The lease purchase program at HMD Trucking offers drivers a unique pathway to truck ownership, which can be a lucrative step in a trucking career. This article examines the financial benefits and important considerations of participating in the dry van lease purchase program at HMD Trucking, helping drivers make informed decisions about their career paths. Learn more about hazmat response team jobs.
Contents
Overview of Lease Purchase Program
How It Works
The lease purchase program affords drivers the opportunity to lease a truck from HMD Trucking, but purchase the truck at the end of the lease term. Normally, payment will be made through weekly deduction from the driver’s earnings until such period as the end of the lease, when a driver may buy the truck at a pre-determined price.
Key Features
This is by design, as the HMD Trucking program is driver-friendly. Driver down payments are small, the per-week rates are competitive and the final payment transfers the ownership of the truck to the driver. This would therefore allow access to truck ownership without the excessively high initial costs that are generally needed to purchase a truck upfront.
Program Benefits
Higher earning potential
As owner-operators, drivers who complete the lease purchase program can stand to earn more than company drivers since it opens the door to taking jobs as independent contractors. These jobs may pay much more than standard employee driving positions.
Tax Benefits
Lease payments and other related expenses, including routine maintenance and upgrades, may be tax-deductible for an owner-operator. Being able to write this off when paying taxes greatly reduces the net expense of the lease and operation of the truck.
Things to Keep in Mind
Financial Commitment
A lease purchase agreement involves a long-term financial commitment not to be entered into lightly. The driver must ensure he can sustain sufficient cash flow to make the lease payments during slow business periods.
Maintenance and Repairs
Once on the road, drivers who transition from lease to ownership become responsible for all maintenance and repair costs. It is expected that as an owner-operator one would prepare for those expenses, which could be hefty depending on the age and condition of the truck.
Contract Terms
It is crucial that the drivers understand their lease agreement inside and out. These are some of the things that need to be considered; the total cost of the lease, how often payments must be made, and what, if any, are the penalties for early termination or default.
Conclusion
The HMD dry van lease purchase program brings a possible path to truck ownership, said to give drivers greater independence and possibly higher earnings. Financially, however, it really needs some serious deliberation. Any driver who contemplates a leap to this should weigh the pros against responsibilities and make sure drivers have adequate plans in place for setting up the financial end of owning their truck.
