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Lease Agreement Perks

Discussion in 'Ask An Owner Operator' started by ultraclassic, Dec 3, 2011.

  1. Dec 3, 2011 #1
    ultraclassic

    ultraclassic Light Load Member

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    Aug 4, 2011
    Oklahoma City, OK
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    A question for you O/O. When you are negotiating a lease/contract with a company what are some of the "perks" you try to put in the agreement and how do you word them? Here is the base info. He takes 15% of the load, 127.00/wk ins and what ever fuel I will use each week (he supply's fuel card). What are some things I can ask for to sweet'n the pot for me..
     
    ultraclassic, Dec 3, 2011
    ultraclassic, Dec 3, 2011
    #1
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  3. Dec 3, 2011 #2
    Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    Most lease agreements are a pre-written generic form. With a small 5 truck company, you could ask for changes, probably. I'd be interested in how pay, for instance, do you get paid even if the shipper/broker hasn't paid yet. Keep any "escrow" accounts to a bare minimum with ALL escrow funds returned to you if you quit. Discuss in length forced dispatch, even though they say they don't have it.
     
    Allow Me., Dec 3, 2011
    Allow Me., Dec 3, 2011
    #2
  4. Dec 3, 2011 #3
    BigBadBill

    BigBadBill Bullishly Optimistic

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    The "perk" is 85%. Most companies that are offering perks are taking a larger cut but somehow drivers use a pre-pass, worthless tire discount, etc as justification of only taking 65-70% of the gross.

    More important is the expensive details like when paid, escrow, how IFTA is calculated, escrow.
     
    BigBadBill, Dec 3, 2011
    BigBadBill, Dec 3, 2011
    #3
  5. Dec 3, 2011 #4
    ultraclassic

    ultraclassic Light Load Member

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    Aug 4, 2011
    Oklahoma City, OK
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    from riding with him for 5 days last week and asking a butt load of questions it breaks down pretty much like this. If I drive his truck I get 25% of what the load gross is minus taxes, he takes care of everything truck related.

    If I get a truck and lease to him he takes 15%, 20% if i use his trailer. He takes 127/week ins and whatever fuel I use. I am responsible for veh maint, permits, fuel tax, ect... (im sure you guys know the rest)

    He factors so there is no delay in pay. Paper work turned in by tuesday of each week is paid that same friday...No forced dispatch, had 2 drivers refuse to go out over the weekend. Being a previous business owner it sorta pissed me off cause when they dont work you dont make money but he said he doesnt force dispatch so he was stuck.

    I talked to several of his drivers that were on the run with us and a few have leased to him for 5+ years. Said he is a pretty stand up guy. 1 Driver lost his motor in Utah and he loaned him 15k so he could finish paying for it, not many will do that..
     
    ultraclassic, Dec 3, 2011
    ultraclassic, Dec 3, 2011
    #4
  7. Dec 3, 2011 #5
    ultraclassic

    ultraclassic Light Load Member

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    Aug 4, 2011
    Oklahoma City, OK
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    @Allow me: Not sure what escrow acct your talking about? new to the trucking industry. Can you fill me in a litle. He didnt mention one?
     
    ultraclassic, Dec 3, 2011
    ultraclassic, Dec 3, 2011
    #5
  8. Dec 3, 2011 #6
    BigBadBill

    BigBadBill Bullishly Optimistic

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    I would say start as a company driver. % pay if tough to find as a company driver.

    Then if all seems good look at getting your own truck AND trailer. While 5% seems to be the norm for trailer rental, do the math. In a year you will be paying over $10k on that trailer that you do not own. I can find good vans all day long for under $10k.

    Insurance is high. Plus on top of that you still need physical damage and bobtail. That can't be part of it because that is based on tractor value.
     
    BigBadBill, Dec 3, 2011
    BigBadBill, Dec 3, 2011
    #6
  9. Dec 3, 2011 #7
    ultraclassic

    ultraclassic Light Load Member

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    Aug 4, 2011
    Oklahoma City, OK
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    @Bill I was thinking the same thing its a flatbed company and I heard them talking about trailers over the week and they dont seem to be cheap and used ones not readily available, due to oil field im guessing. He has to buy a truck after the first of the year to put me to work but he said he was needing to buy one and add a driver anyway. As a company driver i'd made 2325.00 before taxes. Leaving last saturday and being home friday morning. I dont really think that was too bad
     
    ultraclassic, Dec 3, 2011
    ultraclassic, Dec 3, 2011
    #7
  10. Dec 4, 2011 #8
    Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    Escrow account. Monies held by the truck company from the operator to cover expenses that operator may incur and truck company is not responsible for. In other words, truck company holds your funds usually about 1000- $1500 in case you owe them for fuel or IFTA or something and quit. Could even cover a claims charge. Not every company does this but most do.
     
    Allow Me., Dec 4, 2011
    Allow Me., Dec 4, 2011
    #8
  11. Dec 4, 2011 #9
    ultraclassic

    ultraclassic Light Load Member

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    Aug 4, 2011
    Oklahoma City, OK
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    @Allow - Ok thats what I thought and it never came up. Even in talkng to his other drivers...thanks
     
    ultraclassic, Dec 4, 2011
    ultraclassic, Dec 4, 2011
    #9
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