Lease Purchase Trucking: Your Path to Independence
Are you a company driver who dreams of being your own boss and reaping the rewards of being an owner operator?
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Well, lease purchase trucking might just be the ticket you've been waiting for!
It's a way to step up your game, earn more money, and enjoy the flexibility of running your own trucking company. But hold your horses before you jump on board - there are a few things you need to consider.
Let's take a closer look at lease purchase trucking and what it entails.
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What Exactly is Lease Purchase Trucking?
Lease purchase trucking is a game-changer for company drivers who aspire to be owner operators. In this arrangement, you make payments on a truck that you lease from a trucking company. The ultimate goal is to pay off the truck, establish yourself as a reliable carrier, and when the lease term expires, spread your wings and grow your own trucking business.
Now, let's talk numbers. The weekly lease payments for your truck can vary significantly, ranging from $800 to over $2,500. The exact amount depends on several factors, such as whether you opt for a used or new truck and the specific trucking company you choose to work with.
Points to Ponder Before Taking the Leap
Before you embark on your lease purchase trucking adventure, there are a few crucial factors to keep in mind. We're talking about things that can make or break your journey to becoming a successful owner operator. So, let's dive right into it.
1. Repair Costs: Buckle Up for the Expenses
Just like any piece of machinery, trucks require regular repairs and maintenance. As an owner operator, you'll be responsible for covering these costs. On average, an over-the-road truck driver who logs around 100,000 miles can expect to spend up to $17,000 per year on truck repairs alone. That's no small change! Therefore, it's essential to exercise caution when considering a lease purchase for a used truck.
If you're eyeing a used truck, make sure to thoroughly review its repair records. It's also worth double-checking whether the truck has been previously leased by another driver. These might sound like simple steps, but they can save you from a potentially disastrous mistake down the road.
2. Revenue: It's in the Hands of the Company
When you enter into a lease purchase agreement, the company you sign with will have the final say over your revenue. They will determine the loads you'll be hauling, which directly affects your earnings. Therefore, it's crucial to ensure that the company provides ample freight opportunities.
To gauge whether a company has enough loads to keep you busy, consider checking load boards. Those platforms can give you insights into the regions and routes the company wants you to cover and help you assess whether there are sufficient loads available.
3. Choosing the Right Freight Equipment
The type of freight equipment you'll be hauling plays a significant role in your success as an owner operator. While most drivers opt for dry van loads, it's essential to consider the specific truck equipment you'll be using and whether the company consistently offers loads for that equipment.
For instance, flatbed loads tend to be the highest paying in the trucking industry. These loads often involve oversized heavy machinery and other large goods used in construction projects. So, if you're considering lease purchase trucking, think about the type of freight equipment that aligns with your goals and the company's ability to provide relevant loads regularly.
From Lease Trucking to Your Own Trucking Company
By transitioning from lease trucking to running your own business, you'll have even greater control over your schedule, routes, and earnings.
It's an exciting opportunity to shape your destiny and unleash your entrepreneurial spirit. Of course, this journey comes with its own set of challenges, but armed with experience from lease purchase trucking, you'll be better equipped to tackle them head-on.
So, buckle up and get ready for the ride of your life!
Lease purchase trucking offers a promising pathway for company drivers to become owner operators and realize their dreams of independence and financial success. By carefully considering the costs, repair responsibilities, revenue prospects, and freight equipment options, you can set yourself up for a smoother transition and increase your chances of long-term success.
Lease purchase trucking might just be the adventure that propels you to new heights as a trucking industry entrepreneur. Good luck, and may the road ahead be filled with profitable loads and endless opportunities!
By Stuart Nelson
