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.
FAQ
What does Lease-Purchase Agreement mean?
A financing arrangement where a carrier leases a truck to a driver with option to purchase.
Why is Lease-Purchase Agreement important for truck drivers?
Understanding lease-purchase agreement is essential for truck drivers because it directly impacts your daily operations, pay, or compliance. 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.