5 Year Contract in Exchange for a New Truck

Nope.

Nope nope nope nope.

Nope.


I would stay far away from that. Myself, I'd tell him I'd like to have (insert model/specs here) but I am not doing any sort of lease or commitment, I will drive it and that is it.

 

While I agree in principle on most of the comments that you fine folks have brought up I can tell you the other side. If I knew I had someone that I trusted and knew worked well with me I would possibly do something like this. Some days it is not just about money but also helping others get ahead. There are a few on YouTube where their bosses have done exactly that. Thinking velox and Nevada etc.

as far as the cash bonus that is not fair or realistic the expense is already is in place (the new truck) along with the tax advantage of depreciation etc. to also be on the hook for extra cash is not realistic.

 

This in fact could end up being a very clever way to get drivers to stick with the company I mean owning the truck free and clear after 5 years even if it does depreciate in value has still got to be worth a few $. Like you said its all talk at the moment nothings been written down yet and handed to you to sign, but as many have suggested be sure to look over the entire document and do read the fine print, have another contract attorney read it over and see if it needs amending. As most would ask though "whats the catch" if may just be having to work for them for 5 years, well if their a good outfit that'd be fine, if they are the worst employer around then not so good and perhaps that's why their having to dangle a carrot in front of you.

 

get a LAWYER to look at it before signing. And let him know your lawyer will give the approval for you to sign, now look for his responce, that will tell it all.

 

What a concept!! Be a lot fewer agreements signed if that gets any traction.

 

Lease Purchase Program | United States | Greatwide Truckload

 

Everyone talking about 500k in 5 years... nah. More like 700k in 5 years! (140,000 * 5) 140k is less than 2700 miles per week. 100k is only 1,900 miles per week.

How much would a truck with 700k on the clock be worth in 5 years? My crystal ball is broken, but I don't think it will be worth anywhere near $100K in today's dollars. Even a Paccar would only fetch about half that.

Spec a truck, tell him what the MSRP is for said truck, then propose the retention bonus broken down over 20 quarters. Every 3 months you stay, you get $x/20, so if that truck were $225k, you would get $11,250 bonus every quarter for the next 5 years (possibly even in perpetuity). I bet it won't be met very warmly, rather met with a counter for whatever he thinks the trade-in would be on said truck in 5 years, so $50k/20 = $2,500/quarter.

Good luck in whatever you decide.

 

I've consistently made six figures for the last 6 years of trucking. If my current employer offered me a contract like this I would give it a pass.

How nice your truck is doesn't pay the bills.

However, I would consider it if all pay raises during this timeframe are matched to the inflation rate plus 3%.

 

Our family has 4 Lawyers, $300 hr. For family $0 charges