Leasing info

Up front let me say that I'm not looking to lease from USX, I've had my fill of the trucks they buy. I've spent 17 of the last 30 days in the shop and surprise, surprise just went back in last night - 2nd truck. Gotta' love these Internationals they brought in.

My question is pretty straight forward, how are you lease operators doing with USX? What kind of weekly mileage are you seeing? I could ask a recruiter, but I'm looking for an honest answer. I haven't asked any drivers in the lounge yet either because, in all honesty, they're not much better. The way some people tell it, they're making six figures in their threadbare Fruit of the Loom t-shirts and stained sweatpants - doubtful.

The reason I ask is that I want to make an honest comparison between what I make as a company driver and what I could make as a leased driver. Below is what my initial estimate is based on my current averages:

2008 International Prostar

Lease Operator, monthly:

Miles per month: 21,000
Fuel miles per gal: 6
Fuel cost per gal: $4
Fuel Surcharge: $0.42
CPM: $0.84 (Based on dedicated routing)

Expenses
Fuel: 21,000mi($4/6) = $14,000
Lease: $1,300
Insurance (est. quote, OOIDA): $450
Maintenance: $1,000
Total: $16,750

Income
Linehaul: 21,000mi*.84 = $17,640
Fuel Sucharge: 21,000mi*.42 = $8,820
Total: $26,460

Gross Profit
$26,460 - $16,750 = $9,710

Company Driver, monthly:

Miles per month: 21,000
CPM: $0.44 (Based on dedicated routing)

Income
Linehaul: 21,000mi*.44 = $9,240
Total: $9,240

Gross Profit:$9,240 = $9,240 (Shocking!)

Conclusion:
Lease Operator: $9,710
Company Driver: $9,240
Discrepancy: $470 + health insurance + implied risk of unforeseen breakdowns + hotel expenses = what a joke.

 

There are several assumptions here, naturally.

1. Major breakdowns are not a regularity, which as we all know is an unknowable variable. That's the definition of risk.
2. That insurance quote is remotely accurate.
3. We're running at least 5k miles per week.
4. A tenuous 6 mpg.
5. All figures before taxes.
6. Leasing from an outside company. I don't see how USX leasers remain solvent, other than driving off the books.

Obviously, even a slight change in variables brings the profit margin from marginal to non-existent. Near as I can tell, the only 'real' benefits are in non-monetary terms (choosing loads, hometime, etc). Plus, you eventually own the truck yourself which may or may not be good, depending on the value of scrap metal at that time.

 

I appreciate the condescension, it really helps get your point across. I would be very interested in your business model that allows you to run 4 times as many miles without using 4 times as much fuel.

 

I run team dedicated, 5.5k miles per week.

 

Thank you for actually answering my question, EasyB. I think this reflects what I'm saying and helps make my decision easier. With my current company route, I bring home on average $1200-1300 a week. That puts you roughly $150-$200 more per week as a lease driver. Keeping in mind that I am reimbursed for ALL expenses (tolls, scales, equipment, maintenance, etc.), get health insurance through the company, and if my truck takes a dive, I get a new one for free. I guess I really don't see the incentive here, unless you just REALLY want to own your own truck, which by the end of the lease term will have nigh on a million miles on it. Do you feel it's worth it?