The three most common ways of becoming an owner operator are financing a truck from a dealer, joining a lease-purchase program from a carrier, or buying a new or used truck up front.

So what should you do?

In this video, Ronen goes over the pros and cons of leasing, financing, and buying, also explaining what his recommendations are for drivers in different circumstances.

Do you have any other tips to add for new owner operators out there? Leave a comment down below!


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Chapters:
00:00 Introduction
02:12 How to finance a truck
02:43 Financing pro #1: you're not tied to a single carrier
02:56 Financing pro #2: there's no big buyout at the end
03:15 Financing pro #3: you can pay off your loans early
03:25 Financing CON #1: you need good credit to finance
03:35 Financing CON #2: you might need more money upfront
03:46 Finance companies want a higher down payment on used trucks
03:56 Financing CON #3: missing payments can affect your credit
04:13 Financing CON #4: finance companies will come after your assets
04:42 Financing CON #5: banks don't care if the lease terms aren't viable
06:07 WATCH: How to spot red flags in a lease purchase program
06:27 Leasing PRO #1: carriers don't care about your credit
06:49 Leasing PRO #2: you can get cheaper shop rates from the carrier
07:31 Leasing PRO #3: flexibility on the down payment
08:02 Leasing PRO #4: less waiting time than financing
08:31 Leasing CON #1: you are tied to one single carrier
08:56 Leasing CON #2: some carriers have rip-off terms
09:32 Leasing CON #3: your mileage is in one carriers hands
10:41 Purchasing a truck outright is the best choice out of the three, if you can afford it
11:05 Finance if you have credit and the down payment
11:25 Be aware of dealer's finance interest rates
12:54 Lease the truck when you lack down payment and have bad credit
14:39 Research the carrier before leasing