I need o\o or leasing advice

I have done my homework on lease-purchase and I can say I think you can make money doing it if you are very business savvy. Now in saying this if you are business savvy you are more than likely going to buy your own truck and not go through a company program. MONEY is the factor in all of this. I have ready that on .95 a mile it will be very hard to come out even. Read around drivers some say 1.50 a mile is kind of low. In my opinion save up for a down payment then buy a truck. If your credit is in the hole then save up to pay off your creditors and then save for a down payment or do both. In business you need a good credit score its good business to have a solid credit score. If you are hard pressed to take the time to save your penny's to do these things I will have to say a lease program will be a disaster for you as your will not be prepared.

Advice I have been given that I will pass to you. Since your a company driver start saving receipts and such and see how much everything is and see what you think. If you think you can do it then start preparing yourself by setting up accounts to save money for these expenses.

FAILURE TO PREPARE IS PREPARING TO FAIL!!!

 

The best advice I can give you is to take your time and think it through, and do a lot of research before making any move. IMHO it is better to be an owner/op than a lease/op, but only because you can plan ahead and buy your tractor with cash. You have tons of expenses to consider and you won't need a lease or truck payment dragging you down when you're the most vulnerable, while starting up. You also need cash banked for expenses until your pay starts coming in which can be 30-60 days after you start hauling on your own. Just some things to consider before you take the plunge. You might find you are doing better where you're at after looking at expenses vs. rates, etc.

 

You are missing a lot of the expenses. On a 0.93 CPM lease plus a 0.36 CPM FSC, you will only make 1.29 CPM. At this rate plan to run 3500 - 3800 miles per week to make the same money and cover your Cost Of Operation. Your fuel costs will be about 48% of gross due to the low pay per mile.

Read all the docked threads in the "Ask An Owner Operator" section. In addition, these are some threads full of great information:

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/146942-how-to-become-an-owner-operator.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/147854-what-would-experienced-o-o-buy.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/125507-what-estimated-operating-costs-o-o.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/148340-keeping-track-o-o-operating-costs.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/134211-no-experience-but-getting-authority.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/143100-rate-confirmation-question.html


http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/64679-my-numbers-o-o-leased-crete.html

 

Your lease payment is whats killing your figures. Save up your money and either pay cash for the truck or put down a high enough downpayment to make your payments lower. You'll need cash to pay for repairs, cash to maintain personal expenses and cash for the downpayment.

If you lease your truck from the company, you wont make enough money to make it worthwhile.

 

That's correct about the payments. Most people miss the fact that there are 4.333 weeks in a month, not that 4 * $455 = $1,820 per month isn't too high anyway. But $455 per week is $1,971.67 per month (4.333 * 455 = $1,972). I would be looking for $900 - $1,300 per month depending on a 2.5 - 4 year pay off. If you are going to run a cheap CPM lease instead of a % lease you will probably have to stretch the loan term and pay lower payments and more interest to make ends meet.

I'm not sure what other fees are. You didn't cover license, permits, insurance, maintenance escrow, fuel tax, trailer rent, workmen's comp, health ins, income tax and social security. Then there are misc cost, check fees, qualcom charges and excess mileage charges in many cases.

 

Here's my advice "DON'T DO IT" till you have a BIG cash reserve cause your gonna need it.