|
|
|
Osterkamp Trucking Inc. offers our company drivers in good standing, a very attractive lease purchase program. Drivers who have a good safety record and provide consistent on-time service for our customers are given the opportunity to purchase one of our tractors and become an owner operator.
Our programs are usually offered at very minimal start up costs to the potential owner operator. We have a $1000 deposit, which is refundable if the contractor successfully completes his/her lease with Osterkamp Trucking Inc. This makes it very easy for drivers who do not have the cash to put a $10-20K down payment at truck dealer to purchase a truck and become businessmen. The other advantage is that the driverŐs credit is not an issue. Those who have bad credit do not have to worry about not being able to purchase a truck or having to pay outrageous interest rates. The lease purchase contractor works for us and we deduct the truck payment from his/her paycheck. Another advantage is the truck payment does not show on the drivers credit report and therefore makes it less difficult to get credit for other things.
The payments are always kept to $1000 per month or $500 per settlement regardless of the age or price of the truck. This helps the driverŐs cash flow. A driver will simply pay more months for a more expensive truck. (Example: A $30,000 truck will be 30 payments of $1000 and a $72,000 truck will be 72 payments of $1000.) Keep in mind that our numbers include interest over the period of the contract. The prices that are given are not cash purchase prices.
There are several things that a potential independent contractor is responsible for during the period of his contract. They are the following:
- Truck payment - $500 per settlement
- Operating acct - $250 per settlement
- Licensing acct- approx. $ 200-300 per settlement
- Physical damage insurance - $100 per settlement
These payments will come out of every settlement but deductions are not limited to the above. They would also include fuel used during the pay period, insurance deductions, advances, other potential maintenance deductions and miscellaneous deductions such as cell phones.
The operating acct money is there so that if the lease purchase contractor has a maintenance problem, that money can be used to pay for the problem. Maintenance acct. money is only to be used for the truck.
Licensing money is saved up for the following yearŐs licensing so the contractor doesnŐt have to come up with all the money (several thousand) at the beginning of the year.
Physical damage covers the truck in case of theft or accidents.
Osterkamp trucking currently has approximately 65 lease purchase owner operators and the program has a very high success rate. Contractors are also able to use their tractor as a tax advantage. We donŐt sell the trucks to make money. We sell the trucks to our drivers to create longevity and reduce turnover.
|
|
|
|
|
