Lease-Purchase Agreement
A financing arrangement where a carrier leases a truck to a driver with option to purchase.
Definition
A lease-purchase agreement is a carrier-offered financing program where a driver leases a truck from the carrier with payments deducted from their settlement. At the end of the term (typically 3-5 years), the driver can purchase the truck. Caution: many lease-purchase programs are structured with high payments, balloon payments, or unfavorable terms that make it difficult for drivers to build equity. Industry experts recommend careful review before signing.
Why it matters to you
Lease-purchase is the most complained-about arrangement in trucking, and the complaints follow a pattern: the truck is only worth the deal while the carrier keeps you loaded. Read what happens if you leave, who pays for major repairs, and whether the balloon payment is realistic. Have someone independent read the contract. Walking away often means losing everything paid in so far.
FAQ
What does Lease-Purchase Agreement mean?
A financing arrangement where a carrier leases a truck to a driver with option to purchase.
Why does Lease-Purchase Agreement matter to a driver?
Lease-purchase is the most complained-about arrangement in trucking, and the complaints follow a pattern: the truck is only worth the deal while the carrier keeps you loaded. Read what happens if you leave, who pays for major repairs, and whether the balloon payment is realistic. Have someone independent read the contract. Walking away often means losing everything paid in so far.
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