Taking over the lease of Freightliner Tandem Axle truck?

Based on what you put there, it doesn't sound like a horrible deal, but you also have to figure tires, engine overhaul, truck maintenance, taxes, etc. You probably won't have to pay a whole lot more insurance assuming you have a clean record. Fuel costs can be lessened with a fuel card.

Using your figures above
$50,000/$21hr =2380 hours or about 46 hours a week.
46 hours a week x $55 an hour =$2,530/wk or $131,560/year
$131,560 fuel, lease and insurance as stated above=$102,360.
Out of that, you still need a maintenance reserve, tires, taxes, plates, permits, etc.
Sounds like you might make a little more, but more than likely you would make about the same the first year, possibly a little more depending on how things come out.
The real question is.....do you want to work for someone else, or for your self?

 

That would help you a lot. At least you can forcast your maintenance costs a little better.
Bottom line, you can, and should, plan all you can, but the numbers will change when the rubber hits the road.
Good Luck!

 

What the boss is looking at is if freight slows, you make the lease payments, whether you are running or not. He also doesn't have to pay your personal insurance, vacations, holiday and sick pay, and any payroll taxes or workers comp (if applicaple in Canada).

I have leased Ryder trucks before for several monthsat a time. They usually have a mileage charge for every mile run, check into that.

Ryder will also charge you for everything when the truck is turned in, including chipped windshields, scratches and dents, and anything else that is different than when originally leased.

There probably is an early termination fee in the lease that could cost quite a bit if things go bad and you have to bail out.

I would be suspicious that he may see freight slowing and is trying to shift some expences, or he could be OK and trying to help you. I lean toward the expence shifting. Why would he take money out of his pocket to give to someone else.

 

Definitely have him provide you with invoices of previous sales, preferably something like 2 weeks in January, April, August, November, to get a feel for the annual average. The annual lease cost can be decieving if there is a slump mid season. Also, definitely have Ryder sign off on any damage prior to signing as someone else mentioned. Have you already been pre-approved by Ryder to take the lease? By the looks of his lease cost, he is not including the maintenace per kilometer rate. You will only need WSIB insurance if you hire people to work for you. As far as his insurance, is that cargo/liability or is that your normal road going insurance? Usually ryder includes insurance and plates in the monthly payment, so you should be ok there. Are you dealing with Ryder Kipling?

 

There are some tax-deductable benefit plans available that are tailor made for self employed individuals. Drop me a pm if you ever want to go over some of the details of Ryder leases; I work in Etobicoke.

 

I believe that I would still stay as a company driver.There are too many things that can go wrong. You will always have your paycheck working as a driver,there where you are now or at another job. If you really think it over,if you are just leasing that truck,and you end up with a balloon payment at the end it isn't worth it unless you own it in the end. At that lease rate you could buy your own truck of choice and actually own it in the end. Fuel is a killer these days,would you get a good surcharge and get all of the fuel surcharge,if you get the fuel for like 1.24 a gallon after surcharge that would help alot.I think your wife will miss the security of having the benifits also,vacations,alot more worries and if you get behind or get sick you are in trouble,you can't stick another driver in the truck and pay for it and pay your bills,you need to pay alot more for insurance and workmens comp for you,and if you had to use another driver that would cost you about 3000.00 more for workmens comp. If you go for it,be sure not to put your house in jeoputy if it didn't work out for you,you also need to get all the insurance to cover you in a vehicle accident lawsuit over which is required,cargo insurance,bobtail insurance etc,taxes on income kill you,in USA social security costs double if you are self employed,don't know about canada. Best of luck to you. I have had three trucks of my own thru the years,one owner finance and two leases,on the leases ,if and when you get behind,you will be trying to make a 7 day week into a magical 8 day week,you will be stuck out working and not be able to afford to take time off with your family,unless she can go with you in the truck. I have lived it all,if it goes perfect and you are really lucky you can make it,if not it turns into a real nightmare. Be sure to figure every penny if you do it.I hope I have helped you.