Considering leasing on

Discussion in 'Ask An Owner Operator' started by Onewolf81, May 28, 2022.

  1. Onewolf81

    Onewolf81 Bobtail Member

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    I’m considering leasing on to a company doing flatbed work, my question is, if they pay for insurance only what percentage of line haul should I try to get in the negotiations?
     
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  3. Short Fuse EOD

    Short Fuse EOD Road Train Member

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    If you got your own trailer, tags, IFTA, etc 85% to you is standard. That’s them paying liability which is the law. You will likely be paying your non dispatch insurance.

    If they are providing a trailer than 73% ish is common.
     
  4. Ruthless

    Ruthless Road Train Member

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    Unless the carrier is brand new to trucking; they’re gonna tell you what is paid and you can take it or leave it. They’ve done the math prior to meeting you.


    Also, % varies with what kind of operation it is/ who finds the work & dispatches, where the work comes from, who files the ifta, who pays for plates, who has the trailer(s)/ all have implications on cost for either party and will likely have an impact on who is willing to pay for what (Via % higher or lower)
     
  5. Onewolf81

    Onewolf81 Bobtail Member

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    The only thing they are gonna pay for is liability insurance. Everything else will be handled by me. I’m thinking 85% sounds pretty reasonable. It’s flatbed work and I own the trailer
     
  6. Ruthless

    Ruthless Road Train Member

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    You pay for plates? IFTA? State permits? Manage safety and regulatory filings? Keep the maintenance file? Keep the driver file? Handle the consortium paperwork and fees? Have your own direct customers/ are the one dealing with brokers? Setting rates and terms?

    If you are doing all that, why lease on at all?

    *point being- if you’re doing it all anyway, leasing on you’re paying 15% (at 85% contractor pay) for a week + lag time on factoring receivables/
     
    Last edited: May 29, 2022
  7. ProfessionalNoticer

    ProfessionalNoticer Road Train Member

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    Try to focus on gross instead of percentage. 65 percent of 200 is more than 85 percent of 100.
     
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