What's out there for a new guy?

Just wanted to inform SFI does allow drivers to take their trucks and to lease on to a company of their choice for a $5k transfer fee

 

To OP, i would like to just say everyones advice here resonates and is useful. Take whatever you can from it, whether it is constructive criticism or positive feedback. Ultimately, if u wanna be your own boss, only you will be able to and have to make the decisions. Good luck man.

ive never leased with anyone so i dont have experience with that. I went independent from the start.

 

I think the OP takes things a little to personally... Instead of taking the questions people have asked him as what they are (people trying to get a feel for how well prepared for the OO world he is, so they can give him the appropriate level of advise) he gets defensive and blows a gasket.

So if he gets so bent out of shape over a few questions... Hows he going to handle it when he is faced with a $40k bill for an engine replacement? Or $20k for a complete set of new tires for the truck and trailer? Or how about when some POS broker stiffs him for several thousand dollars for loads he delivered months ago? Or when he is faced with a claim for several hundred thousand dollars for "damaged frieght" that was probably damaged before it even entered his posession?

I'm not so sure he is ready for the realities of trucking... Just my $0.02

 

Most lease-on carriers require at least one year of experience. Most commercial financing companies require two or a hefty down-payment.

I would try to get started with the least amount of capital put down as possible so you're not dumping your entire savings into a start-up venture. Starting out in insolvency right off the bat is never a good idea for any business so I would find a lease deal with a minimum down-payment rather than trying to finance a truck and end up in an upside down loan right off the bat.

At SFI I know one guy leasing there and their 2019 or 2020 (can't remember which he has) Cascadia Premiums are 221" wheel base, 2.28 ratio, 400hp. $800 a week for 140 weeks. They have a $42K buyout. So you're paying roughly $154,000 for a $115K truck at the time you started the lease, which is equivalent to a ~20% interest 3 year loan on the truck. But the down-payments are as little as nothing to $5,500 (which I believe is to cover the break of lease contract fee for high risk leasees). As long as you have a carrier letter agreeing to sign you they will lease you a truck. Your CDL experience and credit score will determine the down-payment.

I don't know anything about TEL lease.

At Lone-Mountain, they require an actual credit check and go by that I think unlike SFI where if you have a carrier promise to hire letter they'll give you a truck. Their 2022 Cascadias run about $160K brand new on Truck Paper I've seen. They want $20,500 down and $2,695 a month for 60 months. That's the equivalent of about a 5% loan with financing.

Obviously a much better deal than SFI in the long run but if you have the money to put down on a Lone Mountain Truck, I'd personally put that down on a used 2015-2017 Cascadia instead and have your payments and term cut in half. But only if that $20,500 isn't all you have.

I'd personally recommend a no money down walk away lease-purchase with a carrier. Get your feet wet in trip planning, fuel routing, IFTA tracking, dealing with maintenance and breakdowns on your own, etc. Get a year's worth of financial reports and tax filings and then you have a better idea on how to operate a business and have a history of income for your business to get you started in purchasing your own truck. It's what I did. It'll also really help humble yourself hauling $1.50-1.70 freight after your fuel surcharge and then once you get on your own and start hauling $2+ freight you'll realize how little of an increase it really is and won't go out and blow it and sink your business.

 

I’m leasing from SFI they only charge $5500 if you lease on to an outside carrier and that’s for a used truck a new truck is double if you lease on to Schneider it’s 0-500 for a used truck depending on the truck’s age and it’s mileage a new truck is $1500 if you go to Landstar it’s $1500 used and $3000 brand new. If you choose to transfer companies at any time it’s an additional 3k-5k transfer fee. SFI does run your credit and it will show on your credit report. You actually have to pass the application and phone interview before you’ll get approved they won’t ask for proof of a carrier agreeing to hire you until you get approved then they’ll want a letter of intent. They require 1 yr of OTR experience. But all of this is mute because of the shortage they’re no longer leasing to anyone that’s not Leasing on Schneider or Landstar used trucks are going by so quick if your admin isn’t constantly checking for trucks you’ll miss out thankfully my admin was on it and was able to get me a truck that fit my requirements 5 used trucks became available within 2 hrs all were reserved that’s how quick trucks are going I had to wire him the deposit within 24hrs. If you want a brand new truck there’s a minimum 6 wk wait be prepared for that time to be extended at least once. After you send the deposit and the truck is reserved they’ll tell you where the truck is you’ll have fly out on your own dime. If you lease on to Schneider they’ll put you in a hotel plus take care of transportation to orientation. Yes you have to do a orientation plus a road and backing test before they’ll even let you test drive your own truck they’ll let you walk around start her up and inspect her but until you pass those tests you won’t be allowed to drive her I believe orientation is 3-5 days they’ll teach you how to work the QC, how to work and book loads on their load board from there you’ll have the option to start running loads or you can go home completely up to you as you’re now your own boss.

 

Thanks for the information. I was in touch with them around the beginning of the year and they wanted $3,500 down for a 2019 T680 and $7,500 down for a brand new Cascadia Premium. This was for an outside carrier. I never asked about different down-payments for different carriers so I didn't know that. The buddy I know of that does lease with SFI told me they wanted a $500 transfer fee and $1,000 additional deposit to sign onto Mercer.

 

I think they have a deal with Landstar and Mercer so if you transfer to them the transfer fee is a lot less. 7500 for a brand new premium isn’t bad at all especially taking it to an outside carrier I was quoted 10k for a brand new truck leasing on to F2F that includes a transfer fee not sure how much of it was the transfer fee. I’m thinking about not going to F2F but a different company so hopefully the transfer fee will go down I doubt it but it’s nice to hope lol

 

What if you have your own authority and 3 or 4 direct shippers that will give you their loads? Why would I want to sign on with Landstar, Schneider or USA Truck and screw myself with the lower rates?