Everything you need to know about Lease-Purchasing at Transfleet
What is a lease purchase program?
A driver on a lease purchase program does not initially own the truck but has the option to buy it after completing a lease agreement. This arrangement allows drivers to operate the truck as if they were owner-operators while making regular payments toward ownership. However, they may have less flexibility regarding load and route choices compared to independent owner-operators, and they still have to adhere to the lease terms.
Difference between an owner operator and lease purchase program
The key differences lie in ownership and financial responsibility. Owner operators fully own their trucks, while lease-purchase drivers have a pathway to ownership. At Transfleet, both operate under an agreement with a leasing company, which may come with both advantages and restrictions.
Lease-purchase pay
At Transfleet, lease-purchase drivers earn a percentage of the load after the fuel surcharge* is deducted from the load. (We figure our fuel surcharge amount from the (variable) current market rate, which is 17%.) Afer the fuel surcharge is figured out of the load pay, lease-purchase drivers take 74% of the load. Since drivers on the lease-purchase program pay for their own fuel, the fuel surcharge is then added back into their load pay. *See fuel surcharge definition below
Benefits of being on a lease-purchase program
1) More independence
2) In control of your schedule
3) Higher earning potential
4) Greater variety in equipment options
Challenges of being on a lease-purchase program
1) Increased responsibility
2) More expenses
3) Maintaining a budget for your business
4) Managing compliance as per the FMCSA
Services Transfleet Provides Lease-Purchase Drivers
Weekly Payment Schedule (if vehicle is on purchase plan from Transfleet/Knapp Brothers Trucking)
Operating Authority
Dispatching Team
Fuel Reports
Performance Data
Fuel Card Program WITH FUEL DISCOUNTS
53’ Dry Van Trailer Pool
Discounted Hourly Service Rate at www.transfleetservice.com
DOT Drug/Alcohol Testing Compliance
Tangible Trucking Community with Centralized Resources
Percentage Pay Calculator
Every load at Transfleet is paid after fuel surcharge is deducted. Lease-purchase drivers have the fuel surcharge added back into their pay after their percentage is worked out. For example: A load pays $1,000.00. Fuel surcharge is deducted at 17%, which leaves $830.00 left of the load. Lease-purchase drivers receive 74% of what’s left, and that takes us to $614.20. Add the fuel surcharge, $170.00 to $614.20, which comes out to be $784.20 to the owner-operator from a $1,000.00 load.
What is ‘fuel surcharge’?
A fuel surcharge is an additional fee that transportation companies apply to cover fluctuations in fuel prices. This surcharge helps carriers manage increased operational costs resulting from rising fuel expenses. It is typically calculated as a percentage of the base transportation rate and can vary based on current market conditions. By implementing a fuel surcharge, companies aim to maintain fair pricing while ensuring the sustainability of their services during volatile fuel price periods.
How to enter the lease purchase program at Trasnfleet
If you are interested in entering the lease-purchase program at Transfleet, there are two different paths that can be taken. If you are found eligible for leasing and you have a referral, you can enter in the lease-purchase program immediately (depending on truck inventory). The other path is if you are found eligible for leasing, but you do not have a referral, to establish a working relationship, you will be required to be a company driver for 90 days until you can enter the lease purchase program.