Anyone familiar with leases? ;)

I would take issue with a blanket statement of average rate per mile paid for actual miles being $1.48. Actual miles is a relative term... what if someone decided to run 100 miles out of route every week to see a relative or go home? Is that factored into their "actual miles"? I doubt it. They might factor in a projected out of route of, say, 8% to the dispatched miles to come up with their "actual miles". It is just too vague.

I think they are really high on their physical damage. I own my truck but have it leased on with a carrier and my physical damage premium is $2 per 1,000 value. My non trucking liability (bobtail) is $10 a month less than what they want from you, but they are not way out of line.

Base plate is pretty close to realistic and many outfits will do the payment method with a owner or leasee, so that is not a problem. Didn't go over the PDF in depth, but I would ask if you pay the annual FHUT tax, or since, per the contract they have total control of the equipment, they pay the FHUT. I would assume you do, even though you did not mention it.

I did notice that they do have a right to expect certain maintenance servicing of the equipment, but at least they are not demanding that it be performed by them or a designated maintenance shop. That is good. You have the freedom to get your work done at the shop you chose, or do oil changes, lubes and such yourself (highly recommended to save a lot of money). You had better have this clarified though. I have seen carriers go ahead and mandate a particular servicing and take the funds from the escrow, only because the service wasn't done by a certified shop.

These are just a few observations done on the fly. One thing I would recommend to anyone is that they put a crowbar in their wallet and buy an hour of an attorney's time and get a good legal eyeball on the contract and explain anything that is not clear to you. It is well worth the cost and may save you a lot of heartburn later.

 

I would have concern about the base plates. If they got a bug up their (you know what) and decide to terminate your lease, and you are 1000 miles from home...you could have a problem. Minor point, but something to keep in mind.

 

I would be inclined to find out what the average rates to the truck and miles per week are for the last part of 2009 and Jan of 2010. Things have changed a lot since 2008.

 

get your own plate..

 

They probably won't be quick with these numbers. Remember 2008 figures include a fuel SC based on $5.00 fuel.

 

Good point .

 

your quoted rate of 1.48 incl. FSC/ minus 30% leaves the operator with 1.04 p/m whats your BEP?

 

I took a brief look at your posted lease and the first thing that jumped out is the $15,000 escro account your required to carry with them. The payment terms were blank.. no fixed monthly, weekly, daily, or any way of determining how they were going to take this money from you. My second question would be WHY?

Why do they require this $15k escrow??? Seems pretty excessive to me. What is insurance for? There were a lot of "fill in the blanks" with different numbers.. So I can't see if it seems like a fair deduction. They were a little vague in the compensation "Exhibit B"

They just can't make a "blank statement like "

1. ______________% of the Carrier's Net Revenue after all applicable
reworking, delivery and dock charges as defined in Exhibit C, and interline
splits for the full and proper completion of the delivery of freight​

(where applicable)."

They must be specific.. Let's look at Exhibit C.. It deals only with inside metro and outside metro deliveries.. is that the only possible source of income there is? Do you get 100% of your detention time? how about layovers? Your fuel card isn't covered at all.. how much they can charge you per transaction, and when they can take it back. They do say they can take 15 days for them to pay you after you turn in all the required paperwork..

I'm not getting a warm and fuzzy about these guys... that $15k sent up a big red flag with me..