BEST LEASE PURCHASE??? (to head me towards ownership)

What about CRST Malone? They have a lease purchase and you can choose your loads and even get your own loads from any source available. I live in Detroit area and I am thinking there is plenty of work for flatbed. I have heard all the bad...anyone have anything GOOD to say? I don't pay rent, so any money I make will be banked and go toward my savings.

 

Thanks in advance.

 

Still have not heard from anyone, is there anyone out there? LOL

 

CRST Malone is the best of the companies who LP a truck, i personally do not like to LP because there are many things that can go wrong, but if you are decided to go this way, CRST Malone is the right one to go.

 

Schneider is better than Malone if you ask me. Both are pretty good though. Neither are typical dumb ### L/P Billy big rigger deals.

 

I'm glad a few people in this thread gave useful advice. To OP heres something to remember about the 2 or 3 big trucking boards: Most of these guys are truckstop cowboys who make jack. Most have never and will never do anything because theyre scared and it angers them to the core when others do. These are the same guys who sit in a truck stop half the day talking smack about other drivers, especially new ones rather than help or just shut up. Losers. Honestly you only get useful info from 10% on any trucking board. One good way to tell is people with ZERO experience in something talking about it and insulting you personall yfor asking.

Lease purchase: i worked for a driver running teams with him. He was my best friend and worst enemy at the same time heh. He lost and is losing his ###. Some of it really bad luck (engine rebuild after a few months in the truck.... 18k). But he should own the truck in another year. low
How the company is screwing him:
Maintenance. Required to use company shop and they have ridiculous rates. $400 for a service that costs aa little over 100 at the truck stop etc. A few k a year likely.
.93 a mile + .24ish fuel surcharge right now. A lot of these companies screw you on fuel surcharge passthrough. Its how they make their money..
It is VERY hard to make money with that rate.

How HE is screwing up:
Not good with math....
24/7 idle. Literally never cuts off his truck. He isnt good with math (or money) so doesnt get the $$$$ that costs him. Of course that cost went down running teams. But solo it is $$$$$
Takes truck into company shop at the drop of a hat. Doesnt even carry tools or hoses (im guessing a few grand a year there)
Out of route. We were on a dedicated run indiana to nc. He prefers a route that is a TINY bit longer (50 miles). Thats 7 gallons at $4 x 3 a week. 84 a week right there out of pocket.
He literally drives his truck doing errands at home. Figure 50 miles a week. 7 gallons X 4 = 28 a week.
He used to run some Heavy loads that look great on paper.. til you figure in 5mpg. Finally convinced him to stop running them.
There was ONE upside to this route. There was one truckstop near nashville with great fuel prices.
I never saw his settlement just heard and was getting out of the truck asap so didnt push but i dont think he really understood it and he got pushed around a lot. The company doubled up his truck and maint payments when we switched to teams and blew him off when he tried to get it changed back. Their argument was "it has a lot of miles". I told him to tell them "YOU sold me the thing. and it has a NEW engine.." he didnt.
In 4 months he needed 3 jumpstarts (600). Had to have hoses replaced on the road twice ($1000+)
Had it in the shop for water leaks twice (same leak)
I pulled the wires on the pigtail because they apparently only run the 5th wheel all the way back.. and he didnt inform me of this or why til afterwards. Im thinking $50 repair there.
His lease payment on an old freightliner was 350 a week.

It probably sounds like the little extras didnt cost much but thats the thing about running a business. Every penny counts. I'm sure there were 20 other things on the settlement i didnt see.

IMHO and only my opinion the secrets to potential l/p success are:
Watch your costs. Fuel and otherwise. That hour idling at the shop on the cell cost you 4 bucks. Sleeping with the truck idling instead of a comforter when you can = $30 a day minimum.
Maintain your truck and carry spare hoses, belts, tools, lights, tire.
READ the fine print!! They nail you with little charges like their shop charges and "addons". That stuff will eat you alive.
Remember your Tax and insurance costs: Because youre a trucker you can write off ungodly amounts. But remember they are no longer paying half your social security. You no longer have unemployment. If youre SMART you'll incorporate asap ($400 or so). Corporations pay a MUCH lower tax rate. Only pay yourself what you need leave the rest in the corporation.
Do not view l/p as a means to own a truck. View it as a way to have the freedom of an o/o. They WILL try to drive you out of the truck. This company actually seemed to love its employees at least in the "try never to fire one even if theyre incompetant" way. But - they had released this truck at least twice and they were doing everything but slaughtering his miles. But that may have been the account.. they could not afford to lose it.

