Becoming your own boss is a dream shared by many truck drivers.

And it may not be so far out of reach. A leasing purchase is one option that can get you on the path toward owning your own truck, quicker than you think.

Many new trucks range from $90,000 to $150,000 depending on the style – a conventional sleeper and added comfort options can ramp up the cost – which can put financing out of reach for many drivers.

A lease purchase from a trucking company changes the game completely.

When entering into a lease-purchase agreement with a trucking company, you are agreeing on the price of the truck as well as the lease terms, usually anywhere from two to four years, depending on what kind of monthly payments you can afford.  During the lease, you are responsible for the maintenance and upkeep of the truck along with the agreed-upon monthly payments. When the lease term is up, you have an option to purchase the truck or return it, along with an option to do a new lease-purchase on another truck.

After a few years, you’ll have an option to pay off the remaining balance of the truck, and you’ll be able to enjoy life as an owner-operator without a lease or finance payment.

The benefits of a lease purchase program are many, but there are low upfront costs, creating an opportunity for most to start their journey toward being their own boss as an owner-operator, and you can make substantially more money compared to a company driver.

As with all contracts, make sure to read the complete contract and understand the contractual agreement and oblations that are part of that contract.  If you take good care of the truck and establish a good maintenance program, you’ll help ensure that your truck retains its value.

There are two main types of lease-purchase programs, a capital lease, and an operating lease. Each lease program will have its own benefits and drawbacks, so it’s important to evaluate several lease purchase options to decide which one best suits your needs.

Here’s what you need to know:

Capital Lease

If you choose a capital lease, your truck will be considered your company asset, and it will be seen as property.

You can think of a capital lease like owning the truck as a piece of property, whereas an operating lease is seen more as a rental agreement.

Under a capital lease, drivers can write off not only the payments but also the other aspects of keeping the truck running, such as fuel, maintenance, and repairs, since the truck is considered an asset.  A major advantage of a capital lease is that you may also be able to apply depreciation on the truck when filing your taxes.  Capital leases are long-term, and with a capital lease, the rights of the asset (the truck) are transferred to you in what you would consider a loan.  You will be required to account for the principal and interest payments and for tax purposes the present value of the asset (the truck) will be applied to your balance sheet every year.  The loan amount will be considered a liability.  It is highly recommended to speak with a professional accountant or tax professional to review the pros, cons, and tax implications of a capital lease.

Operating Lease

An operating lease differs from a capital lease in that the truck is not considered an asset, and drivers cannot claim deductions for the truck on their tax returns. The ultimate tax benefits will go to the leasing company, which technically owns the asset the truck.

Essentially, an operating lease is more of a rental agreement, without ownership rights.

Which is the better lease option?

When choosing a lease option, you want to consider your long- and short-term goals. If your goals are short-term and you have no plans to purchase your truck when the leasing period ends, then an operating lease is probably your best choice. If you are looking at the long term and plan on purchasing your truck at the end of your lease, a capital lease might be a better option.

There are several trucking companies that offer lease purchase programs, which will allow you to get on the path of being your own boss. Don’t be afraid to reach out to different companies and inquire about their lease purchase programs. Each program has different benefits, such as trucks available, choice options on freight, dedicated running lanes, as well as terminal locations.

Companies with lease purchase programs

Here are just a few companies that offer lease purchase programs:

Anderson Trucking Service, Inc.

ATS offers a one-year lease program and is pretty much the only company offering this. ATS’s goal is to allow a company driver to quickly become an independent contractor. You’ll be able to get behind the wheel of your own truck with no money down, no credit check, a $3,500 sign-on bonus, and a $4,000 completion bonus if you stay with the company for a year.

Options available include:

• Flatbed/specialized with a $3,500 sign-on bonus, $4,000 completion bonus and 30-day “bumper-to-bumper” warranty.
• Van pad wrap with a $1,500 sign-on bonus, a $2,000 completion bonus ($8,000 on two-year leases), and a 30-day “bumper-to-bumper” warranty.
• Heavy haul with a $10,000 sign-on bonus, a 30-day “bumper-to-bumper” warranty, low down payment, and purchase options at the end of the loan.

You may want to use the sign-on bonus directly as a down payment on the lease purchase truck. ATS has a lot of favorable terms, and with no credit checks, this is a great lease option for anyone that may have had some credit issues in the past.

Dart

Dart wants to help you become your own boss and earn up to $165,000 or more per year in the process. Dart has a robust lease purchase program that has all of its financing done through Highway Sales, Inc. The lease program comes with the following perks:

• $0 down
• 99% no-touch freight
• Up to $500 per month in lease payment savings
• 65% load revenue
• Truck years from 2014 to 2019

Costs per month will vary depending on the options you choose, but based on the figures that are available from Dart right now, prices start at $1,395 per month for a 2014 Freightliner to $2,395 for a 2018 Kenworth.

