How are O/O making a living at $1.00 a mile

I wish you well I truly do. I hope that this particular lease purchase actually works out even though I know from experience that they never do. I met only 2 guys who were making it pay.
Now think how many attempt it.
Think how many companies offer lease purchase.
Why?
Because it is a recipe for failure and the companies know it. Many attempt it thinking just as if they were in a casino that they will be the lucky one. Therefore the companies are willing to put just about anyone with a pulse in that truck.
Ahhh why am I explaining this nonsense we all know what I am saying is true. The only one who will disagree is the new guy with a big hope badge on and first time round enthusiasm.
Dude, my numbers for 2016 showed a cost per mile of $0.95. That included a 15% commision. To make it pay reasonable not fantastic I need $1.50 / mile minimum. This is not unusual. Fairly normal numbers.
Once you start paying for repairs and tires on an alarmingly regular basis a $1 per mile will seem ridiculous as it does to most of us here.
It would be the same but just a little better if a guy could go and buy a truck for say $150,000 with maybe a $3,000 note each month. That is a better scenario than a lease purchase because of tax implications and moving the loan around to renegotiate (playing for time). To me it is still horrific.
The only way to function at a $1 a mile is for somebody else to actually pay for everything. Free fuel, base plate, help with tires (and I do not mean $20 off) free repairs etc etc.
BUT you are not making $1 a mile are you? It is plus fs. So what is it maybe $1.35/mile.
Buy a reasonable truck and trailer outright and make sure you have enough money to keep up with the repairs. Keep the speed down and play the game. Then there is money. CRE used to offer $1 a gallon. That might work but training would probably raise its ugly head.
Good luck to you. I hope you succeed despite yourself.

 

And his truck will be wore out when all is said and done. It will need much more than an in frame. And don't get me started on the EGR/DPF/SCR systems. Sounds like a world of hurt is coming his way. And that Warranty? Sure.

 

And yes it does been through it all and more losta wife and father ! Still out here rebuilding now!

 

Watch for a white peterbilt 386 pulling a freymiller trailer with an o/o name in big blue lettering on the sides of the sleeper, can't remember his name but when you see him, tell him that warranty isn't any good. His dpf system screwed up and burnt his engine up and Cummins replaced his engine and the entire dpf system and he was three months I think it was from playing his truck off so he left the lease with a brand new engine under the hood. Yes ladies, the warranty pays. As for the truck being worn out, lol, if you can wear out a truck in 600k miles then you better go back to a trainer and learn how to drive properly. If you can't make it on what I'm making them how is it I clear 1 to 1.5 k a week, have a cushioned maintenance fund at the company and a building surplus in my bank account. You can quote numbers all day long, but it does not erase the fact that I am doing quite well. And as for not making it to pay off, we'll ask anyone that has been to orientation at freymiller about the picture frames full of signed $1 dollar bills in that room. This company does not even mention l/p in the interview and hiring process and even does their best to get you to drive 6 months as a company driver if you call seeking the l/p. Your numbers btw does not take into account the hefty discount on fuel we get at loves or a couple of other things. Oh and as for the truck being wore out when I get it paid off, well it seems the length of my contract is as short as any and shorter than most bank notes so tell me how it is that your bank financed used truck is any less wore out than mine, do you park it and drive company till you get it paid off? Not likely, that's about the dumbest argument of them all. Sorry but that's the truth of it.

 

you said yourself you make less than the company drivers....

 

Does a company driver get a truck of his own at what he's making.You all claim to be business minded but I truly feel sorry for most off you, you don't even take the time to pay attention to what's said and do the numbers, you just bash, it's a wonder most of you are not broke and destitute. You miss the obvious ignorance in some of your arguments. I agree that paying full price for fuel, outlandish truck payments etc. Means you can't make it at 1.00 a mile for sure. But you can here. Everything in total costs me $ 859.00 a week plus .10 cpm going to maintenance and escrow accounts. So my costs minus fuel for a 3000 mile week would be 1159.00. Let's say 1.24 per mile, haven't looked up fsc this week. That's $3720 -1159= 2561.00 461 gal. of fuel at 2.86 per gal = 1318.46 minus discount of 184.40 = 1134.06 fuel cost now 2561-1134.06= 1426.94 net. That boys and girls is the real numbers. I pay $500 a quarter on taxes, you all can subtract that. Now tell me again that I can't make money. Thanks and have a good day!!

 

I said some, see what I mean about not reading, by my figures if they actually work for a company that gets them 3000 miles a week and if said company pays more than .475 cpm then they make more, that is until you add the equity of the truck of course, then they lose.

 

well,no,don't berate my reading or comprehension skills when you say,and i quote...

you flat out say you make less than company drivers. after that you say what you gain is the truck,which,as stated by others,may not be such great equity.

 

Company drivers have Benefits, such as health insurance/paid vacations/paid holidays/social security match. Etc. You have nothing!!

The company you are leasing from is saving all that money by not having to give you any benefits. Admit it or not, you are making less than a company driver with all the headache.