Leasing under someone's authority.

Are they paying him 15% or 85%....I could understand them holding 15% and paying him 85%...but 15% to him is not good at all.

Each company a little different, but usually company will finance the plates/permit cost at no interest over a period of time up to 12 months. Some only finance it over say 18-weeks.

Cousin needs to ask a lot of questions and suggest talking to some of the current drivers there for input and appraisal.

 

Biweekly and charging for which insurance?????. I see some red flags but he needs to see some settlements or rate confirmations. I can't think of many Otr companies paying bi-weekly for one. And 85% of what? He needs to talk to some drivers

 

Whos gonna look for loads?

 

That is fair. He needs to get confirmations in his email inbox before he pulls any loads though.
With their trailer more then fair, IMHO

 

That deal sounds about right. Everyone who leases on pays for their own insurance and plates are not a big deal. Sounds better then Landstar

 

yes they pay for there own bobtail insurance but company pays the liability and cargo insurance any company that makes you pay that is ripping the driver off.

I pay my drivers 80% which out of my 20% i pay the brokers 3% to use there quickpay option
drivers pay there base plates ill finance them if i register there trucks in my state otherwise they are free to pay for there's in there home state.'
they pay there own 2290
they pay bobtail insurance and i pay all other insurance as required by federal law
they make 20% i make 17% and they never sit

I dont claim to offer the best deal but it certainly isnt the worst either but its fair

 

85% of the gross or 99% does depends on the rate for the freight,,If he is running his own and finding his own loads paying a 15% fee to use someone elses authority is fair,,
A truck needs 100-140,000 miles a year for a driver owner to make more than what a good company pays employee drivers but the truck needs to earn $1.65/mile or more for all miles loaded or empty,,any thing less and the truck owner is loosing money.

click the link to see ATRI's cost of operations report

The American Transportation Research Institute has been engaged in critical transportation studies and operational tests since 1954

http://atri-online.org/2014/09/24/3708/

 

Seems like a pretty good deal to me, 85% of gross and pulling their trailer. Of course it depends rate average.