Get paid .92cpm or a percentage?

OK Dick... You want numbers? I'll show you numbers. Unfortunatly, I do not have the equipment needed to scan my P & L statement, so your just going to have to live with numbers.

Now remember. I do not work off a mileage program. I get paid 75% of gross revenue. It doesn't matter if I deadhead 1 mile or 1000 miles.... I still get 75% of the gross revenue.

And like you, I am in a lease purchase as well. Not only on the tractor, but on the trailer also. The only difference is I have the authority to take this truck from carrier to carrier to carrier. You do not have that freedom.

Now I'm not saying your costs will be the same as mine, but you should have a similiar line of costs. The only thing you won't have is depreciation... And the only reason why I have it is because of the 379 I lost back in May. My depreciation value hasn't changes since then.

Now I still have to pay income taxes!

 

Dick,

I know for a fact CPAPE would do anything to support his family even if it meant going to work for Walmart. However, from the posts CPAPE has made, It appears he has wealth of knowledge about the trucking industry and would avoid it. No one is belittling you at all for going L/O option at Swift. What the others are saying is that they do not want to see you fail. Good luck with the L/O plan.

KH

 

Les: We can split hairs on differences, but, really, where would that get us? I do have an investment in my truck. Yes, the deal was done through IEL. However, I did put something up: my good name and the reputation of Taiowa. That really does mean something to me.

I could have gone for something a lot cheaper, I suppose. But I would not have a decent warranty to fall back on that does actually cover towing. Not that I plan on using it because this is a good truck and I am a stickler about PMs and maintenance. I believe that if a thing is maintained, it will not need to be replaced.

Someone mentioned earlier about a breakdown or a claim ruining a person. That's true-if you have purchased somebody else's problem and the selling agent was able to mask it well enough to get it out the door. That's what happened to me. There was a reserve maintenance fund at the outset. It was eaten up in short order by two turbo replacements, an EGR, a cracked head and a head gasket. Then the exhaust manifold had to be replaced. Then the air intake pipe. The last straw was an air conditioning system that needed a complete rebuild from the compressor to the under dash fan. I was then ruined and had to start over.

My way to start over was the only option I had. I went lease for Prime. It was a miscalculation, but I stuck it out for almost two years before I threw my hands up and said enough was enough. So I came back to Swift.

So here's the deal: as of right this minute, I have over 10K invested in this truck. If you include the modifications that have been done, that figure climbs to nearly 15K. I have over 3K set aside for maintenance and emergencies. I set by 10cpm for this purpose with the intention of continuing this practice through the term of the lease. Minus tires and PMs, this will give me well over 30K at the lease end. About half of this is slated to be a 50% down payment on financing for the residual. I will basically be buying a three year old used truck for about the same as you would pay on the open market.

In the mean time, you betcha I'll use Swift as a backer. They have a lot more pull in this industry than Taiowa does. I don't have to worry about an accident or cargo claim ruining me. Or a breakdown, for that matter. I have the option of forbearing the payments and chipping away at them a hundred bucks at a time. I'd like to see your bank do that.

My fuel economy more than makes up the difference between a $350/week payment and my $525. I'm consistently getting between 7.5 and 8 mpg with some weeks as high as 9. With my previous experience, I didn't think it was possible. My fuel surcharge fluctuates with the prices. The higher the fuel price and thus my surcharge, the more money I make. At first glance, that doesn't seem to make sense, but I'll explain it this way: fuel surcharge is set up at 6 mpg. If I get less than 6, I will pay more above surcharge as prices rise. If I get better than 6mpg, my price per gallon of fuel goes down when prices and surcharge rise. I'll do the math and show my work later.

Have to go for now.

 

Injun--you are dead on about the possibility of making money on fuel surcharge revenue. Keep up the good work.