Well I'm up here in Linclon Nebraska terminal and this is where the lease department is and I thought I would show how bad this Lease is here



2005 Freightliner Century Lease Program (01/15/06)

12 month Lease Program for 2005 Model Year Freightliner Century:

Payments are $425.00/week X 52 weeks. $570/week X 52 weeks for team manned trucks

No Lease Deposit required. Subject to credit approval

Program participants will be charged a mileage lease charge of $0.07 per mile based on the mileage operated, which includes $0.05 per mile put into a maintenance reserve account for truck repairs and $0.02 per mile put into a general tire account for the normal ware replacement tires

Warranty for basic vehicle is 48 months or 500,000 miles. Drive train is 60 months or 750,000 miles. Some exclusion apply

$2,400 Lease completion bonus upon payment in full of all lease charges and obligations for the full lease term.

An excess mileage charge of $0.12 per mile will be collected for miles in excess of 129,000 in each consecutive 26 week period

To assist lessee in successfully managing operational and financial matters under this lease agreement, U.S. Xpress, Inc, will pay the fee for lessee with American truck tax for the 12 month lease term

Tractor must be leased to U.S. Xpress for full contract term.

Proof of monthly maintenance must be submitted to U.S. Xpress, Inc.

Tractor speed set at 70 mph

Here is an Example of weekly costs

Fixed Cost Century
Tractor payment....................... $450.00
Physical Damage Insurance ..........55.53*
Bobtail Insurance .........................15.00
Occup. Accident Insurance ..........32.77**
Satcom Rental .............................15.00
Highway Use Tax........................ 10.58
Weekly Fixed Cost................ $533.88
*Estimate only. Cost will depend on specific unit value.
**(team Cost is $32.77/per driver)
**(Statutory Worker’s Compensation coverage is required if mandated by law or regulation.)

Variable Cost
Maintenance Account $0.07 per mile
Fuel (6.5 mpg x $2.32 per gal.) $0.37 per mile (using U.S. Xpress network)
Fuel Tax $0.01 per mile

Miles...................... 2,400
Fixed ......................533.88
Lease Charge .........168.00
Fuel ........................888.00
Fuel Tax ...................24.00
Expenses ..............1,633.88
Revenue............... 2,568.00

Gross Profit $934.12
$/mile $.389

Federal taxes 186.83 (20%)
Not sure what fica will be I think somewhere around $51.30
Medicare will be about $12.00
your bottom line is going to be around $683.99

And I’m sure your probably accustomed to medical insurance and maybe even make a 401k for yourself, after its all said and done, your probably going to come out with what you will make as a company driver, and your will be paying for any and all maintenance for the truck as well.. it’s not in your favor

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There are Old Truckers and there are Bold Truckers, But there are no Old Bold Truckers.

Fuel may be $2.32 this week, but run your numbers with $3.00 per gallon and 6 miles per gallon. $0.50 per mile.

Now figure that you are only paid on HHG short miles. Your odometer will have 2,650 miles on it for the 2400 paid miles. Fuel cost is then $1325 per week.

Tractor payment....................... $450.00
Physical Damage Insurance ..........55.53*
Bobtail Insurance .........................15.00
Occup. Accident Insurance ..........32.77**
Satcom Rental .............................15.00
Highway Use Tax........................ 10.58
Weekly Fixed Cost................ $533.88
*Estimate only. Cost will depend on specific unit value.
**(team Cost is $32.77/per driver)
**(Statutory Worker’s Compensation coverage is required if mandated by law or regulation.)

Variable Cost
Maintenance Account $0.07 per mile
Fuel (6.5 mpg x $2.32 per gal.) $0.37 per mile (using U.S. Xpress network)
Fuel Tax $0.01 per mile

Miles...................... 2,400
Fixed ......................533.88
Lease Charge .........168.00
Fuel .......................1325.00
Fuel Tax ...................24.00
Expenses ..............2,070.88
Revenue............... 2,568.00

Gross Profit $497.12
$/mile $.187
Less than half of what a company driver would make.

They know what they are doing. IF it was such a good thing for the driver they and other companies that do the same WOULD NOT have to push the lease program so hard.

What I see it would be better to go and Buy your own truck, and get your own loads if you can, and leasing on to a Company as a last resort.

Just never forget this, you are paying for a truck,YOU AREN"T EVER GETTING THAT,in affect you are paying for their truck,taking great care of their truck.The best way is to get a good driving joj and save 100.00 or more a week,in 2 yrs,put 10,000 down on a truck of your choice,preferably at least a year old,saves alot of excise taxes and sales tax thru the first buyers loss,it starts depreciating as soon as it leaves the dealer,lease that truck to a company ,that gets your fuel for a set rate,while most give you a surcharge,the best deal is that company that you have a set price per gallon,like 1.24 a gallon, even with all the surcharge given back to you,its cheaper at fixed price of 1.24,then you will be in control of your business. save enough money set aside for three months of payments just in case you have to change companies with your new truck, you have to do your homework very carefully,if you get your own authority you will get more revenue, but you still pay for that load to broker,although you get more,the fuel price you pay is higher and not anywhere near 1.24,some companies pay you your tag monewy back,your road taxes,you pay it all with your own authority,unless you shop around first and check everything. NEVER LEASE A TRUCK JUST GETTING MONEY BACK<ANDERSON MOTOR FREIGHT DOES THIS<USEXPRESS AND A BUNCH OF OTHERS,pay for it yourself ,after you save up your own down payment. There is no magic!

One more thing I forgot to mention, on most leases you get about 3600.00 back a year. If you do that lease deal you make alot less net profit per week,even if you don't breakdown,you can get sick for a week or even a few days,then your payment is still due,then you can't afford to be home for a family visit,then you are forced to give up your dream of thinking your a real owner operator buying your own truck,working for yourself,your really not,then the worse things can happen,you lose your car,your house,and may even lose your wife in the end. Ask around ,there are so many young and old drivers,past and present that have had their credit ruined,by signing a lease,some have morgaged their house for training or buying a truck,and the worst thing is they are in a big hole,operating in the red almost all of the time,with little or no chance to really be an owner operator. listen to me and this will never be able to happen to you.. best of luck to all of you.

All you need do is check out these companies that have lease deals and see their inventory of used rigs for lease. The list is massive.

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Al

What would be the costs associated with leasing with intent to purchase a company-owned used vehicle, say with 4-500,000 miles on it, in the 2001-2004 category, assuming some are still in the company's inventory? Wouldn't the weekly payments be lower?

I had in mind the possibility of leasing an Argosy still in Schneider's inventory...

No you would proably end up paying way more than the Value of the Truck, the USX Lease isnt an option to buy its just a lease, Many companies like CRST for example have you Lease Purchase, with a Baloon payment at the end and some companies charge $1,000.00 or more, and if you dont pay you wont own the truck and they will continue to charge a lease payment and if you opt out then they just put that truck back on the market and charge exactly what u just paid into it to another sap

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There are Old Truckers and there are Bold Truckers, But there are no Old Bold Truckers.

When looking at "their" numbers, almost all of these companies figure fuel costs based on paid miles, and not actual miles. Figure on adding at least 10-15% onto the cost for fuel that they give you.