You go to a rental truck company if you need to rent a truck for a short period to attend to some personal or commercial needs.
If you need to own it for an extended time, you would have to go to a truck leasing company such as Penske full service truck leasing and Ryder Commercial Truck Leasing.
But what if it’s the other way around? How do individuals lease their trucks to a company? It’s possible and simpler than you think.
This article will explain in detail how you can lease your truck to a company and other necessary information about leasing your truck…
… whether getting box truck lease, reliable cargo van lease deals, dependable pick up truck leasing, and even the huge, articulated 53 foot semi tractor / trailer truck financing leasing. .
Some frequently asked questions will also be answered.
Can I lease my truck to a company?
Although the process is a bit more complicated than the question puts it, the answer is yes.
You can lease your truck to a company and receive monthly payments.
The hack is to know as much as you can before going into any kind of lease agreement with any company.
Do your due diligence, ask questions, follow up on research and get the best deal. Read more how to lease vehicles here!
How does it work?
First of all, you must have a truck that you drive.
Then as a truck owner, you and the company in question will agree to a lease contract.
This contract that dictates the leasing of your truck to the company is known as a lease agreement.
So, within the confines of this lease agreement, you (the owner-operator) are the lessor, since you are contracting your truck service to the lessee (the company or carrier).
At the end of the month, the trucking company makes the agreed payment.
RELATED: Discover More Facts About Leasing Commercial Trucks!
The Best Company to Lease My Truck To?
Similar to leasing a truck from a leasing company, there is no best company per se to lease your truck to.
The hard work is to look for a company that you can trust to give you the best deal.
Nevertheless, a few companies have shown themselves outstanding in their dealings over the years to be worthy.
On your quest, it’s always prudent to start with those. Read about best semi truck leasing companies here!
- The Ryder – Rent and Leasing,
- PAM Transport,
- Schneider,
- Riverside Transport,
- KSM Carrier Group.
What Is An Owner Operator Lease To Company Agreement?
Simply put, an owner-operator lease agreement is an agreed-upon contract.
It contains the specific terms and conditions under which a company is leasing truck services from individual truck owners.
An agreement like this is necessary for a number of reasons, especially since the lessor is not an employee of the company, but an independent contractor who offers trucking services to the lessee (the company).
What’s more, a well-crafted lease agreement must also make provision for maintenance and repairs that may arise throughout the deal.
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Principal elements of an owner-operator agreement
Your lease agreement must feature particular components before it can be considered airtight.
The “truth in leasing” regulations as put forward by the Federal Motor Carrier Safety Administration (FMCSA) helps see to this.
It guides the lease deal between the owner-operator and the company.
These lease agreement must-have components are as follows:
Parties to the lease agreement
This describes the basic information of the entities involved with the agreement.
Typically, it would feature the names and signatures of both the owner-operator and the trucking company.
Lease agreement duration
This simply states the dates from when the lease contract would begin and end.
It also details potential extensions that might come up for any number of reasons.
The truck and other equipment
Naturally, the lease agreement would also feature the various equipment that would be used, from the truck itself and its accessories, such as liftgates, dollys, trailers, etc.
There should be a clear indication about which party is offering the equipment and which party is paying for it.
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Use of equipment during the lease term
This part of the agreement clearly denotes that the trucking company retains possession of the equipment and has control of the owner-operator driver throughout the lease period.
The owner-operator has an obligation to follow the company’s terms after agreeing to it.
Owner-operator compensation
Different trucking companies have their ways of compensating drivers for jobs done and this has to be specifically stated in the lease agreement.
Here are some pointers:
- State the method of payment (eg. % of revenue or per mile).
- Outline the payment period (it shouldn’t be longer than two weeks from the submission of proof of delivery).
- Highlight that charge-backs handled by the company are the responsibilities of the owner-operator.
Legal obligations of both parties
The lease agreement must clearly specify the following:
- All cargo insurance or liabilities the trucking company is responsible for.
- The parties that are responsible for which paperwork, permits, type of insurance, or other such requirements.
RELATED: Can I Finance Bad Credit for Box Trucks?
Comprehensive terminal procedures
If any issue arises with the lease arrangements, as they sometimes do, the lease agreements should unambiguously state the termination process.
It should include everything from under which circumstance the lease agreement should be terminated to the process of seamlessly erasing the name of the company from the lease.
Provisions in the event of property damage
The lease agreement should contain in clear terms what the owner-operator is to do in case the cargo is damaged at any point of haulage.
How Much Does It Cost To Lease Onto a Trucking Company?
Save for the minimal expenses you incur when you are trying to draw up the lease agreement, leasing your truck to a trucking company doesn’t cost you (the lessor) anything per se.
Factors to consider before you lease your truck
Now that you know the critical components your lease agreement must contain, it’s time to review some critical factors you must consider before leasing your truck.
- Understand the whole leasing procedure
This must be your first step if you plan to get anything out of your lease.
Get a grasp of the leasing procedure, including the legalities.
Apart from helping you get the most out of your lease deal, it protects you from scammers and trucking companies who might be dealing in bad faith.
Ensure all parties sign the least. More importantly, you must keep all important paperwork safe in the event that any dispute ever arises.
RELATED: Are There Cons and Pros of Buying Vs Leasing for Business?
- Do your research
Before settling for one trucking company, make sure you have rich options.
Feel free to request a list of former clients from the trucking company you are reviewing.
Reach out to a few of them and see how they feel about doing business with the company.
Go on public credit report databases (Experian and Cortera) and check the credit rating of the company.
- Negotiate a favorable deal
Before writing out the lease contract, negotiate the terms of the lease. This should include everything from the number of miles per year to the monthly payment rate.
It’s always advisable to grab the initiative to write out the lease agreement and send out copies to the trucking company.
While the company will most likely review the lease contract, you will be on a better footing than you would have been if you let them write the lease agreement.
- Operate in accordance with the law
There are government regulations that guide interstate vehicle leasing.
For Instance, the United States Department of Transportation Code Section 376 covers the regulation of freight vehicles.
In it, all parties involved in a lease agreement are required to sign a written lease contract.
To also be stated are components such as lease agreement duration, payment agreement and schedule, degree of possession, and control of the truck, to mention a few.
- Determine and state responsibilities
Driving expenses like the cost of fuel, maintenance fees, toll, and license payments, are bound to come up.
State in your agreement who (naturally the trucking company or the lessee) is to take responsibility. The lessee taking responsibility for any truck damage should also be stated.
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- Always send receipts
After both the lessor and the lessee have agreed and signed as well as dated the lease agreement, send receipt to the trucking company. The lease procedure is incomplete without this last step.
FAQ about Companies to Lease Trucks To!
Can I lease my truck to FedEx?
Technically, yes you can. You own your truck, which has to meet the stiff requirement of FedEx.
Fetching from that, FedEx owner-operators are independent contractors in this way.
How much do Fedex owner-operators make?
How much a FedEx Owner-Operator Driver makes in the United States differs with every driver operating under different circumstances.
But the average FedEx Owner-Operator Driver has a yearly pay that stands around about $73,051.
How do I become a successful lease operator?
It’s one thing to lease your truck to a trucking company, but it is quite another thing to be successful at it. Becoming good at it takes some work:
- Become very knowledgeable about the leasing procedure.
- Always do your due diligence.
- Learn how to negotiate well.
- Ensure every term of the lease agreement is vivid and comprehensive.
Conclusion
There you go.
If you are reading this and you didn’t know before, chances are you now know that you can lease your truck to a trucking company.
And more importantly, you now know how to and what to do to get the best from your lease agreement.
