The Over-The-Road (OTR) Trucker is an American icon.
Who hasn’t passed, or been passed by, an eighteen-wheeler and fantasized about leaving it all behind and becoming an interstate truck driver?
The freedom of the open road.
The late night solitude of the interstate, far from snooping bosses and annoying co-workers.
The steady drone of the interstate and hours with your own thoughts.
The independence and freedom of owning your own truck and calling your own shots.
Unfortunately, where there’s a seductive dream, there’re usually plenty of sales scams ready to exploit the starry-eyed dreamer.
We received this email from a respected trucking industry insider, who asked not to be named:
One thing you should investigate is the owner-operator leasing scam in the trucking industry.
Big trucking companies (or not so big trucking companies) aggressively market this ploy: they try to get the truck driver to buy a truck from the trucking company, thus making him an owner-operator. He then continues to be leased to the trucking company, while making his payments. It sounds great, the driver invests very little money up front, and if he makes the payments over the length of the agreement, he ends up owning the truck.
The devil is in the details, though. Many times, once the driver signs up, these trucking companies cut his miles, or otherwise make it difficult for him to make his payments. Once he finally defaults, they get the truck back, and keep whatever payments he has already made.
I suppose there may be some legitimate lease to purchase deals out there, but most are scams.
In 2011, Smith released the findings of his survey on owner-operator company lease purchase programs. The survey pulled in 3,611 responses from professional truckers across the country.
Smith found that “although there are company lease drivers who have done well with these lease programs, the majority of these trucking company lease purchase programs are designed for the driver to fail.”
74% of respondents reported that the Owner Operator Lease Purchase Program they were under required no money down and no credit check.
80% of the drivers claim they were promised that they would be driving (and getting paid for) 2500 – 3000 miles per week. In reality, nearly half of the drivers reported driving only 1000-2000 miles per week. Nearly 80% drove fewer than 2500 miles per week.
The results:
The results:
The driver comments included these warnings:
“It’s a way to put drivers in the seat of a truck they own and not have to pay out any benefits, social security or workers comp. All you are is a cheap driver for them. Cheap labor.”
“They are one-sided. Only designed for company profit. You are just a glorified company driver. Company does not care whether you make a profit or complete the lease. They will just pass it on to the next sucker.”
“After all expenses, maybe $5,000 if I’m lucky.”
“I’m on target for earning a MINUS $2,000.”
“Lucky if I make $20,000 this year.”
“Net amount that I owe the company : $16, 910.78.”
“In 29 days, I sent $600 home to my family.”
“On track to make $9,600 this year after all lease and lease related expenses.”
“I’ll have a MINUS $9,000 loss.”
“All income went to the company. My annual loss will be more than $9,000 as reported by my accountant.”
“Take home pay was $15,000 for the year.”
You can read the full survey here: Company Truck Lease Purchase Program SURVEY RESULTS July 15th, 2011
Graphics: TruthAboutTrucking.org
ARE YOU FAMILIAR WITH OTR TRUCK LEASING PROGRAMS? WHAT DO YOU THINK? SHARE A COMMENT BELOW.
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P.t.l. paschall truck lines ..is another one to. Stay away from!!!!!! Just as its. Posted above...to the T..so I quit .they made up a lie and. Got away from with 2 weeks pay..over 2300.....beware ....j.s.
Listen...its a business decision. Drivers see the nice shiney truck and get all giddy like a 16 year old with his first car. They gotta have it!
Anyone who enters into a business agreement like a "fleece purchase" should of consulted with an attorney specializing in turcking...or at least called the OOIDA for advice.
But no....the driver makes a dumb decision without doing his homework and pays for it in the end.
I am not coming down on the drivers...I am just merely saying that most drivers look at the shiney truck though rosey glasses and dont bother to check the details.
Its that simple
i went to them thanking iwas going to make it and three weeks went bye i was ready to come in and i got no money and they kick me out of the truck,and now iam scard to trust any trucking company now.
Seward trucking out of seward ne is one not to drive for,too.
2nd lease truc almost paid off been at henderson trucking 6th year would have never made it if any off time
dont take holidays off no time off 52 weeks per year 70 hours a week is the only way to make it
2nd lease truc almost paid off been at henderson trucking 6th year would have never made it if any off time
dont take holidays off no time off 52 weeks per year 70 hours a week is the only way to make it
I have been up to otr leasing 3 times and met Matt very good and very nice salesman. terrence I have not met but talked on the phone many times emails answers all your questions and takes care of you I had my lawyer look at the contract and he said it was a good one.for the truck the warranty and the fact that I can't go down and buy a brand new oneI'm going to make it work.word to the wise I would stay away from any leases that you cannot move the truck to a different company I got screwed on that back in 2000 to 2004 on a CTI lease purchase when they ended the lease purchase program abruptly 89 trucks at taking back we had 30 day notice and that was a bad deal that we almost had a truck paid off anyways good luck you got to work hard for what you want otr good people and their members of oida .
I june 2014 65 drivers were told to return there trucks to Kenny adams trucking 1798 64 spur wynne,ar 72396 we were told Kenny was in bad health and he had to close the company down and he had sold the trucks totruck centers of Arkansas freightliner 11700 valentine road north little rock,ar 501-955-3200 they took the trucks there for a while then they went back and got the truck back re sold the trucks to new drivers these trucks was on a 36 month lease with a $15.000 bal freightliner Kenny adams Claudia wiles were involved in this fraud
Here's the problem and the reason why drivers sign these leases. I was recruited by ptl in may. They made all the promises over the phone and when you get to orientation you are tired, broke, and I've 1000 miles from home. You either agree to what's in the contract or you are going to be homeless in Kentucky with no way home. I still work for Ptl as a lease operator. Even if I wanted to leave I can't because they won't let me put together a good enough paycheck to pay my way home. They shut off your fuel card when you say you want to go home. This company acts like terrorist.
OTR Leasing in Liberty MO ... BUYER BEWARE!!! I entered into a lease agreement on a 2010 freighliner cascadia that had a brand new motor installed..I entered the agreement because I was told that if any maintenance problems occurred that the motor was under warranty, and if anything else were to go wrong that they would help me out with the expenses. I was told by Matt "we are here to help you succeed, we are not just going to let you go out of business." LIES, LIES, LIES...I put 7000 dollars down on the truck and I have driven the truck less than 50000 miles and unfortunately I'm in the shop replacing everything around the motor to the point I'm now spending 5500 more dollars on this truck, and once contacting OTR the most help I could get out of them is, and I quote " good luck on your lease" by Roman. If you don't believe me I will gladly send you the emails between roman and myself.. I also referred another driver to them and he is now shut down with no help.. Please beware of these guys.. Keep your money don't do it!! I will also refer you to other drivers who are in the same situation... They are selling garbage and expect to spend a lot of money to get your equipment up to standards..