Questions About Our Lease Program
69. Does your company offer a lease-purchase program?
Yes, we offer a lease-purchase program.
70. Is the driver required to be a company driver first before becoming eligible to lease a truck?
You must be a driver at our company for at least six months with satisfactory performance. If you are brand new to trucking, we recommend waiting a full year.
71. Are your hiring qualifications for lease-purchase different than what they are for your company drivers?
Hiring qualifications remain the same for drivers or potential leased operators.
72. What is required from the driver to get started with the lease?
You must complete six months of satisfactory service including no accidents or minor accidents, on-time delivery, good communication with dispatch and shop, and a minimum of 10,000 miles per month.
73. What type of equipment do you lease?
Equipment available for lease is company-owned and typically is a Kenworth T680. All trucks have fewer than 500,000 miles and are four years or newer.
74. Does the company buy the trucks from a dealership when a new driver starts, or do new drivers use equipment that has already been leased out?
New drivers take on used equipment the company has in the fleet.
75. How long is the lease?
The lease runs 2-3 years depending on the truck, mileage, etc.
76. How much does it cost each week for the lease?
Typical payment is $750+ per week depending on mileage and truck specs.
77. Are drivers required to pay truck payments when they are off the road?
Owner-operators are still required to make lease payments when off the truck.
78. Is there a balloon payment or a buyout at the end of the lease?
Depending on the year and mileage of the truck, there is typically a balloon payment at the end of the lease, if the owner wants to purchase the truck. If the driver intends to upgrade the truck or stay in the lease program, the balloon is either extended to a different date or rolled into the next truck. The lessee always gets the equity they’ve acquired while leasing a truck from the company.
79. What are all of the “other” charges that drivers are required to pay in addition to the truck payment?
A driver who becomes an owner-operator is responsible for all costs of operating the truck. Lumpers are reimbursed with a receipt. We have several discount programs for fuel, insurance, maintenance, etc. that we pass along to the leased operator.
80. What type of insurances are lease purchase drivers required to pay?
Our lease requires Physical Damage and Bobtail coverage.
81. Are drivers responsible for finding these insurances on their own?
Operators are always welcome to find their own insurance, but it can also be secured through the company’s group policy.
82. What type of escrow accounts does the company make the driver set up?
We set up a maintenance account at $25.00 per week for a leased truck.
83. What happens to the driver in the event they are unable to finish the lease?
If an operator is unable to finish the lease, the options are as follows: The lease requires the driver to continue making payments until the truck is released or sold. Or, if the operator returns to company driver status, all payments are waived. All accounts are settled 45 days after the lease ends, and if money is owed, it is returned to the operator.
84. Do lease purchase drivers get special preferences for freight?
Operators who use our in-house lease program are treated like all owners and drivers. We do not practice special treatment.
85. Are LP drivers paid for all miles?
All operators are paid a percent of load—no empty miles are paid.
86. Do LP drivers get 100 percent of the fuel surcharge?
The operator receives 100 percent of tractor fuel surcharge.
87. Are LP drivers paid for the mile or by percentage?
All line haul freight is paid by percent: the operator gets 100 percent of stop pay and tractor fuel surcharge and detention is paid on percent to operator, all amounts listed on settlement.
88. What type of maintenance is the driver responsible for?
Operators are responsible for maintaining their tractor to meet federal DOT requirements.
89. Will someone in the office keep track of when regular maintenance is due or is the driver responsible for scheduling their own maintenance?
The company is happy to keep track of maintenance on all operator trucks and willing to schedule maintenance on leased trucks if requested.
90. Where are the repairs performed? Does the driver have a say in this?
Repairs can be done at the operator’s choice of shop, however, the company shop has a reduced labor rate and discounted parts. If the truck is involved in an accident, the company requests the repairs be done locally at a reputable shop.
91. How often are drivers paid? By the week or by the load?
Operators are paid weekly.
92. Do LP drivers need to have their own trailers?
The company provides all trailers, no rental is charged to the operator, and all expenses are paid by the company for operation of the trailer.
93. Does your company offer any type of tax services to help the driver out when filing their taxes?
We do not have an in-house tax service but will offer several suggestions and help with tax planning if requested by the operator.
94. What are the total weekly expenses for all charges on the lease each week, not including fuel?
We are unable to quantify weekly expenses as all operators run their business differently.
95. Can the driver get fuel anywhere or are they limited to certain fuel stops?
Operators can purchase fuel at any stop—the company provides lists of discounts daily to all operators.
96. Does the company keep track of all maintenance records for each truck?
The company keeps all maintenance records, and they are available for a potential operator to review prior to leasing a truck.
97. Can the driver get the contract for the lease sent to them before coming in so the driver can review the lease?
The lease document is available to all drivers who currently work at K&J or are considering the lease program in the future.
98. What are the most negative things about your lease compared to what other companies are offering?
The biggest drawback for some drivers is our six-month waiting period. However, we feel it’s necessary for a new driver to get to know our program prior to entering into a lease. Our lease program has been very successful over the past 25 years with very few issues.
99. Can you give me a name and number of a current lease driver so I can get feedback directly from a driver on how the lease works?
Yes, current operators in our lease program are available for questions. For the name and number of a current leasing driver, email us!
100. Is the driver allowed to customize the truck, such as installing new wheels, shifters, seats, stacks, etc. before having it paid off?
An operator can customize a leased truck as long as they understand the guidelines set forth in the lease. Operators cannot use maintenance escrow for customization of the truck.