While Dart does offer a great lease program and has a lot of great reviews, the company does seem to be on the lower side when offering driver pay. Still, with steady work and a lot of great trucks to lease, Dart may be a good option for you.

PAM Transport, Inc.

PAM Transport claims to have one of the top lease purchase programs in 2020. The company allows drivers who are current company drivers to enter into their lease program and will automatically reclassify the driver as an owner-operator.

PAM Transport has a lot of benefits, including:

• Low monthly payments with fees as low as $599 per week.
• No hidden costs or trailer rental fees.
• PAM perks, such as shop and fuel rates.
• Steady work throughout the duration of the lease.

PAM helps keep the wheels rolling so that you the owner-operators can keep making money at all times. The company is able to offer lower rates than some of the competition, which often charges $750 to $1,200 a week for a lease.

PAM also covers Qualcomm fees, trailer fees, and cargo insurance, and maintenance and repairs are provided at the company’s shop rate, so you’ll be paying less overall as an owner-operator using PAM than an owner-operator using an outside maintenance repair company.

As a prime certified driver, you can participate in the lease purchase program with no money down and no credit check, and you have the option to purchase the truck outright at the end of the lease term.

Lease terms are three or four years with a repair and tire replacement reserve of 1 cent per authorized dispatched mile. Some additional benefits include:

• Breakdown pay under OEM warranty
• Loaner truck program
• Optional emergency fund
• Purchase option amortizes weekly with lease payments
• Earn 72 percent of revenue
• May finance a new or used APU in the purchase price of the truck and consolidate to one low weekly payment

Some of your responsibilities include weekly lease payments, a mileage fee, a tire fee, excess mileage fee, insurance, and taxes.

With the prime lease purchase, you have the opportunity to earn more money and more freedom.  You will also have more flexibility when it comes to home time, when and where you drive, and the look of your truck.

Riverside Transport, Inc.

Riverside Transport, Inc., provides potential owners with the promise of no money down, no payments when there’s time off and no headaches during the lease process. The company has a robust lease program with equipment options and a lease purchase calculator so that you know exactly how much you’ll be paying for your lease. If you are looking for a smaller trucking company (252 trucks) that still offers a great lease purchase program, Riverside Transport, Inc., is definitely on the list.

Riverside Transport, Inc.’s lease purchases are designed to make you your own boss. Every lease purchase gets the choice of deciding on payment plans, which include either flat weekly prices that never change or a variable per-mile payment.

As an example, using an RTI calculator on 2,800 average weekly miles with a 2019 model tractor, a flat weekly payment will cost $2,002.22. With a revenue of $3,668, that means a profit of $1,665.78. A variable, per-mile rate (which means you only pay for the miles you drive) will cost $0.768 per mile. With a revenue of $1.306 per mile, that means a profit of $1,506.98.

When lease purchasing with Riverside Transport, Inc., vehicles that have under 300,000 miles will come with a 100 percent bumper-to-bumper warranty. This mean that drivers won’t have to pay out-of-pocket expenses for maintenance, oil changes, preventative maintenance, or repair bills.

Riverside’s lease purchase program requires no money down and no credit checks. Benefits include reimbursed lumper and scale fees as well as zero trailer fees.

US Xpress

US Xpress has a very robust leasing program with the company claiming that an owner-operator is able to earn up to $175,000 per year or more. What stands out about this program is that there’s a 500,000-mile warranty and drivers only need six months of experience to join the lease program.

When you apply, there is no credit check, no money down, and no balloon payment.

Drivers will earn anywhere from $1 to $2 per mile, and there is a $500 maintenance deposit after your first dispatch. There is a pet policy for anyone that wants to drive with their pet, and dedicated weekly home time is also an option.

Additional discounts include maintenance, fuel, and tires.

Lease purchase terms and benefits also include:

• Low weekly payments
• A $3,500 sign-on bonus
• Three-week deferred payments

US Xpress has multiple trucks to choose from – including 2015 to 2018 Freightliner Cascadias or 2018 Volvos – and along with a steady work promise, it’s possible to remain profitable while operating your business as your own boss while still balancing home time.

It’s important to consider all of your leasing purchase options and to work with a trucking company that offers great benefits, top-tier trucks and multiple perks along with options when leasing. A lot of the companies will provide you with cheaper rates on fuel and maintenance, which lowers the overall cost associated with being an owner-operator.

If it is your first time dealing with a lease purchase and operating your own truck, it’s also beneficial to work under these trucking companies which provide you with consistent freight. Which helps to minimize deadhead miles.

The consistency and support, especially in the beginning, will allow you to confidently operate your own truck while you focus on running your business and being your own boss, having the freedom to set your own schedule and make the money you desire.