Many new truck drivers are entering into to lease purchase agreements with large motor carriers. At first glance many of these agreements look to be a very good deal for the new driver. Often times they are offered with no down payment, no credit check, and a truck payment generated by the load payment.
It is important for the drivers to completely review all of the details of these lease purchase agreements prior to signing. There are often times other stipulations that make them at a minimum less than attractive.
Many of the large motor carriers offer the lease purchase agreement to the driver that provides no ownership of the truck until the truck has been paid off in full. This means that the driver will not be able to make any modifications to the truck and will not be able to choose the work that they are doing with the truck until the truck is paid off as well.
When these stipulations are in place, the driver is often left with no options but to haul for the motor carrier that is offering the lease purchase until the expiration of the term. Drivers at this point find themselves tied to the motor carrier for a lengthy amount of time regardless of working conditions, pay, and the amount of driving needed by the driver.
Divers with a good credit history are recommended to inquire about a loan from a credit union or bank to purchase truck prior to entering into a lease purchase agreement from a large motor carrier that contains these types of stipulations. When purchasing a truck with a loan from a bank or credit union the driver will have more flexibility and control over the hauling contracts that they agree to while the truck is being paid for.