Trailer Rent?

Discussion in 'Ask An Owner Operator' started by JDP, Apr 13, 2012.

  1. JDP

    JDP Medium Load Member

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    Dubuque, IA
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    Disclaimer: I work at and my dad and brother own the specialized trucking company Pape Transfer.

    I see a lot of you guys discussing trailer rent, wanting to buy your own trailer, and several other related topics.

    How common is it for companies to charge their O/Os trailer rent? We don't because our O/Os are constantly changing trailers and allows us to be more flexible. By not charging it, at $150/week that's almost $8000 annually in the O/O's pocket. And $150/week can be a bit conservative, I've seen it much higher (as high as $185/week). Does your trailer rent "build equity" so to say that you own it after you pay it off? I guess I don't totally understand the topic.

    This discussion will not change our position on not charging trailer rent. Rather I'm interested in seeing what companies are, if it is just a way of firms covering costs, the O/O buying the trailer, ect?
     
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  3. Ruthless

    Ruthless Road Train Member

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    I don't get charged thru the lessor. One could say that they give a lower percentage (70%) instead..but I find my numbers to be in line with those being paid higher percentages from competitors..before the other administrative costs they are assessed.
    We use "company trailers" for the same reason you do, except that the type of trailer doesn't change, just that live loading your own for each would take up an enormous amount of time compared with drop n hook a loaded trailer to run with.
    If one were to pay to rent said trailer, I would expect that 1) all associated costs would be at the actual owners expense [barring abuse] 2) trailers would have to be updated on a consistent and abbreviated schedule. Or: be subject to a lease buyout after a set period of time.
    When the company I work with used O/O's with their own trailers, compensation for your own trailer use was 7% higher than with a company trailer..which shows me that they based cost upon use vs a flat rate that wouldn't accurately reflect expense.
     
  4. wichris

    wichris Road Train Member

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    At one time company's charged a trailer rental to steer clear of IRS regs of providing the equipment to a sub-contractor. I'm sure that a lot do it now as another string of income.
     
  5. LSAgentOZR

    LSAgentOZR Road Train Member

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    Nashville, TN
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    Landstar charges trailer rent.
     
  6. US MARINE

    US MARINE Heavy Load Member

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    On flats - but not on vans do they ?
     
  7. LSAgentOZR

    LSAgentOZR Road Train Member

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    Nashville, TN
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    They charge trailer rent on all trailers. open deck is more expensive then van of course.
     
  8. Cummins_444

    Cummins_444 Medium Load Member

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    Northwest, IN
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    Falcon Transport charged $150 a week
    PGT charged 5% of line haul
    Great American Lines charged $185 a week plus maintenance charge and held a $2,000 dollar trailer escrow.
     
    All companies maintained equipment
     
  9. JDP

    JDP Medium Load Member

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    Sep 25, 2011
    Dubuque, IA
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    Is Landstar's percentage still 65%?
     
  10. JDP

    JDP Medium Load Member

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    Sep 25, 2011
    Dubuque, IA
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    What's your percentages for those of you paying trailer rent?
     
  11. skateboardman

    skateboardman Road Train Member

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    flatbed heaven
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    from my understanding landstar does not charge rent on vans, they just pay a lower percentage , so in effect that is a trl charge, lol.

    the avg rate for many years has been 7 to 8 percent difference between having or not having a trailer.

    example have your own, you get 75 per cent dont have one 67 per cent.

    at mercer, if you dont have your own you can get one on a lease. i guess lease- to -own would be the best description.

    you can get a new trailer , 60 months term, make payments and its yours at the end. the payment consists of the payment plus physical damge, plus escrow . the payment is like 500 a month for flat, 100 escrow, and 40 or so for phys damage.

    the escrow is what pays off the trl at the end of lease. if some gets one and keeps it 12 months the escrow is used to do any needed repairs and the amount of tire tread and brake shoe use if figured and the remainder given to driver. The amount for each 32 is in lease. when someone else leases the trl there would be 48 payments left on it.

    when i leased i got a 08 untility spread with 27 payments left, i pay 450, 100 dollar escrow and ins. about 40. 590 a month. at end of lease i will have 2700 in escrow so i will pay a difference of 3300 to finish the purchase.

    it basically works out to 150 a week on a flat, steps run a couple hundred a month more if i remember right.

    but then we never do drop and hook , we are married to our trailer.

    be a hard deal on a drop and hook operation.

    does pape pay a lesser per cent if you dont have a trl??


    and to answer your last question, mercer is at 75 per cent w/trl (only way)
     
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