Trans Am Still

I have been out of work since last month. I had a very minor surgery on my foot. That put me on crutches which was no fun.

I hope to be back to work by the middle of next week. I have to take a physical first though. I was allowed to start putting weight on yesterday. If I had the physical today I would fail. Hopefully I will be up for it on Monday. Time will tell I suppose.

 

I don't want to discourage you from leasing if that is what you have your mind made up to do, Big Papaxx. You can make it work but you need to be aware of exactly what the business relationship with TransAm will be. TransAm is not the only one that follows this business model so it is something to consider with the others also. I just wanted you to be aware that even though making money isn't a priority for you ....you can end up owing them thousands of dollars. There are many good things about TransAm, and with the right mindset you can make a lease work, it is just much harder when you are new to this industry. If you know the pitfalls, it is easier to avoid some of them. You do have some advantages that others that lease from TA do not.

Thanks, George. I'm sorry you didn't get to spend Thanksgiving with the family. Will keep my fingers crossed for Christmas.

Exactly!

A good point and one that is very rarely ever challenged. Most will not have the money or desire to hire an attorney and go through the legal process. I think many of these companies bank on the fact that folks BELIEVE they have no rights because they were talked into a contract. It is like the old saying "If you can not dazzle them with brilliance then baffle them with bull". Most people will assume that because they were coerced into signing a contract that the contract is legal, unbreakable, and that they have left their rights at the door.....all because they signed that piece of paper.
There have been several cases that the employee vs. independent contractor relationship has been challenged in a court of law ....and the companies have lost.

Well said and absolutely correct, Crazy driver. Pete said many times that the number one contributing factor to failure in this business is unrealistic expectations.
. Base your spending on the realities not on the unrealistic possibilities.
There are some good lease options out there. Leasing from a company geared for new drivers makes it more difficult to be successful .....it can be done, but it is ALL on the driver whether it works or not. Company policies are set up to oversee the inexperienced driver......with a beginner's pay.

scott, good to have you back also! I know you are looking forward to getting back on the road ....I am so glad that you are on the mend!
Evomalo, I hope you get a good doctor's report and can get the wheels turning again soon!

 

I have a theory on companies that they take care of a few of their drivers(5-10%) and let the rest fall. As HTQ pointed out the tax benefit to Trans Am to leasing is enormous. First they don't have to pay SSN, Workman's Comp or a variety of other taxes. Second they don't have to pay 50+% of the 1099s cause they usually end up in debt, so they get freight moved for free. Then when most leave they get charged, usually in the thousands. As long as they don't put it on your credit who cares right? But those are fraudulent losses. Stuff like charging the driver who left for the fuel and then the driver who takes over that same truck for the same fuel they have written off as a loss cause the driver who left isn't paying squat. Trans Am hard sells that lease to the trainees while they are supposed to be training. They do some training stuff but that 4 days on the yard is to sell the lease. To have any type of success in Trans Am leading program you need three things- 1. A truck that doesn't break down. 2. The ability to make sound financial decisions, such as where and when to fuel cause they want you to fuel where their contracts need to be fulfilled not necessarily where its cheapest, etc etc. 3. For them to decide for you to be in that top 5-10% and roll you that way.

They have nice equipment but the owner of Trans Am is also part owner of MHC KW. So he is making money and a lot of it from all directions. He also used to own that whole block in Olathe and has either sold it or leased it to all this businesses that are on it.

Most will fail with that lease cause it is designed that way. More tax write offs plus loads are being ran at little to no cost to the company.

Just a few thoughts.

 

Thanks to you and HTQ... Also Johnny Jacobson founder and owner of Trans am also owned National Beef and National Carriers. He grew National carriers in becoming the 3rd largest refrigerated carrier in the US at 1 time and then sold it all... My understanding is he is not involved as much with TransAm on a day to day basis but he did set up the business model and it is followed..

I for one appreciate all of the information and is the main reason I came to this thread is to get the information... I value the information as it comes from the people who have had the experience directly with transam. @HometimeQueen I appreciate the info and none of the information is discouraging it is all very helpful. As I am a person that believes in making sound business decisions and the only way that can be accomplished is to have knowledge.. So thanks

 

Thank you HTQ. Walking hurts like heck. I had seven stitches on the bottom of my foot.
I'm taking baby steps right now. I'm doing better then yesterday though.

 

I also believe that TransAm has a top tier of drivers that they take care of.....they have to have a reliable core to fulfill their contracts. That is probably one of the hardest things for a new driver to achieve, lease or company. It takes time and a proven track record, it takes a good DM that realizes you are a hard working person and not a truck number, and it takes sacrifice.
The King had been in the office before and heard his DM argue with a planner about giving a certain driver a load. The DM was opposed to giving this driver this particular load because he felt the guy was a slacker. It may be that the driver was a perfectly fine driver...or he may have been a slacker.....but it shows the importance of building that relationship with your DM and building your own track record.

 

Is it Better to Lease or Buy a Truck for My Business Taxes?

Click to understand which type of lease is right for you.
1. Operating Lease
2. Capital Lease
3. Truck Purchase

Cash is the most important factor when operating a small business. Although spending cash to acquire a tax deduction (purchasing a truck) reduces your taxable income, it does not reduce your tax directly. Consequently, consider cash position before making any purchases. ( hint: lack of cash assets in the form of currency is a recipe for disaster)

 

I agree 100%. thanks for the info. I have actually looked at just buying a truck or 2 and then leasing them back to carriers of my choosing.. Unfortunately all the education and business experience (even with Logistics) does not prepare someone for this industry.. So I decided that the best decision is for me to go through the process and get the experience first hand. since what I am really after is to drive and initially I assumed that purchasing a truck would be the quickest and most direct to get me to driving... But as Einstein said: The only source of knowledge is experience..

 

HTQ agree and say most of the same things...she just does it with a lot more flair and passion. Good, well written points, I agree with all of it!

 

Want to know where the bad weather will be? Just ask where I'm going? BS.