Lease-Purchase Trucking: Read This Before You Sign

In a lease-purchase deal, you lease a truck from the carrier (or its affiliate), pay weekly out of your settlements, and may own the truck at the end. It's pitched as a path to becoming an owner-operator.

Why many drivers end up earning less

• You carry the costs: the truck payment, fuel, repairs, insurance and tires come out of your pay.
• The carrier controls your freight: if loads are slow, the weekly lease payment is still due.
• Big repairs hit you: one engine or transmission problem can wipe out months of profit.
• Walking away can cost you the money you've already paid in.

Questions to ask

1. What's the weekly payment, and what's the total over the lease?
2. Who pays for major repairs, and is there a maintenance escrow?
3. How many miles are guaranteed each week?
4. What happens if I end the lease early?
5. Can I haul for other companies?

A safer path

Drive as a company driver for at least a year. Learn your costs per mile. Then, if you still want to own a truck, compare lease-purchase terms with buying your own truck and leasing onto a carrier like Landstar.

A simple way to test a deal

Add up your expected weekly revenue at a realistic mileage. Subtract the lease payment, fuel, insurance, maintenance escrow, tires and permits. Divide what's left by the hours you'll work. If the answer isn't clearly better than a company driver's pay, walk away.

Signs of a bad deal

• You can't take the contract home to read before signing.
• The truck is old, but the payments are high.
• Maintenance costs are charged at rates you can't check.
• Recruiters pitch it in your first week of training.

Frequently asked questions

Do any drivers succeed with lease-purchase? Yes, especially experienced drivers who understand their costs and get fair terms. It's risky for brand-new drivers.

What's the difference from being an owner-operator? An owner-operator owns or finances their truck independently and leases onto a carrier. They can take it with them if they switch carriers.

Bottom line

Get a year of experience as a company driver, learn your true costs, and have someone independent read any lease before you sign.