Leasing onto a company... take Landstar for example.. how is the low rates worth it?

Nothing against you Rollin Coal. I know your a fan, it's just everybody that drives for a company thinks if they go out and lease they'll be rich by the end of the year. And I'm tired of these big companies feeding off this fantasy. They pay garbage and treat the o/o like they are garbage. I've never leased, so can't give personal experience, but I've had own authority for a long time, and some of these leases are a major scam. Guys would be better off trying on their own. Just be careful if your leasing, Be smart and watch out for yourself.

 

it seems as if you have leasing confused with a lease purchase, if you own the truck and trailer and lease to someone like landstar or mercer ,that is far different than lease/purchase a truck.

I do believe you are discussing something totally different.

and it was only after deregulation in the early 80's where it became much easier to get authority, before that it was a much different deal. in fact, there could be an argument made that its actually to easy for authority to be had these days.

and there can be advantages in leasing your truck to a company , like buying fuel today for 3.17 a gallon ( 49 cent off cash price at pump), getting 700 dollar steer tires for 405 bucks

 

The thing about it is just because you have your own authority don't mean you can make anymore money than someone leased on to someone! It works for me because I have my own direct customers my all miles even with that runs around $2.68/mi but my cost is higher than someone leased to someone so at the end really how much more does someone make running there own show?

 

What the heck are you talking about? Are you confused with the term leased to a carrier and lease purchases? My truck was paid off way before I leased it to Landstar. Ive done both, had my authority for 6+ years, owning multiple trucks and even had a o/o leased to me with his truck. I lease my equipment to Landstar because I make more than the average o/o with their own authority with less hassle.

 

I figured after I posted that I would be hit by the lease police. No I'm not confused with a lease purchase compared to leasing your equipment to a company. I'm not attacking you guys, Both of you are aware of what your doing and you watch your bottom line. My post is directed toward some of the newbies coming into the business that jump on the first thing to come along, and lock themselves into these leases where it becomes very hard for them to get ahead. I want drivers to realize that leasing on provides a service for your company, finding loads, discounted fuel, as Skateboardman has stated. Tires, paperwork, etc. my point is whatever the service is providing for you be sure your getting what your paying for. In a good lease the percentage is worth the squeeze. But if you read what's being advertised out there with some of these leases, anyone who's been around this business can easily see it's a ploy to feed on new o/o still learning. If I run at 2.87 per mile for all miles for the quarter that covers my bills and supports everything I need to, someone that leases does not need to be at that rate. Their rate can be 2.25 for all miles and still carry around the same profit. All I'm saying is be aware of the number needed. Moving freight at 1.34 lease or no lease doesn't sound good at all. Unfortunately, it's usually months later and an unhappy bank account which makes guys come to this realization. By then it's too late.

 

Were my posts really that difficult to follow? Sorry I was not able to articulate it correctly for you.

 

I am an owner with a small company, making 82/ of loads over $2/Mi.in a dry van. I don't chose my loads but my dispatcher is paid only commission on 5 trucks so he pushes the rates up. I am new to being o/o so this format seemed like a good way to start. The company also maintains the trailer in their 18% so I can see what's going on before buying my own. And the money is ridiculous, most important since I am paying off debt and looking to leave so. Cal.

 

Way more than a little paperwork. The list is long.

 

In your .10/mile estimate are you including repairs, or only tires, brakes, oil changes?

 

Largecar359.... Are you suggesting that a new O/O newbie just go out and buy a truck, get their own Authority and jump into making it on their own??

Some of the Lease-purchase deals out there is a straight walk-away-lease giving the Newbie a way out if they cannot hack it... It may help a few that haven't the means to get ahead any other way...

Yes, I agree that a lease purchase is hard and lot of them fail, most due to not learning the business side before jumping in.. BUT, I have seen a lot of O/O that buy their own trucks fail too, and they have far more too loose than the LP... Buying a truck and getting your own Authority is NO guarantee of success either...

Being in ANY business is risky, and many fail, not just in trucking... When I first bought my truck in the 70's. I don't think their was a lease-purchase that they have today.. But I saw O/O's fail because of no business sense..

Some decided to hit the Chrome shops when the big bucks first started coming in, instead of saving for the repairs/replacements sure to come...

Even thou I bought my own trucks, never had my own Authority, but did OK leasing to carriers hauling their freight.. I did manage to save enough to retire at 55 back in 1997..

If I were to go into trucking today, I would NOT rule out a Lease-purchase to get started today, but would sure do my homework first and get a couple years trucking under my belt first....

Far too many jump into the L/P without either and start blaming others for their own failure... Gives others a way to belittle the L/P program without even looking into what's offered by some companies......