Using a Ryder Truck Leasing to expand your trucking fleet is very popular. Trucking companies build their empire in partnership with Ryder Truck Leasing.
Not just Ryder Truck Leasing but also other big truck lease companies such as Penske gained a lot of popularity among trucking companies.
Continually, there are some pretty obvious reasons for that. That happened simply because those companies are very good at what they do.
Over the years, the profit in the trucking industry is going down and it is now more competitive than ever.
For that reason, a transition has happened and focus switched from equipment to provide a better service.
Moreover, the equipment is taken for granted and if you want to have a one-stop shop for all of your equipment needs, truck lease companies seem as the perfect ones.
Continually, they comply with the following:
- Better Business Bureau (BBB)
- Transportation Security Administration (TSA)
- Bureau of Labor Statistics (BLS)
- Department of Motor Vehicles (DMV)
What is Ryder Truck Leasing?
Ryder is a company considered as one of the market leaders in the US when it comes to truck lease, sales, and rental business.
Incorporated in 1933 in Miami, Florida and having more than 33.000 employees indicates one of the giants of the US economy and one of the brightest stars of US trucking industry.
With $5B of annual revenue and more than 40.000 vehicles in their fleet Ryder portrays a rock-solid foundation in building a successful trucking business.
Now that you got the idea what is Ryder and how big they are, I’d like to go into more details about their truck lease and rental program that most of the trucking (especially long haul) companies are using.
When you start thinking about leasing a truck from Ryder, in most cases trucking companies operating long-haul semi-trucks (class 8 trucks) will think about getting a brand new or almost a brand new 18-wheeler truck in exchange for certain monthly payment.
And that is correct, this is exactly what Ryder is doing. They will offer you a brand new Freightliner Cascadia or Volvo at competitive monthly payment with in most cases maintenance and warranty (extended sometimes) included.
So basically, you’ll get a brand new truck, brand new, with maintenance plan included and warranty covered.
This way you can calculate your monthly costs in the future and focus only on finding good loads and good truck drivers.
Everything sounds great. And it is, but sometimes it is not.
Therefore, read carefully the next few paragraphs and learn what you can expect and how to prepare for the situations that might drive you crazy sometimes.
What are Ryder Truck Leasing Rates?
Rates as in everything you see in trucking industry can vary. There is no simple answer for this. But let me share my experience and this could generally be your guide in terms of what to expect.
This includes the full warranty as all brand new trucks come with it anyway.
On top of that cost, you can add your maintenance plan and sometimes, there is some maintenance plan even included in this price.
But this price is only for the truck (tractor) and the trailer is not included in this. Add around $550 – $600 monthly for the trailer and you just passed $3k.
But this is just the orientation. Depending on a truck cabin, the mentioned prices can vary.
For instance, for the engine configuration, equipment, leasing duration, maintenance plan (is it full or partial) and the number of units you want to lease.
Use this number just to determine is this something your trucking company can afford to pay or not.
What is the Real Ryder Truck Leasing Cost?
Yes, sometimes the real and advertised cost can be different. Not just sometimes, I’d say in most of the cases.
So, it is very important to ask what is the total cost and what has included the monthly payment fee that is advertised.
Some of the costs that are not included in monthly payment fee can be these:
- down payment required for every truck
- approval fee or agent fees
- certain insurance fees and expenses
- closing fees
- additional vehicle equipment
By summing up all the costs mentioned above, we are getting the real cost of the Ryder truck leasing.
That cost as you can imagine is higher than just the vehicle monthly lease fees. It is worth mentioning that in some situations you can negotiate the price of the lease or the entire package.
If your trucking business and/or personal credit score is OK there is a big chance you can negotiate the truck lease even without any down payment required.
In some cases, they will ask for some down payment because you are a new customer for them.
Also, you might face a limit in a maximum number of trucks allowed to lease.
This is also usually set for new customers for the first year only.
Check For All Hidden Fees
One of the tricks sometimes used by truck lease companies and Ryder is not different. Actually, when talking about this I need to be honest that Ryder is really a great company.
But sometimes sales reps have a strong wish to sell and reach their monthly/quarterly plans and create a situation where they over-promise something.
Simply pushing too hard and trying to sell at all cost is not something Ryder trained them to do. But still, some sales reps are quite aggressive and try to do it on their own.
Again, like in the previous section, ask. Asking questions in advance is a must do here. Because some creativity from the Ryder sales rep could cost you thousands of dollars.
Carefully go Through all the Warranty Details
In the last 10 years, the trucks are packed with technology and it is getting more advanced. Notably, it is becoming mandatory to have a full coverage warranty.
A lot of trucking companies also get an extended the warranty that covers extra 2 years (5 in total) of the warranty period.
