Lease Purchase Programs?

I am not force dispatched at all, but I also do not turn down loads, simply because I haven't seen one yet that didn't make me a profit. If it makes me a profit, I will go there. It makes no difference to me where it picks up, or goes to.

I drive bobtail anywhere I want to, when not pulling their freight, sometimes several hundred miles away to visit friends/family. They are not obligated to, but they will almost always pay me the miles to wherever I ended up. Then again, I do get paid for all miles, empty and loaded, the same rate.

I got my maint escro back the same day I paid for my truck, and they paid me interest to boot.

I do prefer fixed payments tho. I want to know exactly, the total and final amount I am paying for the truck, along with a fixed, easily affordable truck payment. If I have a good week, I want my pay to show it, and not the truck payment eating it up.

I also prefer not to deal with the headache of permits, truck taxes & tags, IFTA, Athority headaches, booking freight, negotiating rates, freight insurances, brokers, or anything else I have to go out of my way to do, or pay for, for that matter. Get me a load,...Pay me to go get it,...Pay me to get it there,...rinse and repeat. Nothing more.

 

i DO have the facts straight. all the info is posted right HERE on the truckers report.

 

Well of course your facts are straight ... it's just your source that is wrong.

 

I have friends that are involved with both types of L/p's fixed and percentage. At the end of the day, when comparing notes on them, among the better deals out I have seen, the trend seems to be that the freight only pays so much in any given tye of operation. Fixed or otherwise, if its a decent L/p o/o contract, its going to pay close to what the market will support either way. My personal conclusion to it all was this...

A variable income based on percentage vs a fixed, similar rate, would likely be a slight, but never long term advantage during times that rates are higher than normal, but otherwise be to a slight disadvantage. One must consider that, for example, the dry-van/reefer market where rates are already low and competition is high, it tends to always be more often that rates are lower, rather than higher long term. Every time rates go up because of demand, the large carriers will gobble it up fast, competing for it, washing it out again. Being leased onto a carrier that allows choice of loads based on rate, if you want to stay buisy making money, you will often have to lower your standards of minimum rate back down close to, or within the going average so you can keep up with truck payments. Sitting around waiting for that 'one' load that pays a higher rate often costs you money in the fact you are sitting still. Average it out for the year, and most of the time you haven't gotten further ahead financially by very much, waiting around for those fewer 'Better' loads during the L/p. A good fixed rate that pays close to what the variable rate would be, is much easier to predict and manage. On the other hand, looking long term, If freight rates are expected to increase by any significant mount during say your L/p, then the Variable rate is a good option. I guess it depends on if you think the rates in whatever type of freight you plan on moving are going to increase by more than a few percent by the time you complete your lease, Otherwise the 'Safer' route would be in taking the best you could get in fixed pay, running with that. Either case, if you get a decent deal, the difference long term is not likely going to be in the tens of thousands of dollars category in difference, unless some catestroffic event drops demand by a very large amount (the economy bottoming again), where the variable rate could end up killing your lease. The conclusion to all this of coarse becomes clear. Answering that question for yourself would be the same as answering the question of 'Is rates going to be significantly higher by the time I pay off my truck?', witch no one is likely answer very well.

Just some thoughts on the subject,nothing more,...Rawze

 

I am on a fixed rate, but I just renewed it because of paying off my truck, and it increased slightly along with lowering insurance costs. I now, without truck payments am taking home roughly 0.85c/mile NET where last year with payments it was 0.69c/mile. Same company, Same O/o agreement. I asked them about future rates, when I renewed, and they told me that if their offered rate increases in the future, they would automaticly pay me the new rate. They also said they do not lower rates for anyone already stayed signed onto them. I thought it was a nice offer, considering they know I can now take the truck anywhere I like. Only time will tell the outcome of that one.

 

For van/reefer stuff, I doubt it's a big difference between cpm and percentage most of the time.
Now, for what I haul, I wouldn't even consider cpm. My current gig is paying over $4 a mile to the truck. No trailer rental, permits, escorts, etc out of my money. That is pure money to the truck. Sometimes I just deadhead back if nothing is readily available, which still puts me at over $2 a mile round trip. CPM for me? Not a chance....

Martin

 

few years back. there were mutliple sources. on multiple programs. and they were first hand knowledge.