Recruiters work hard to find the best candidates for their open jobs. Using all available resources, recruiters need to need to differentiate their job postings from others that might be very similar. So it’s important to find out what your potential drivers are looking for in a new job and what can help your company stand out from the others. In some cases, it takes more than just switching up your recruiting tactics. Sometimes it means adding a new lane to your business strategy. Perhaps becoming a lease purchase company is something worthwhile to attract new drivers?
Many CDL drivers are looking to advance their careers by owning their own trucks. Often, these drivers need some support with buying the truck in the first place. However, this is a big step for a driver and requires a significant financial investment up-front. Lease purchase agreements can be a great solution! If your company owns a number of trucks and is willing to get into the business of selling them through lease payments to drivers, this model might work for you. And if so, this is where you start setting up your strategy to enter this new aspect of your business.
This type of arrangement can bring in new leads for your recruiting efforts, as many drivers are interested in becoming an owner operator someday.
But it also adds a level of complexity to your business. It’s essentially having a small business within a business, as the drivers are seeking to become their own company with its own vehicle.
Rules and Regulations
Becoming a lease purchase company requires a carrier to follow a set of federal guidelines that spell out all of the considerations of leasing. These rules inform all aspects of the leasing agreements. When drawing up all the various policies, paperwork, and contracts needed to lease trucks to your drivers, it’s important to understand the regulations that come with these transactions.
There are plenty of opportunities to market that your company is a lease purchase trucking company. As mentioned earlier, it’s a great way to differentiate yourself from the competition. And unfortunately, it is also potentially an opportunity for carriers to put out deceptive marketing messages—ones that might make it seem that it’s an easy way for a driver to become an owner.
The federal truth in leasing laws have been put in place to protect drivers and carriers entering into a lease agreement. These laws ensure transparency on all aspects of the lease.
These regulations ensure that nobody is less than transparent when it comes to these types of purchase agreements. So be sure to be clear and forthcoming on every aspect of the deal. That includes the terms, the payment schedules and all of the specific details of the lease. This will help you avoid any confusion later, or worse, lawsuits.
There is a level of risk associated with becoming a lease purchase trucking company. There’s always a hope that everything goes right, but sometimes things do go wrong.
All of the deal points of the lease agreement can be as specific as possible, and everyone can enter into the agreement hoping things run smoothly. But, that’s unfortunately not always the case.
The driver might not be able to keep up with the payments, and then they’re put in a position of needing to reclaim the truck. Additionally, the driver might unfortunately have an accident with the truck while it’s still under lease and not fully owned. This has implications on the lease company as well, if the driver can’t cover the costs to repair. Throughout the lease period, the carrier has an interest that the proper insurance and maintenance is being done on the leased vehicle.
Do Your Homework
Knowing what your potential drivers are looking for, helps you develop the best set of tools to recruit the best candidates. As your company grows and expands your recruitment efforts, consider looking into becoming a lease purchase trucking company. This can bring in new leads to your hiring office, and new revenue streams to benefit your bottom line. But it is also a complex business, with a decent amount of risk involved. As with most things, it’s good to do your homework to make sure you make the right decision.