truck the same day we got it since it was on the road in 2005 and he has copies of his whole contract

 

[patriciajnsn]

I have never leased and never will.I listen to drivers.Who would know better if a company is crooked more then a driver would.It's beyond me why almost every company is bad to lease from.Why can't they give the drivers a good deal.Why do they have to lie to the drivers.Why do companies treat the drivers like we are all stupid? Any of you recruiters care to answer my questions?

 

[Dayripper]

I have never leased and never will.I listen to drivers.Who would know better if a company is crooked more then a driver would.It's beyond me why almost every company is bad to lease from.Why can't they give the drivers a good deal.Why do they have to lie to the drivers.Why do companies treat the drivers like we are all stupid? Any of you recruiters care to answer my questions?

lol they not gonna awnser that truthfully....

 

[Tn. Truckers Wife]

lol they not gonna awnser that truthfully....

That would be like asking a dispatcher to be honest...lol... It ain't gonna happen...

 

[patriciajnsn]

ya I know.It's just too bad that the new drivers are facing the sales pitch of the recruiters without talking to a veteran driver first.There is a few companies i'll never go to because the recruiters are way too aggressive

 

[patriciajnsn]

ya I know truckers wife but I can dream can't I lol

 

[Tn. Truckers Wife]

ya I know truckers wife but I can dream can't I lol

Ofcourse you can dream..lol....

 

[lonwlf258]

Funny , I tryed to lease purchase a truck thru J>B> HUNT I made it all the way thru until they got my dac trepot from dac and USA truck put on it that I was fired for violating company policy . I quit , they did not fire me But what can you do . I have been driving for 14 years and have 1,500,000 accident free safe miles . took 10 years off and went to school to get my CDL's back and now just because of that DAC no one will hire me . What a waste , JB's lease looked good and no ballon at the end it is covered by credit for on time payments .. so if they are late they only have themselves to blame ....

 

[patriciajnsn]

Funny , I tryed to lease purchase a truck thru J>B> HUNT I made it all the way thru until they got my dac trepot from dac and USA truck put on it that I was fired for violating company policy . I quit , they did not fire me But what can you do . I have been driving for 14 years and have 1,500,000 accident free safe miles . took 10 years off and went to school to get my CDL's back and now just because of that DAC no one will hire me . What a waste , JB's lease looked good and no ballon at the end it is covered by credit for on time payments .. so if they are late they only have themselves to blame ....

Sad that companies have to lie and fabricate on drivers dac reports and mvrs.I've never had companies put things on my record to prevent companies from hiring me but 2 officers did so noone will hire me either.As far as leasing goes,i've heard too many bad things about JBHunt to ever even think about leasing from them.

 

[greybeard]

Hello all!
Former England driver here..
I agree most resoundingly with all those who's advice was "read the contract".
I had the opportunity to do just that at "orientation". A 5 day orientation that would only be 2 days, if they did not push the lease program so hard. England leases it's whole fleet from freightliner, so you do not lease from England, you sub-lease. In other words, you make their truck payment for them. They make all the deductions from your settlement for permits, insurance, maintenance escow, etc. AND, (for a small fee) will do your quarterly taxes.
In the end, you moved all Englands freight for next to nothing out of their pockets, and you took all the risk.
Did not seem equitable to me, so I was a company driver, until they decided to abolish company drivers recently.
Anyway, thats my 2 cents.
Cheers to all!
Greybeard