Some of the numerous advantages of becoming an owner-operator are freedom, flexibility, and the possibility of increased earnings. Lease-Purchase trucking can offer you such benefits.
If you want to move from being a company driver to being a lease-purchase owner-operator, you’ll need to know what it takes to obtain your own vehicle. There are various options for doing so, one of which is to use a lease purchase option.
Let’s now look into the concept of lease purchase trucking a little more. This way, you’ll be able to figure out if it’s the right pathway for you to take.
What Is Lease Purchase Trucking?
Lease purchasing truck drivers are self-employed owner-operators who pay for their trucks using lease payments. As a lease purchase truck driver, you’ll have all of the same obligations and duties as a company driver, such as delivering freight on schedule and in a safe manner.
The lease buy program firm you opt for will tend to assign you work during the lease period. For your efforts, it’s typical for them to pay you at the higher owner-operator rate. You, in exchange, pay the truck’s lease payments, insurance, gasoline charges, and any necessary maintenance or repairs.
Why Get Involved in a Lease Purchase Program?
You may be a truck driver that aspires to operate your own business one day? However, the issue might be that your financial situation isn’t good enough to get started?
Buying a vehicle with cash comes with a hefty initial cost. Even if you choose to go for a used truck, the amount of money you need could be well over $30,000 or so.
This is one of the reasons why lease to own trucking jobs are so appealing. They not only reduce the need for a large down payment on equipment, but they also assist truck drivers in overcoming credit limitations.
Lease Purchasing Agreement Benefits
When you lease from a carrier, you can obtain assistance with some administrative chores. This can include things such as monitoring cargoes and keeping track of your hours of service.
As a leased owner-operator, you are still covered by your carrier IFTA license. So the firm you work with will handle your IFTA taxes and reports.
Another excellent benefit is you’ll have access to a brand-new vehicle at low rates. And lease purchase programs tend to let you choose your own truck or trucks if you want more than one. Although, if you prefer a lower price tag, you’ll have used truck options to choose from as well!
Also, when you agree to operate as an independent contractor, the carrier is responsible for obtaining the required license plates, licenses, and other criteria to get you on the road.
Various firms, of course, have different procedures and terms they offer. Before making a choice, you should study as much as you can about the lease-purchase option that you are interested in. Then compare it to others.
Lease-Purchase Trucking Explained
Now, you should have a much better idea of what lease purchase trucking is all about. It’s a way of propelling your trucking capabilities to the next level without needing loads of capital to get started.
Did you find this post helpful? If so, please check out our blog for similar advice and tips.