Best company for lease purchase

Discussion in 'Lease Purchase Trucking Forum' started by jrf7, Sep 21, 2010.

  1. G/MAN

    G/MAN Road Train Member

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    Age is not that much of a factor in this business. In fact, older drivers are often more sought after due to their work ethic. As long as you can pass a DOT physical and have a clean work and driving history you should not have a problem working in trucking.
     
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  3. jrf7

    jrf7 Bobtail Member

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    Thanks for the advice. Good point.
     
  4. lazyo

    lazyo Bobtail Member

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    Oct 17, 2010
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    but is there a LP out there to make payments and put 1000 a week in the bank
     
  5. amsn

    amsn Light Load Member

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    i used to work for dart transit out of egan mn what i liked about there leases was the truck is leased 2 u so you can give the bank dart got you leased thu ten % and take your trk with you if u quit and the payments arent to bad either it didnt work out for me but i have a couple friends that are still over there that are doing very well hope it helps
     
  6. G/MAN

    G/MAN Road Train Member

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    Most of those with whom I have spoken are not making $1,000/week after expenses. In fact, most of those that I have talked with would make more as a company driver rather than leasing a truck.

    Part of the problem are all the extra deductions that these companies charge to the driver. The second thing is the rate that most of them pay lease operators. You can earn $1,000/week as a company driver. If your goal is to earn $1,000/week then I would suggest that you stay a company driver and not have all the extra responsibilities that you will have as a lease driver or owner operator.

    If you save your money, clean up your credit you should find a decent truck that you can purchase that has a monthly payment of around $500/month. If you want to either shorten the time to pay it off or get a truck with more bells and whistles you could pay a little more. Even if you paid $1,000/month you would be way ahead of the game and put more money in your pocket. Finding your own truck and financing would also afford you the opportunity to move your truck or find a carrier that will pay you a higher rate if you so choose.
     
  7. G/MAN

    G/MAN Road Train Member

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    One other thing to keep in mind when you look at these fleece purchase programs. Most are set up on a weekly deduction from your settlements. If you take a week off your payments continue. If you are paying $900/week, then you will need to pay $1,800 after taking a week off since you will have not had any income for the week you took off. In talking with some who have done these programs, this is where some start to lose their shirts. Once you get behind it is very difficult to catch up. When you obligate yourself for such a high payment, you cannot afford to take any time off due to the large payment.

    To give you an idea of what you will have left I will cite an example. Lets assume that you will average 2,500 miles per week. This is a realistic number as an annual average for miles run for the year. I calculate fuel mileage a 5 mpg. You might get a little more, but it is easy to calculate. At 5 mpg you will need to buy 500 gallons of fuel to run 2,500 miles. At $3/gallon you will pay $1,500 for fuel to run 2,500 miles. If you are paying $900/week for your lease that comes to $2,400 in expenses. That doesn't include any breakdowns, tires, oil changes, etc., If you are being paid $0.92/mile plus fuel surcharge, lets assume your fsc is $0.29/mile, you will have total gross revenue of $2,300 for mileage + $725 for fsc = $3,125 total revenue. So, $3,125 (revenue) - $2,400 (fuel & lease) = $625/week. Keep in mind that the ONLY costs that have been taken out of your revenue stream is fuel and lease payment. I change my oil at 15,000 miles. Oil changes can run $200-350. I found one the other day for $169 plus tax. Tires can run from $300-500 each. The way I calculate the oil changes comes out to about $0.025/mile. Tires I calculate at $0.05/mile. If you factor these two costs into your revenue then that comes to $62.50/week for oil changes and $125/week for tire wear. If you add these items to your costs then that leaves you with $625 - $62.50 (oil changes) - $125 (tires) = $437.50. You still have insurance and other expenses to consider. This also assumes that you will average 2,500 miles each week. 2,500 is realistic for the year, but your actual miles during slow times of the year could be less. The figures that I have given you are for best scenario.
     
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  8. BigBadBill

    BigBadBill Bullishly Optimistic

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    Don't worry about your age. if you have a clean background your age will work to your benefit. Not as much when you are new but starting to see more adds that will take less experience for older drivers.
     
  9. MysticHZ

    MysticHZ Road Train Member

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    My lease is $515 ... Insurance/Qualcom/tags/Ezpass $126.75 ... I'm running 6.8mpg so fuel is $1102.94 ... Total costs are $1744.69 less maintenance.

    I get $.92 on loaded miles plus FSC and $.81 for all empty miles. Empty accounts for 5% of my miles ... so gross revenues are $2975 on 2500 miles, using the $3 for fuel and $.29 FSC.

    Net $1230.31 ... I put $.10 mile aside right now for maintenance reserve so less $250 net before taxes is $980.

    My actual average is $924 .. given the vageries of high mileage weeks vs low mileage weeks and when and where fuel purchases take place the actual week to week can swing as much as 40% around the average.

    Some company leases are better than others, some companies are better then others. A primary key to success is managing cash flow and smoothing out the up and downs - which is true of any business. It also means knowing where cash is going and why.

    Most lease operators fail for no other reason than the simple fact that over 80% of all start businesses fail in the first year. Lease operators are no different, except when they fail instread of looking at themselves, they find it easier to blame the company.
     
  10. BigBadBill

    BigBadBill Bullishly Optimistic

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  11. canuck in da truck

    canuck in da truck Road Train Member

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    hy heart goes out to you mystic---924 before taxes and health care--soo maybe 550 a week?
    whats the benifit at being a lease op at that rate?
    i am not tryiing to be a dick or anything--just trying to justify it in case i go that route
     
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