The upside as i see it to lp: Youre an o/o. dont let people tell you differently.. yes you have obligations. But in the end if you're willing to take the hit you can refuse loads, you get first choice on loads over company drivers. It's really "Your" truck if you want. You're learning to run a trucking business (an o/o is a businessman who drives. a company driver is a driver). You go home when you want.
The downside: Everyone is out to get their hand in your pocket. Everyone. You cant really "just quit" unless you werent committed in the first place. You have to be a driver- that means not sitting on your ### in truck stops or only driving 8am to 7pm (truckstop cowboys). I havent driven less than 3k a week since i left my starter ocmpany long ago. THAt is how you make money. You will lose your ### running 2000 or 2300 or whatever. You really need to run 3k to make money. 2300 and you'll break even or buy enough to eat on the road.
Business. You do your own taxes. You have to keep your own books (you really trust the guys you're leased on to do your books for you??)

I'm probably going to do it myself for the freedom. I hate being a dispatchers ##### if he chooses. I'll make less to have some freedom. Now time to go read more on decent l/p's. From this thread i see crst and risinger. Though ive done the math on risinger and its a b***** to make money on their pay per mile.

 

If you are going to do a lease purchase, Malone probably has one of the better ones. Malone also pays percentage and has few company trucks. If you do a lease purchase from a carrier that has a lot of company trucks, you may not get the runs or loads the same way as you would if you run for a carrier that only has owner operators. There is a difference between being an owner operator and a lease operator. If you decide to do a lease purchase, you should read the contract very carefully. Don't be afraid to challnge anything that you don't agree. If you can't get the company to change something that you don't agree, then it is better to walk away. Most leases require mandatory maintenance contributions. With some leases, you will lose anything in the maintenance account that you don't use during the term of the lease. Some will allow you to use the maintenance money to buy out the lease. So, it is imperative to read every word in the contract. You should understand all the deductions and should know the average annual revenue of others who do a lease with the same company. I would sit down and put a pencil to any contract to make sure it makes sense. You should know where your breakeven point is on a lease. In general, most leases are not in favor of the driver. If you exercise some discipline, you should be able to save enough money to buy a truck using your own financing. You will pay out less and actually own the truck at the end of the payment cycle. When you lease a truck you should expect to pay out at least $2,400-3,200/month to rent your ride. You can take save what you would pay in a monthly payment to use as a down payment and buy a truck. You can buy a truck for less than $1,000/month. One reason so many fail with a lease purchase is due to the high payments. When the economy is struggling or business is slow, it can be difficult to show a profit and make those high weekly payments. When you lease a truck from your carrier, you are basically a slave to the truck until the lease is completed. You really have no freedom wheh you lease a truck. Freedom comes from owning the truck. To me, I would prefer to remain a company driver, save my money, clean up my credit (if there are some dings) and find an affordable used truck that has a low monthly payment that allows me to make a decent living. I would rather have a low payment where I could afford to take a few days off from time to time, rather than being a slave to a lease payment. Some lease operators are on forced dispatch. There is no freedom when you are on forced dispatch.

 

Thanks Gman i know all that thanks to you and driving with an l/p driver. I may not qualify for malone anyway as they require flatbed experience in nc so i've applied at aaa cooper for now. My original plan working for my buddy teaming was to save money for a truck but that didnt work out. And i dont want to just jump into another job and end up with a record that looks like i'm a jobhopper. Im gonna cross my fingers about crst and if nothing else ill just go back over the road for 6 months and save up 10 grand.

 

CRST Malone will train drivers in securement as long as you have sufficient driving experience. They cover securement during orientation so you don't necessarily need flat bed experience prior to going to work for them.

 

I run 2300 and take home 1200 a week . You dont have to run 3000 to make money not in my opinion . With the economy being the way it is no sense in running your butt off if there isnt a load . alot of drivers run 65 then sit for 4hrs getting unloaded or sit for a day waiting for a load. Might as well save the fuel take your time. Last year i made 152,000 on 104,000 miles i averaged 21 2300 a week if im lucky.