Truckers who dream of becoming owner-operators know how expensive it is to purchase a new rig outright. Fortunately, in the trucking industry, there are programs that make this process easier.
Lease purchase programs are designed to benefit both the drivers leasing the truck and the carriers who take on the financial risk. If you are an experienced truck driver interested in owning your own tractor-trailer, consider looking into a lease purchase program.
What Is a Lease Purchase Program in Trucking?
A lease purchase program is an arrangement that enables drivers to lease a truck through an established trucking company. Drivers pay a deposit on a new truck and agree to make weekly payments on it until the contract ends. At the end of the program, the driver will own the truck and be free to work independently as an owner-operator.
How Does Lease Purchase Trucking Work?
As part of a lease purchase program, drivers operate as drivers for the trucking company they are leasing the truck from. While making lease payments on their new tractor-trailer, they will take on routes from the carrier and deliver freight like traditional employees, but through the program, they will earn the higher owner-operator rate.
With this arrangement comes increased flexibility—more than traditional company drivers, although less than the freedom of owner-operators who are not contracted with a specific trucking company.
Once the driver has completed the lease payments and the terms of the lease purchase contract have ended, they own the truck, become owner-operators, and have the freedom to drive for any company they choose, negotiate their rates, and work independently.
What Are the Benefits of Lease Purchase Programs in the Trucking Industry?
For many truckers, participating in a lease purchase program is the first step on the path toward becoming an owner-operator. Additionally, if you join a lease purchase program at a reputable, trustworthy trucking company, you can expect to see several other benefits.
You Can Choose Your Own New Truck
Most of the time, lease purchase programs allow you to choose the type of new truck you want to lease. Since the type of truck you drive dictates what kind of freight you can haul, having the freedom to make this decision can impact your future career.
Additionally, as lease purchase contracts tend to offer leases on new equipment, you can avoid the potential risk that comes with driving a used rig.
You Get All the Necessary Permits
There are many permits, license plates, and other documents that all trucks are required to obtain. Trucking companies will typically take responsibility for securing the necessary permits and license plates for truckers in their lease purchase program. It’s the quickest, easiest way to get all the documentation you need.
You Don’t Have to Pay a Substantial Upfront Cost
Lease purchase programs generally don’t require substantial down payments from drivers. With smaller down payments compared to purchasing a new rig outright, leasing is more affordable for many drivers who want to own their own truck.
If you are looking for a way to purchase a new tractor-trailer but cannot afford to pay for an extremely expensive truck out-of-pocket, leasing is an accessible option.
You Get Support from the Trucking Company
Lease purchase programs also offer administrative benefits and other support from the trucking company.
Some carriers partially or fully cover the costs of preventative maintenance, driver training, performance reporting, load managing, hour tracking, and more. Other trucking companies may require you to pay a fee for the benefits you want. Either way, having the trucking company handle the hassle is an attractive benefit for many drivers.
You Make More Money Than Company Drivers
One of the biggest advantages of leasing a truck through a trucking company is that you will be able to make money while working toward owning your own tractor-trailer. Lease purchase truckers tend to be paid higher rates than company drivers.
How Do You Join a Lease Purchase Program?
If you are an experienced trucker interested in owning your own rig, a lease purchase program may be a good fit for your business goals. Follow these steps to find and apply for a lease purchase program at a trucking company.
1. Research Trucking Companies
Many trucking companies offer lease purchase programs. Start by creating a list of established trucking companies in your area and narrow down your options until you are left with a few trustworthy choices.
Ask fellow drivers for recommendations. Additionally, read testimonials on industry forums and online reviews on the company website to get a better idea of how the program operates.
Your goal should be to look for companies that have a solid reputation, offer fair lease terms, and support their drivers.
2. Evaluate the Terms of the Lease Purchase Agreement
Every carrier is different. You need to read the conditions of the lease purchase agreement before signing with a trucking company.
Carefully evaluate the lease purchase agreement before making a decision. Make sure you understand how the payment structure works, what types of support the carrier offers throughout the leasing period, and if there are any restrictions on freight or routes.
3. Review the Contract with a Lawyer or Financial Advisor
Consider consulting with a lawyer or financial advisor before signing a lease purchase agreement. These experts can answer your questions and make sure you fully understand the terms of the contract. They will also be able to point out any potential risks or red flags in the conditions of the agreement.
When you are satisfied with the offer, it’s time to join the lease purchase program and take your first step on the path to owning your own business.
Apply for the Lease Purchase Program at BT Trucking
At BT Trucking, we are proud to serve the transportation community. Our family-owned business has been a leader in providing transportation logistics solutions to our customers since 1988. Mile after mile, we provide stability to and build long-term relationships with customers, vendors, and drivers across the Midwest and Southwest regions.
If you are interested in owning your own truck, we can help. Our lease purchase program will start you down the road to success. We are dedicated to the success of our drivers, and we are determined to provide you with the tools and support you need to succeed.
Complete an application or contact us today to learn more.
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