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MALONE CRST
Owner Operator Recruiting Team


Monday - Friday
1-800-837-1320
8:30AM-5:30PM
Eastern Time

 


Lease vs Purchase - Class 8 semi tractor

Lease term vs Loan term:  Semi Truck Lease Purchases are typically shorter duration (30 month- 42 months usual maximum) than standard Class-8 tractor financing (which can run up to 60 months) therefore the payments on a semi truck lease will tend to be somewhat higher. 

Think for a minute, what is the value (or equity) of a tractor you purchased used, ran hard for 48+ months and then traded?  In some cases a lease might be better.


Enjoy the generous tax benefits of being an independent contractor with   (little or) no money down lease tractor purchase and no necessary credit history established  (in most cases).

If you're leasing a truck and experiencing trouble with it, your Carrier that you are leasing from will work with you toward a solution. In contrast, if you're buying the truck, it's all your responsibility.

If you're leasing a truck rather than buying it and you have an accident, your Carrier can usually work with you to finance missed payments while supplying another truck to lease until yours is repaired.

The base cost of leasing has not changed during the last three years. The cost for buying a new truck goes up about 4% every year.

If you're leasing a truck and have warranty problems, simply let your Carrier know and they'll handle the problems for you. In contrast, if you're buying a truck and have warranty problems, you are on your own.

If you're leasing a truck and you get hurt and are unable to work, you can contact your Carrier  immediately and arrange for them to terminate your lease and take possession of the truck. This protects you from making any more payments without negatively affecting your credit. If you're buying a truck and become injured, your payments will still continue to be due each month even if you are unable to work.

Some negative considerations:  Some Leases require excess-mileage charges, maintenance, performance, and tire escrow accounts and other possible expenses that can be quite expensive as weekly deductions.  All the unused portions of all your escrows should come back to you at the end of your lease term if you satisfactorily complete the lease without incidents, accidents, and major claims.  This can add up to around $10,000 in 36 months as what is commonly called a "lease completion bonus."  So, if you perform well during the lease, this can take the sting out of the deductions which come back to you and end up being kind of a "forced savings account" that you might not otherwise have had. (Not all Carriers offer this lease-completion bonus)


The Carriers have to deduct these monies (for maintenance, tire replacement, etc) from the drivers weekly Settlements because, guess why, most drivers are not going to set these accounts up and put the money back for their own operating expenses. 

Most leases that we have seen require that you run about 3,000+ miles per week to really make them work.  Too much time off between trips can put you in the hole because the truck has a weekly, actually daily, fixed-cost that requires consistent revenue to balance these fixed expenses.  Once you calculate these costs you can plan your trips and home time
 to your own financial advantage and
not go into the "red."

The bottom-line is
 you don't have to buy a truck to be your own boss. There are many good truck leasing programs out there to help you establish or rebuild your credit history and to allow you to operate a tractor and become an owner operator that you might not  otherwise be able to afford or qualify for right now. 

 

Buck Williams
Owner Operator Recruiter
Phone 1-615-739-5622 Direct
buck@malonecrst.com

 
MINIMUM 25 years of age - Need 6 months + verifiable OTR Class A CDL experience
Will consider less than 25 years old with 2 years verifiable OTR and 6 months Flatbed experience
OTR is 5 states or more with a tractor and a 45 ft or longer trailer
NO DRUG CONVICTIONS EVER: POSSESSION OR sale of any kind of illegal drug or substance past 15 years
No DUI in the past 5 yrs - none in commercial vehicle ever
No more than 1 DUI in the past 15 yrs - 2 max in lifetime
No serious moving violations in the past 36 months
No Felonies in the past 10 years - 1 lifetime
No following too close or improper lane change violations
No rollovers (ever)
Maximum PSP Score of 90
http://flatbedowneroperator.com/What-is-my-PSP.html   (you can get a copy of your PSP)
Tractor needs to pass DOT Inspection and be in good condition mechanically
Need current 2290 for your tractor

 

NOTE: 75% of gross plus 100% fuel surcharge- averages 60 cpm+/- and 100% tarp pay--Owner Ops and Lease Purchase


 

Call Buck at 1-800-837-1320
Monday through Friday 8:30 AM to 5:30 PM Eastern Standard Time
  


NOTE:
Liability and Cargo insurance is provided at no cost, base plate program and sign on bonus. all insurances

This is all flatbed freight --typically the highest paying freight; and you will have the opportunity to drive as many miles as you can legally log.

 



 

Visit flatbedowneroperator.com for more details

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