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Truck Owner Operator Lease Purchase Program Survey Results

Apr
3,
2010
9

Allen SmithBy: Allen Smith

Truck Lease -ACTUAL miles per week

Truck Lease -ACTUAL miles per week

On November 9th, 2009 we began our Owner Operator Lease Purchase Program survey, in order to collect data on this issue which has caused many drivers to fail within the trucking industry.  I have always proposed that this program is one that is designed for the truck driver to fail, having noted that past studies have shown that this lease purchase option resulted in an 87% failure rate for drivers.

I will continue to let this survey run further, to collect as much data as possible.  Consisting of ten questions, as of today, the following are the results of our truck owner operator lease purchase program survey:

  • Was the Owner Operator Lease Purchase Program you were under require any money down or credit check?

YES – 30%
NO  – 70%

  • Were you given the opportunity to choose the truck of your choice, or did the company choose for you?

Driver Choice  – 52.5%
Company Choice  – 47.5%

  • Which of the choices below best describes the amount of gross income the company said you would be able to make as an owner operator under their lease purchase plan?

$35,000 to $45,000 per year  –  7.7%
$46,000 to $65,000 per year  –  15.4%
$66,000 to $100,000 per year  –  38.5%
Over $100,000 per year  –  38.55%

  • What was your ACTUAL gross income?

Overall Average –  $36,545.77

  • How many miles did the company say you would average per week as a lease purchase owner operator?

Overall Spread – 1800 to 5000

  • What were your ACTUAL miles per week average?

Overall Average – 2000 to 2739

  • How would you rate the company’s overall support system, in assuring your success as an owner operator?

Excellent  –  2.6%
Very Good  – 15.4%
Good  –  7.7%
Poor  – 59%
No Support at all  – 17.95%

  • Overall, how mechanically sound was the truck you were placed in?

Excellent    –  7.5%
Very Good  –  22.5%
Good  –  27.5%
Poor  –  27.5%
Piece of junk  –  17.55%

  • Once started, how soon thereafter did you experience your first serious mechanical/safety issue with the tractor?

Overall Average  –  Within 4 months

  • Based on your experience, what is your overall view on these “No Money Down – No Credit Check” Owner Operator Lease Purchase Programs?

Legitimate  –   11%
Scam  –  57%
Don’t Know  –  32%

Our survey for the trucking industry’s owner operator lease purchase program will remain open.  If you have been involved with one of these lease purchase deals, please take the survey.   We will continue to update on its progress.

Furthermore, we are working “behind the scenes” to move forward with our Stop False DAC Reporting petition.   Signatures received thus far: 1,243.  An update to this important issue will be noted at the appropriate time.

Thanks,

Allen Smith

Truth About Trucking, LLC

© 2010 – 2014, Allen Smith. All rights reserved.

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By: Allen Smith

Allen Smith is a 37 year veteran who started at an early age in a household goods family moving business. He began driving straight trucks in 1977 and moved to the big rigs in 1982. His experience within the industry includes; owner operator, company driver, operations manager, and owner of a long distance HHG moving business, taking many of the long haul moves himself when needed. Allen Smith, a truck driver advocate who is driven by the desire to help others succeed within an industry where injustice, unrewarded sacrifice, and lack of respect and recognition exists. Allen and his wife Donna are hosts of Truth About Trucking ”Live” on Blog Talk Radio. Other websites include AskTheTrucker, TruckingSocialMedia, NorthAmericanTruckingALerts, TruthAboutTrucking, and many Social Media websites. In 2011 Allen and Donna hosted the first Truck Driver Social Media Convention, designed to create unity and solutions for the trucking industry. This is now being extended through the North American Trucking Alerts network as those within the industry join forces for the betterment of the industry. Allen strongly supports other industry advocates who are also stepping up to the plate to help those who share honesty, guidance and direction. He believes that all those involved in trucking need to be accountable for their part within the industry, including drivers, carriers, brokers, shippers, receivers, etc… The list of supporters and likeminded people grow daily, networking together and sharing thoughts and ideas for the betterment of trucking. He has coined the popular phrase "Raising the standards of the trucking industry"

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9 Responses to Truck Owner Operator Lease Purchase Program Survey Results. - Post a Comment

  1. […] This post was mentioned on Twitter by Allen Smith. Allen Smith said: Truck Owner Operator Lease Purchase Program Survey Results: By: Allen Smith On November 9th, 2009 we began o… http://tinyurl.com/ybpyzgv […]

  2. Randy Simmons

    The whole concept of lease purchase, esp. zero down is designed to fail for the truckdriver.At every turn you will be at a disadvantage when it comes to your “business”.lol..You are at the mercy of the : DOT, Your Company, Miles given, Delays of loads, Dispatchers. Your whole “business” is based on pure faith and good intentions. I’ve personally have tried to make it as a lease operator at 2 different companies, pay having been based on cents per mile and load percentage pay. The age old concept of you need money to make money is still true. So the only one’s who benefit from your dream is the company and leasing provider, and that’s why it is promoted heavy still throughout the trucking industry.They get all the benefits and you get all the headaches and paperwork. You basically have just became your own secretary,and now the company needs to hire less.Seriously.

  3. Allen Smith

    Absolutely. Overall, these lease purchase options are a big money maker for the trucking companies.

  4. […] Truck Owner Operator Lease Purchase Program Survey Results […]

  5. […] survey about this huge scam in the trucking industry.   You can check out the most recent data here . . […]

  6. Dexter Roberts

    TransAm claims it has the best leasing program in the industry.
    Does anyone have any stories of successfully working with this program? Any horror stories to report?

  7. […] before, eased up due to the economic turmoil and we saw this rate fall to 57% as reported in our survey update in April, […]

  8. Rick Smith

    WHY would ANYONE pay a CARRIER to: drive, fuel and maintain the CARRIERS’ vehicle?

    Here is a hint for all you “would be” owner operators:

    If you are a REAL O/O and are frustrated with your lease agreement, you AND YOUR TRUCK walk away. YOU can walk away from the deal in a lease purchase program but THEY KEEP THE TRUCK.

    If you want to be an O/O (and Gawd forbid I own three of them and can’t understand why ANYONE would do it) GO BUY A CHEAP TRUCK!!!! There are plenty of older trucks out there that have had in frames done on them and will get you started and established. STOP pissing your money away for the “prestige” of a title. A lease purchase “Owner Operator” is a COMPANY DRIVER living in an altered state of consciousness!!!

  9. ED

    I drove for Central Refrigerated Service for 9 months and at least once a week they badgered me to become and O/O but I didn’t because of the cost of the lease.Every truck that they had was over 1100.00 dollars a week and I figured it out that they were getting at lease 3 trucks from whoever they lease from and allot of the drivers would go weeks without pay because they weren’t getting the miles to make the payments what the industry needs to do is set a minimum that these O/O needs to drive and if they don’t then they make the payments for them,Cause nobody likes to work for free.

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