SHORT TERM LEASES, (6 month)

Gross

 

Never said you were a fool but you come here, ask a question and people tell you NO, don't do it which isn't what you want to hear. Below is the quote why not to by Constant Learner, he has some of the numbers, it may be worst for you because many leasing companies will not lease to new businesses because of the cost to them to lease out the equipment, this isn't construction industry but one where a lot of people go under and a lot of supplies lose money.

Well that's because I don't have a clue who you are, what your business back ground is and so on. I have advice for some who understand basics, but you don't have anything, you went through and got a CDL (which is really easy) and 6 months under your belt, so you need more drive time and talk to people, your customers are willing to talk to you and if your company isn't, then they are just the same as megas.

a year is not enough, even for a lease operator.

Sorry that's BS. I know a lot of drivers who went to becoming successful O/O by asking questions and access to the back office, many companies want their drivers (GOOD COMPANIES) to learn as much to make it easier on them. Seeing what it takes to run a safety department, knowing what it takes to figure out how to get loads and so on.

Not true, this is where your INEXPERIENCE shines through.

Not always.

See right there, this is why I say what I say. My contract rates are what many of my drivers are making good money from, the OTR contracts I have here are making a number of them on the other side of 6 digits, and the accessorial fees add up for them where it adds up.

See this is another thing, learning how to leverage dh'ing and how to find or put together return loads can make better money than does the load that takes you out. But I don't see many fleets doing this, it is just go out, come back in and not make money.

Doesn't matter if you are debt free, one good accident, you won't be.

I'm not saying they shouldn't, I am saying to hold off for a while, I and others have been saying this to others for months now, the industry is not going to be the same next year, and there will be some serious issues, we are seeing them now with the strikes slowing down a lot of tonnage, and if things break loose in the middle east, it will be even worst.

Not always, some of the biggest failures I have ever seen was from someone who had business experience, or better yet, a business degree.

This is reality, not to forget that if you get into an accident, there is also other liabilities involved.

 

To Whom it may concern....

Here's another possible angle to consider, when pondering thr idea of a business venture such as that here...

General Eisenhower reportedly is known to have said, "Hope for the best -- but plan for the WORST."

Thus -- possible worst-case scenario:

If "Mamma Cow" where you are now has most/all her current sources of "milk" sharply curtailed (or even worse) -- due to a mix of a serious near-future economic setback and/or stiffer outside competition -- do you possess the requisite business/marketing savvy to go out, & create new biz sources on your own (that are just as good -- or better)?

I think that perspective might well be worthy of thought -- as some business prognosticators think that 2024 could well prove to be a "rough ride."

As Credence Clearwater Revival once put it...."looks like we're in for nasty weather."

If your answer to the above query is not a solid, confident "yes"...then I would respectfully suggest holding off on signing any lease/purchase agreement(s)....until you feel you can produce the necessary "plan-B magic."

The above of course totally ignores all the (other) surprise "gotchas" & expen$e$ that go along with being responsible for your own equipment.

-- L

 

Being an owner op for the same company you worked for doesn't always pan out how people expect. It sounds like a solid choice, you already know the freight, the routines, the people, etc. But realistically, you are probably competing with the company drivers. If it costs less to put the load on a company truck, don't expect to get as many miles. If it costs less to put it on your truck, you're probably taking a pay cut or losing benefits. They might seem like friends and treat you like family, but in the end they are going to treat it like a business.

There's a guy who used to post here, Farmer Bob, who worked for Crete. He bought a truck and leased under them, because that was familiar to him. He basically made the same thing as an owner as he did being a company driver. He insisted on doing everything the hard way, and people went out of their way to give him all kinds of helpful advice. Crete had no incentive to help him grow, but he was stubborn and stuck with them anyway, until he died while on the road.

I did something similar with the company I started with. 9 months in, bought a truck, got my numbers, and hauled through their brokerage at 85% of the load. It didn't take long for me to realize that I was sitting around and getting the scraps. I couldn't use their trailers to get my own loads, they weren't paying for empty miles, they required 250k cargo insurance for loads that weren't anywhere near that value. When I did the math, I knew there was no way that they could run hundreds of trucks, with terminals all across the country, at the rates they were paying us. We weren't getting 85% of what the trucking company was getting, we were getting 85% of whatever the brokerage decided they should pay after siphoning money off.

There are some decent owners out there who will treat you fairly, but it's the exception. This whole industry is full of deceptive practices and shenanigans. They have little incentive to help you grow. Knowledge is power, and they only stand to lose by sharing that knowledge. That's probably why you're getting vague non-answers about why you should stay with a company for 5 years before getting a truck. In 5 years, you can come back and they will tell you to wait another 5 years.

 

The best part about starting out when it is bad you will watch your expenses and understand the fine details that need to be understood when money is tight. Starting out in the great times gets people over confident and that leads to failure when times get tough. Would rather know I can run my business when it is hard then when it is easy.

Also Business experience is way better than any degree you can get in business. Kind of goes back to that subject you think the country folk are not educated. The school of hard Knox will pay off way better than any school you go to. Very similar to when people day trade on the practice money when starting out without using real money. They tend to do pretty good because they have no skin in the game. Once they use real money they get scared and crash because they are not truly prepared.

 

Maybe try going to finding a truck you might like have it inspected got to your bank see if you can go that rout since you already wiht a company might be the way to go for one
if all fails you can take the truck with you to another comany

 

Penske or Ryder or pac lease will not long term rent to you(6 month lease is actually a long term rental). You don’t have any established business credit. Also it’s extremely expensive. The last time I rented a truck was probably close to 20 years ago. It was at that time 2500 a month and 12 cents per mile. I wouldn’t be at all surprised if it were 3500 a month and a quarter a mile now.

This is not a viable option for you. Especially if you are just wanting to dip your toes in the water.

 

When I worked for 1099 companies, they were sometimes reliant of Ryder. The first one, we were using the trailers and on occasion, trucks. Both of which are very expensive. The 2nd one used a Penske Truck temporarily because the one I was driving was broke down. You'll need a few thousand to even get in the truck. It's probably that cost every month. Heaven forbid if you blow a tire. They'll call roadside, then charge it back to you and then some. They can be some money sharks if you aren't careful. So if you go that route and you need a repair, try to go to one of their facilities. If you can't make it to their shop, pay for the repair out of pocket. You'll be cheaper that way.

Now if you do the 6 month lease purchase through your company, that can be suspicious. A 6 month lease could get you an older truck with a lot of issues, and you'll be paying for the repairs and the weekly truck note. Y'all are still pretty inexperienced, and I don't think you want those problems because going either of those routes make the profit margin more thin than it already is.

 

This is what I’m considering. I’ve heard of walk away leases and am looking for more info. Which companies do you know are recommend? I’m only planning on driving about 8 months per year and the rest I’ll be abroad.