Have you always wanted to own your own rig, but the financial aspect of the endeavor gets in the way? Luckily, lease purchase programs or rent-to-own rig might be exactly what you’re looking for. Not only does this allow you to ease yourself into becoming an owner-operator, but it’s also less of a financial commitment so you don’t have to worry about paying for a rig that you can’t afford. A lease purchase job is a great way for you to maintain independence without having the financial burden that many independent truckers fear. The program isn’t for everyone, but below we’ve broken things down so you can make your own informed decision.
What Are Lease Purchase Programs and Jobs?
A lease program essentially allows you to rent out a rig. A lease program job, however, not only allows you to rent your rig, but a company also gives you a stable job as well. Those working for a company like this will have the ability to rent his or her rig for a reasonable price and even have the option to purchase the rig at when the contract has expired. Leases are typically structured for a set time period, ranging from one to three years and payments are required, without fail, for the complete term of the contract. If, at any point, you decide that you are no longer interested in continuing use of the semi truck, an early termination fee will be assessed and the security deposit will be forfeited. However, if you do decide to stay with the payments, you’ll be given the option to purchase your rig at a much lower price and you’ll already have a job locked down so you can take advantage of the lease purchase program.
Pros and Cons of Lease Purchase Programs
Pros of Lease Purchase Programs
Flexibility – One reason that many truckers will choose lease purchase programs is the fact that they can stop payments at any time and in many cases set his or her own schedule. While lease purchase jobs are a great way to ensure that you have work lined up for the future, many truckers will choose to simply lease a rig and find work as an owner-operator. This will give them the freedom to decide when and how often they’re hitting the road.
Less Responsibility – Although this might sound irresponsible, it’s okay to admit that you might not want the responsibility of owning a truck. Like any expensive purchase, owning your own rig is a big commitment, and many would prefer to test out the waters before jumping into the pool. Another great benefit of lease purchase jobs is that many companies will cover maintenance costs as well.
Tax Deductions – One final benefit that many drivers will forget about is the ability to write off some of your leasing expenses as tax deductions. This will ensure that you’re saving some money in the future.
Less Profit – Although you won’t bear the financial burden of being a full-fledged owner-operator, you also won’t make the full amount of income. The leased vehicle remains the property of the company issuing the lease and they will continue to profit from your use of the vehicle. This basically means that the company will be taking a portion of your income on top of you paying to use the company rig.
Restrictions – Many companies will put restrictions on the amount of mileage you can put on a rig, which could limit the amount of money you can make during your trips. Don’t bypass these restrictions; you might end up having to purchase extra insurance on your rig, which can quickly become very costly. Make sure you speak with the director of these lease purchase programs to ensure that you’re getting a fair contract. Finally, since you don’t own the rig, you also won’t be able to modify it how you like either.
Price – Probably the biggest issues that drivers have with lease purchase programs and jobs is the fact that they usually have to pay more for the rig at the end of the lease than they would have if they bought the rig outright. This is why many will try to save up for a rig to purchase right away so they can maintain financial independence.
If you’re looking for a lease purchase program or job, feel free to check out AllTruckJobs so we can land you the perfect gig.