Meeting Expectations As a Lease Driver

Dreaming of the freedom of being your own boss on the open road? The allure of becoming a lease driver operator is strong, promising increased independence and potentially higher earnings.  

But before you jump into a truck lease program, it’s crucial to understand the realities of this career path and the expectations of each carrier to ensure your expectations align with what the carrier offers.

On this last episode of the Driven Too Far podcast, Andy Winkler goes over the essential points to know before becoming a lease driver. 

 

What You Need to Know Before You Lease

A clear and open conversation between you and the carrier is key to a successful partnership.  we’ll guide you through the essential questions you need to ask before signing any driver lease operator agreement to help you make an informed decision and find a program that truly works for you.

Is a Lease Agreement Right for You?

Truck lease programs are fundamentally different from traditional company driver positions. As a lease driver, you essentially become an independent contractor responsible for your own expenses and business operations.  

While this can be incredibly rewarding, it also comes with unique challenges and responsibilities.

Potential Benefits of Leasing

Why would you choose a leasing program over being a company-hire driver? What are the benefits for your economy and overall comfort? 

• Increased Independence: Lease drivers have more control over their schedules, routes, and the types of loads they haul. This flexibility allows for a more personalized work-life balance and the freedom to make decisions that best suit your needs.
• Higher Income Potential: Lease operators often have the opportunity to earn more than company drivers, as they receive a larger percentage of the revenue generated from each load. However, it’s important to remember that your income will also depend on factors like your business management skills, fuel efficiency, and the rates you negotiate.
• Tax Advantages: As an independent contractor, you may be eligible for certain tax deductions that aren’t available to company drivers.

 

 

Risks and Responsibilities of Leasing

However, is not all fun and games; being a lease driver comes with its own set of responsibilities and costs that otherwise you might not encounter as a company driver, and they need to be taken into serious consideration since the company will expect you to cover these expenses and to be responsible for your equipment. 

• Maintenance Costs: You’ll be responsible for covering the costs of maintaining and repairing your truck. This can be a significant expense, so it’s important to factor it into your budget and understand the carrier’s maintenance program.
• Finding Loads: Securing consistent, well-paying loads can be a challenge, especially for new lease operators. You’ll need to build relationships with brokers and shippers or utilize load boards to find suitable freight.
• Business Expenses: In addition to maintenance costs, you’ll also have to pay for fuel, insurance, permits, and other business-related expenses.

 

Different Types of Lease Programs

There are several types of truck lease programs, each with its own advantages and drawbacks:

Lease Purchase

This program allows you to eventually own the truck by making regular payments over a set period. However, the lease payments may be higher than other programs and you will have to pay for any repairs or maintenance.

 

Lease Operator

In this arrangement, known as a lease-on arrangement, you lease the truck from the carrier and operate under their authority. This means that the carrier will be responsible for providing you with the necessary permits, licenses, and insurance to legally operate the truck.

 The carrier will also be responsible for maintenance and repairs on the truck. You will be responsible for paying the lease payments to the carrier, as well as for fuel, tolls, and other operating expenses.

 

Independent Contractor

This is the most independent option, where you own your truck and operate under your own authority.

Each program has different financial structures and levels of support, so it’s important to research and compare them carefully before making a decision.

 

 

Questions to Ask Before Signing a Driver Lease Operator Agreement

Before you sign any driver lease operator agreement, it’s crucial to have a frank conversation with the carrier and ask the following questions

 

Financial Terms:

• What are the weekly truck payments?
• How are fuel costs handled?
• What are the insurance requirements?
• Are there any additional fees or charges (e.g., administrative fees, trailer rental)?
• Maintenance and Repairs:
• Who is responsible for maintenance and repairs?
• Is there a maintenance account included in the lease?
• What is the process for getting repairs authorized and completed?

Load Selection:

• How much control will you have over choosing loads? Can you turn down loads that don’t fit your preferences?
• What is the average length of the haul? Are they mostly regional or long-haul loads?
• What types of freight does the carrier typically haul? Does this align with your experience and preferences?
• Home Time:
• What is the carrier’s policy on home time? Can you expect regular home time, or is it more sporadic?
• How does home time work for lease operators compared to company drivers?
• Support and Resources:
• What kind of support does the carrier offer to lease operators? Is there a dedicated dispatcher or support team available?
• Are there any fuel discounts or maintenance assistance programs available to lease operators?
• Does the carrier offer any training or mentorship programs for new lease operators?

 

 

Setting Realistic Expectations for Lease Trucking

Before diving headfirst into a lease agreement, it’s crucial to set realistic expectations. Lease trucking isn’t a magic bullet for instant wealth or a life of leisure. 

It’s hard work, and it requires dedication, discipline, and a solid understanding of the business side of trucking.

While lease operators can earn more than company drivers, it’s important to factor in expenses. Your income will fluctuate based on several factors, including market conditions, fuel prices, and your ability to secure high-paying loads.

 

Workload

As a lease driver, you’re essentially running your own small business. You’ll be responsible for managing your schedule, finding loads, handling paperwork, and taking care of your truck. This can be a lot of work, so be prepared to put in the effort.

The lease driver lifestyle can be demanding, with long hours on the road and time away from family. It’s important to consider how this will impact your personal life and relationships.

 

 

 

Common Misconceptions About Lease Programs

Some drivers mistakenly believe that lease programs are a guaranteed path to riches or that they’ll have complete control over their work. 

However, the reality is often more complex. It’s important to research thoroughly, ask questions, and understand the terms of the agreement before making a decision.

 

Finding the Right Fit: Choosing a Truck Lease Program That Works for You

Choosing the right carrier and truck lease program is crucial for your success as a lease operator. Here are some tips to help you find the right fit:

 

• Research: Don’t just go with the first carrier that offers you a lease. Research different companies, compare their programs, and read reviews from other drivers.
• Talk to Other Lease Operators: Reach out to experienced lease operators and ask about their experiences with different carriers. They can provide valuable insights and advice based on their firsthand knowledge.
• Consider Your Needs and Priorities: Think about what’s important to you in a career. Do you prioritize home time? Do you have preferred routes or types of freight? Make sure the carrier’s program aligns with your individual needs.
• Look for Transparent Communication: A good carrier will be upfront and honest about the terms of their lease program, the expectations for drivers, and the support they offer. Avoid companies that seem evasive or pushy.

 

Real-World Example of a Lease Driver Experience

At Chief Carriers, we’re committed to transparent communication and setting realistic expectations for our lease operators. 

We recently had an experience with a driver who left our program due to unmet expectations. While we were disappointed to see him go, we used this as an opportunity to reflect and learn.

The driver felt that he wasn’t getting to choose the loads he wanted and that there was a mismatch between his preferences and our freight network. 

This highlighted the importance of having deeper conversations upfront to ensure alignment between a driver’s goals and the carrier’s operations.

 

Drive with Chief

Becoming a lease driver can be a rewarding career path, but it’s not without its challenges. By understanding the ins and outs of truck lease programs, asking the right questions, and setting realistic expectations, you can increase your chances of finding a carrier that’s the right fit for you.

If you’re considering becoming a lease operator, we invite you to contact Chief Carriers. We’re committed to open communication, transparency, and providing the support and resources you need to succeed as an independent contractor.

If you have any experiences with fuel fraud or tips for preventing it, we’d love to hear from you! Share your thoughts in the comments below, or tune into the full episode of Driven Too Far to learn more about this important issue.

The Driven Too Fast Podcast is produced by Two Brothers Creative.