But I’d like to warn all of you who are entering into deals like this for the first time that things are not always as you think and as they look like at the beginning.
Now, you ask yourself how, and why?! Truck dealerships and manufacturers developed a unique approach to this and try to avoid covering claiming that malfunctioning happened due to regular everyday usage.
But there is more than this. If the truck gets stopped in the middle of nowhere and it is not possible to drive it anymore, of course, you need to call the towing service.
But warranty will not cover for that, they will cover for repair but not for the towing.
As we all know the towing prices this could easily need as few thousands of dollars expense that no one will cover for you. Pay attention to these details and ask what is covered under warranty.
Because sometimes a $1000 problem can require $5000 towing that is not covered.
Maintenance Plan Hides a Lot of Hidden Costs
As one of the biggest expenses maintenance is a thing where a lot of trucking and truck leasing companies like to take shortcuts.
Reducing the quality of maintenance seems like a good way to reduce overall company expenses. This is a part where Ryder is really good.
They will perform all manufacturer required service checks and parts replacements.
They will not take any shortcuts and everything will be done at the highest possible level.
However, sometimes there is a risk of getting charged for some parts and services that are covered by a maintenance plan.
I don’t know whether it is a human error from the people working at the repair shop but sometimes people get charged for some stuff that is supposed to be free.
Always pay attention to the monthly bills, invoices, and statements coming from Ryder because if you have a fleet of 10 trucks leased or rented from Ryder truck leasing it is very easy to overlook on certain items and get over charged.
At the begging, they all say that everything you can imagine is covered with warranty and included in maintenance plan but believe me, keep your eyes wide open.
Try to Avoid ACH Payments
This is some sort of hack or we could call it a secret tip and trick. Every month (or bi-weekly) Ryder will send you the invoice for the truck leasing and they will do an automatic money withdrawal from your company bank account.
Try avoiding a situation like this where they automatically withdraw money from your bank account without asking you for anything.
There are reasons why I’m telling you to try to negotiate that you send them the check every month instead of them withdrawing money from your account.
The reason is that as mentioned before you will have a situation (almost every month you can experience this) where someone will make a mistake and over charge you a lot for something that should be included in your monthly payment.
When this happens and you notice that for example $4.000 was deducted from your company account, you will start calling Ryder billing department.
You actually started playing games with them or actually they play games with you. Their billing departments are usually located in a completely different city that customer and sales department.
There will be no one to help you solve the problem. It will take weeks before you get the money back and there is a chance you won’t get a full refund at all.
But if they don’t deduct the money (you agreed to send the check) before, then you have a negotiating power.
Simply refuse to pay the monthly truck leasing payment before they sort out the mistake someone from their office made.
This way you will experience how problems can be solved within few hours instead of few weeks.
Always Ask For Written Proposal and Offer
One of the most important rules to know. Sales representatives by nature and goal oriented people that have a huge desire for success.
And that is good. That makes them successful, allows them to make high bonuses and salaries and at the end company makes a lot of revenue because of that.
Unfortunately, sometimes there is a situation that they have such a huge wish to sell you something and to close a deal that they over promise and sell you thing that doesn’t exist or they sell something that is not true.
Simply they will say that the price you see will get you a lot more than it will.
This is a big problem when you sign a deal (without taking a detailed look at it) and discover that some of the things you find so cool don’t exist or require additional payments.
Once you signed it, there is very little you can do. Be very careful with this and always ask for written proposal and offer with described the proposal content.
Check What is the Cost If you Want to Stop Using Ryder Truck Leasing
Running a business in these challenging economic times is never an easy task. It is not easy to predict all the events over the next 5 years and sometimes we need to create or have a plan B just in case things don’t develop and evolve the way we want it.
Multiple reasons for that could be:
- dedicated truckloads contract get canceled or not renewed
- there is a partner split
- dispatch department start performing poorly
- load prices and profit goes down
Yes, a lot of things we don’t expect can happen and it is good to know if suddenly you have 5 trucks you don’t need anymore how to get them back and cancel the Ryder truck leasing contract.
Sometimes it can be very expensive and long-lasting procedure so it is good to check that before signing a contract for multiple years in advance.
Try to negotiate this clause because truck lease companies want their equipment back as soon as they can if they feel that there is the risk of not paying their services.
Generally speaking getting a Ryder Truck Leasing is a great move.
In this article, I just wanted to warn you to pay attention to few details. The above-mentioned details will be easily overlooked and cause a lot of problems.
I know people don’t like to read about potential downs of the business and everybody like to read about ups only.
But, being prepared when the problems arrive is the only way to stay in the business. So, use these tips and tricks I paid very expensive to prevent yourself from paying for it.
It is much cheaper if you learn from my mistakes.