A leasing on question
When leasing on with a company, knowing that you will be only letting my non cdl MC mature, here are a few questions you must know to ask.
Here’s what you must know and ask before leasing on while letting your non-CDL MC mature.
Your situation is specific: you own the equipment, you have (or are getting) your own non-CDL MC, and you only want to lease on temporarily so your authority can age / gain history / get insurance more easily. That changes some of the risk.
Must-Ask Questions (get answers in writing)
- Percentage / pay structure Exact % of gross (or per-mile rate). What is deducted before the % is calculated? Ask for a sample settlement sheet from a real load.
- Can I refuse loads? True independent contractor status requires the right to refuse. Forced dispatch is a major red flag.
- Who pays for what?
- Liability & cargo insurance (carrier’s policy while under their authority)
- Bobtail / physical damage
- Trailer if you use theirs
- Fuel, tolls, permits, ELD, plates, IFTA
- Any weekly or monthly “lease” or “dispatch” fees
- Settlement timing How many days after delivery do you get paid? (Federal rule is within 15 days of submitting paperwork.) Do they hold money for “escrow”?
- Escrow / bond / holdbacks How much, what it can be used for, and when it is returned (must be within 45 days of termination under the Truth-in-Leasing rules).
- Insurance verification Ask for the current certificate of insurance showing you and your truck are listed / scheduled. Verify it yourself on FMCSA L&I. Confirm what happens to coverage the day you leave.
- Termination terms How much notice do you need to give? Any early-exit penalties? Do they keep escrow or unpaid settlements if you leave?
- Can I still run my own MC / authority in parallel? Some carriers forbid this or claim exclusive use. Since you specifically want your non-CDL MC to mature, this is critical. Get it in writing.
- What happens if their authority is suspended or they lose insurance? You stop immediately and they still owe you for completed loads.
- Rate confirmation access You have the right to see the actual rate confirmation when paid a percentage of revenue.
Critical Things to Know / Do Before It’s Too Late
- Get everything in a written lease that complies with 49 CFR Part 376 (Truth-in-Leasing). Verbal promises mean nothing.
- Run the carrier hard on SAFER / Motus / L&I: safety rating, insurance status, out-of-service history, age of authority, number of power units vs. reported activity.
- Talk to current and former leased operators of that company (not just the ones they introduce you to).
- Never give them title or full control of your truck.
- Your non-CDL MC stays yours. Leasing on does not transfer or cancel it, but some carriers try to discourage you from using it.
- Insurance is the biggest risk. While leased on, you operate under their authority and insurance. The day you leave, that coverage ends. Make sure your own policy is ready to activate.
- Keep your own records of every rate confirmation, settlement, and deduction.
- Watch for these common traps:
- High “admin” or “dispatch” fees that kill the percentage
- Forced use of their fuel card or factoring at marked-up rates
- Vague deduction language
- Long notice periods or automatic renewal
- Claims that you cannot run your own authority at the same time
Bottom line for your situation
Because you already have (or are building) your own non-CDL MC, treat the lease-on as a temporary bridge only. The cleaner and shorter the agreement, the better. If they push hard for long-term exclusive control, high fees, or refuse to let you keep operating your own authority in the background, walk away.