Trans Am Still

Have you done the math on 1500-2000 miles a week? You might be in the 1% that gets the 1500+ mile runs with 20k in the can for 3k a miles a week, but more than likely not. Freight is slow now and will still be slow when you get here. If you think that you will consistently run 2500+ miles a week you are going to be in for a shock.

One of the guys at orientation the same time I was went lease. He made it all of 3 weeks.

I recovered a lease truck a while back. Loaded T680. It was interesting to read back through the messages on the TREQ unit that lead up to the truck being repo'd. Sure was a nice truck though... just needs a new driver for some reason.

 

If you know what your doing Trans Am will roll you. My last 6 months I did 88,000 miles. I had two students. 4,000 in one week with one and 5,500 in one week with the other, which is the most I ever did with a student cause I don't usually drive team miles with students. But it is tough to do that kind of mileage. You have to be out long stretches.

 

I have done the math with multiple scenarios. I am not banking on 3000 miles a week. I understand miles can and will go up and down...But what I also look at is the lease op is very similar regardless of carrier. I know Primes lease op runs a bit higher as far as lease payment weekly.. But for the most part they are always going to be written in favor of the carrier.. I have been sent a copy of the blank lease forms from TA so my attorney and CPA could look it over. I have used the high side worse case scenario in every case study I have done.

One of the questions that I still think of is that while I have read every negative thing going back to 2008 about TransAm from former drivers non driver employees lawsuits etc. But when you have 1400 tractors 2400 trailers and while I understand not all trucks are running but even taking that into account . Worst case scenario they have 250 300 lease trucks on the road and if they are still on the road I have to assume that these leases are not just breaking even but making some money.. because the bottom line with the driver shortage that exists and almost every trucking company have there version of a lease op program Drivers who may stay for a number of reasons but no driver is going to stay if they are not making money or even worse going in the whole.... IMO Especially in the Kansas City market.. while I am no expert about trucking but I just can't see failing lease drivers just sticking around to continue to fail. Can anyone explain to me how all the lease drivers at trans am can be failing and still driving for Trans Am?? I am seriously just asking because if there is a reason I have yet to think of or consider I really would like to know as I have gone to great lengths to try and make the most informed decision I possibly can. Even in overlooking driver facing cameras which I NEVER believed I would. In fact I believed that I would never drive a CMV before I would drive with a camera staring at me..

 

^ I think it depends on how you define "falling". To me falling as a TransAm lease driver does not just mean a complete crash and burn where you go bankrupt and have to go home with your tail between your legs. Although plenty do crash and burn, to me it is making a less than .30 cpm is a failure.

I choose .30 cpm mile as that is what you could make as a company driver. You must have something seriously wrong in your records if you could not find .30 cpm someplace in this industry as a new driver.

I believe a large percentage of TA L/O trucks on the road are making less than .30 cpm. TransAm will jump in and look at your miles if you complain enough but if you are taking home $250-$350 it is fine by them, if you don't complain and keep delivering loads, keep making truck payments, take home of $0 is fine by them.

 

Well first of all anybody pulling a reefer for .84 has some issues no doubt and driving for slave wages is failing in my opinion.
TranScam is a driver mill... they get more noobs to fill those seats over and over again.
Anddddddd when they do they make a killing off those drivers working for peanuts.

Lets break this down a tad
Rule number one.. on mileage pay you don't get paid all the miles you drive.
Actual miles will differ.
Anybody that's been a company driver would know this and for a lease driver earning peanuts per mile and paying for the fuel this makes a big difference.

Lets talk fixed costs, I'm currently leasing a truck for 3 years through Schneider.
All in as in all weekly fixed costs including the truck, insurance, maintenance account etc etc is $1103 a week. I've seen others working elsewhere elsewhere be paying close to $1300 a week.
Lets just say Transam is $1000 a week and keep the math simple.
That's $52000 a year right.

Say for the year of driving your paid miles is 115,000 miles and actual miles is 120750 or an extra 5%
At 7.5 MPG paying $2.30 a gallon in fuel will mean about $37,000 in fuel costs (there's DEF but forget that for now)
At $1.03 a mile with FSC that would be $118,450 in revenue.

$118,450 - $52,000 - $37,000 = $29,450 profit to you but hold on you pay higher taxes being you're an IC and not an employee. That $29,450 now become $28,000 at best.
120750 miles divided by $28,000 means........
You drove for $0.23 per mile in company driver world!!!!!! All the while have the risk and responsibility of running a truck!

I used general numbers here to give a rough idea, like there might be some detention pay but also I didn't include DEF costs.
Also have to factor in if the truck breaks down, tow and hotel costs etc etc.
Most important is you don't know for sure if you'll even get all those miles.
Point is DON'T LEASE for peanuts per mile!
Don't do it! There's only less money to be earned and more risk.

Some will say "Oh but after 5 years I'll own the truck".
That 500-600 thousand mile truck might be worth $50,000 now
You just spent 5 years of your life driving for maybe $28,000 a year.
A company driver especially an experienced one should earn $0.40 a mile +
Say you drove at Crete as a company driver (I did once) for that same 5 years. They pay .45 a mile
There's no reason anybody can't earn $50,000+ there.
While a TranSCAM flease driver earning less than $30,000 a year.
Over 5 years that's over $100,000 difference.

All this is to point out how BAD mileage based flease jobs are, especially $0.84 to pull a reefer. That's downright scary!
Again my numbers were general, anyway you look at it there's no money at $0.84 a mile.
Don't do it! Anybody out there listening and reading.. don't do it!
If you're wondering why I'm leasing I pick my own loads and get paid on percentage. Totally different ballgame.

 

Thanks I think that is a good gauge.... I guess I am finding it hard to understand why they wouldn't want to see a driver make as much as possible since in turn it would make them money.. But if that is the case maybe TransAm is not the place for me.. I do not see a lot of point if someone is willing to work and do the job why they would have to complain and fight to do that job.. I apparently need to seriously re think this. Being that TransAm is by no means where I have to go.. But if they are really this type of company I am begining to wonder if I want to be associated with that.. No I have found several companies that are far better than 30cpm.

Thanks

 

You got it all wrong... these companies want drivers to earn as little as possible since in turn that makes them more money.

 

Thanks for the info.. Not sure I have anything wrong with me but it was informative for sure.

 

lol it wasn't directed towards you i was just speaking in general.
Once anybody studies this stuff and does the math in multiple approaches they'll see it's a bad deal.. a really really bad one and it's obvious too.

 

This is where hate and discontent comes from. Once a person has clearly made up their mind everyone else just needs to let it go.