Leased to a company

**BoyWander** · 08.06.2012

I don't understand how a lot of you complain about seeing low rates from brokers, laughing at a load that pays $1.50 a mile, when I look at these offers by carriers wanting O/Os to lease to their company for 90 cents per mile + FSC.

FSC is like 50-60 cents right now, so it's like everything you run is $1.40-$1.50 a mile. You get small fuel discounts with some of the large carriers, like 15 cents per gallon, and then you can save a little bit with discounts on tires, and I'm sure you can save a little bit on insurance and plates and permits, but still, that should not add up to more than 5-6 cents per mile savings. Even at 10 cents per mile savings, you're still looking at profiting $1,500 a week on a good week, and just hoping your truck doesn't break down.

I really doubt I would go out and buy my own truck if I couldn't profit at least $2,000 a week to myself, aside from a maintenance fund and every other expense.

So am I missing something, or is leasing to a company pretty much as I described?

**dannythetrucker** · 08.06.2012

It's gotta be about how you describe. I mean these guys are making enough to put fuel in the truck and being told to squeeze out a few extra cents per mile with fuel economy or told they're getting a good deal because they can get tire discounts or something. It's a racket, cheaper for the company to pay them 90cents/mile than to keep a driver in a company truck.

**lonelyswmtrucker** · 08.06.2012

anybody who has a truck right now & not getting @ least $3.25 a mile plus a nice fsc isn't going to make it.

**Polarbear857** · 08.06.2012

I wouldn't say they wont make it but theyre not using the brain God gave them. I never accept a load that doesnt pay at least 2.25 a mile. And if its a short run like up here in the northeast, then 3.50 to 4.00 a mile.

**BossOutlaw88** · 08.06.2012

What advice can you give me on leasing to a company? I work for Schneider and thinking about going owner-op.

**BoyWander** · 08.06.2012

I was actually looking at Schneider's website at their O/O package.

92 cpm and then fuel surcharge, which I don't know if it's 60cpm or 35cpm. I guess there are 2 different standards that are used.

I drive for an owner op leased to a carrier with 750 trucks, on a 3,400 mile dedicated round trip, I don't know where he makes his profit after he pays me and the fuel, but the fuel only costs like $2,050 a week, it's a very light load. Empty automotive containers going down, and about 5,000lbs coming back. Still, after my $1,100, $2,050 in fuel, and then his truck and insurance and etc. which is probably about $350 together I'm guessing, since it's an 07 with almost 700k miles and he said he bought it for $37k, that's $3,500 right there, plus maintenance, we'll add another $300 a week, that's $3,800.
It pays 3,300 miles (although it's really 3,430 miles, no empty miles), that's $1.15 a mile, which is not bad considering what I'm paid. And I think $3,800 is on the low end, it may cost $4,000 to run it.

I can't imagine he's making more than $1.40/mi all together, and if that's accurate, then he's making about $600-$800 profit max.

I'm not sure I would do this run in my own truck for less than $2,000 profit.

So what it's coming down to, I guess, is knowing how much fuel your truck will use for any given load. If it's 44,000lbs, you should have a really good idea on what kind of fuel mileage you're going to get on it, and combine that with how much fuel will cost on your way down.

On this run I'm doing, last week I got fuel in Terre Haute for $3.61, then Edna, TX for $3.69, then Texarkana for $3.74, then Terre Haute again for $3.67 (it went up). If I go through Tennessee, I'd get the fuel in Jackson, and it's cheaper in Tenn as well. So Tennessee, Indiana, and southern Texas (South of Houston, before Edinburg).

If I got fuel in Michigan, it would have been dang near $4 a gallon.

So I guess the idea is to have a really good idea on your fuel expenses for any certain load, weight, terrain, etc. And I guess the bad thing with leasing and NOT on a dedicated run, is that your fuel usage will vary, and there will not be any more compensation from one load to the next.

So yeah, I'm wondering how these O/O leased to a company are making it and getting paid what it's worth to own the truck.

**rollin coal** · 08.06.2012

The owner you are driving for is not making any profit at all. He's going in the hole. Even if the truck is paid for. If he broke down a true cost to roll he would know that, surely he knows it in his gut if he's being honest with himself, likely he doesn't even know how to figure it. Does he 1099 you?

**BoyWander** · 08.06.2012

Yes he 1099's me. I'm happy with it so far.

He doesn't sound like a stupid guy, he's got to be making at least some kind of profit.

The load has to be paying at least $4,000 for the round trip, and even at that low rate, he's going to be making at least a little bit of profit.

I'm guessing even if the carrier is making a mere $2/mi on the round trip, and spending $4,000, they are making big money. They would still be making good money if they had paid $4,500 or even $5,000.

If I ever go independent one day, I'm going to try sooooo hard to get my own customer paying $2.50 a mile, then I could find a backhaul on a loadboard that would average me out over $2/mi.

I think if I ever get my own truck, I'd just go ahead and go full monte and get my own authority and do it myself, rather than lease onto a company.

**BoyWander** · 08.06.2012

Well I happened to find out from my boss that he gets $3,800 for the round trip from MI to Mexican border and back. 3,400 miles and he gets $3,400 + $400 fuel surcharge.

Fuel = $2,100, my pay = $1,100, = $3,200 + everything else.

What a crock of crap.

If someone offered me that, I'd laugh at them. I don't know how he does it.