Credits no good, this is why people are tempted to do lease purchase

Discussion in 'Lease Purchase Trucking Forum' started by thelinedriver, Dec 24, 2017.

  1. Oldironfan

    Oldironfan Road Train Member

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    So booking own loads you self dispatched? You should get your Authority it seems like. But maybe not?
     
  2. freightwipper

    freightwipper Road Train Member

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    Why?
    I'm doing very well doing what I am now.
    I get a lot of value for the 10% I give up.
    like insurance wayyy cheaper than if I got my authority, not worrying about getting paid or giving up 3-4% factoring, not worrying about audits/paperwork/permits etc they handle all that, plus aged safe mc number with 100 trucks under it with a good track record with many brokers = me being able to get bigger rates than I could vs having a single truck operation with a noob mc number.

    single truck operation with new MC number with no busniess history vs 8 year old safe mc with 100+ trucks under it and solid on time and safe business record with many brokerages.
    Which do you think can get bigger rates?
    That's why I am where I am and not getting my authority.

    If I had my own authority I'd probably earn less overall.
     
    Last edited: Dec 25, 2017
  3. scythe08

    scythe08 Road Train Member

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    This has really been a great thread! I appreciated all the info and the maturity that came with it.
     
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  4. nightgunner

    nightgunner Road Train Member

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    That is exactly why I haven't reinstated my authority! I pay a flat 15% (rumor has it, that may drop to 10%) and call all the shots. Life is too good to play the mega-carrier game again.
     
  5. freightwipper

    freightwipper Road Train Member

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    nice, glad to see someone else out here on the same page.
     
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  6. Justrucking2

    Justrucking2 Road Train Member

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    I had my authority, it is parked for the reasons you mentioned. I leased the tractor on with an expedite outfit, automotive. The rates are why I stay. I still have all of the responsibilities I had when I was running under my authority, less the headache of trying to get paid in a timely fashion and of course, hunting down loads. I tell guys up here in the Detroit area if they want to own a truck, find an old truck that has been cared for, preferably with a fresh in frame. Lease on with a reputable company and go make money. Keep your overhead low, learn how to do your own repairs. You don't need that many tools to do much of the stuff on these trucks to keep them road worthy. And don't worry what the truck looks like, a dent and ding here and there is not going to make you any less money, nor is a faded paint job. The interior can be fixed if there are issues in there, don't sweat it, there are parts out there and in time fix them. I ran with two broken seat backs for two years until I had the monies for a new set. The mechanical issues with the EPA motor nearly bankrupted me. Find an old Detroit or N-14 and don't look back. Oh, I found a set of like new OEM seats, $200 for the pair at a junk yard. They were identical to my broken ones, even had the back massage. ;-)
     
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  7. freightwipper

    freightwipper Road Train Member

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    Most important thing I've learned....

    Put yourself in a position where you'e wanted and needed.

    If a carrier supplies the loads YOU need them.
    If you call a broker on a load YOU need them.

    If you post your truck and someone calls THEY NEED YOU!!!

    If your operation requires you being dependant on someone else for freight they have the power, not you.
    A carrier or broker most often will be out to find anyway possible keep as much money for themselves as possible, you if go to them your chances of getting great rates is slim.
    When brokers and customers call you they need you, you have the power and a lot better opportunity of getting paid great.

    I'd say 90% of the loads I do are from me being called.
    If you get a call it's either a cheap freight pusher OR a motivated broker willing to go the extra mile to do whatever it takes to get their customer's load covered.
    If I'm called I'm flat out telling them if you want me to do your load you gotta pay better than every load posted, if they don't wanna pay I tell them no problem.. I tell one I'll just take one of the higher paying loads posted and yours can sit longer.

    One tool I use is posted loads that have rates posted with them.
    One day there were 8 loads from Dallas to Atlanta posted for $2750- $3000.
    Broker calls me and asks if I do a dallas to atlanta for $1600, I said no there's loads posted for nearly double that. I told the broker to look it up, she did and said I was right and if I'd do it for $3000.
    I said if I'd do it for $3000 why wouldn't I have already taken one of the other loads for $3000? lol
    Said you got to BEAT those posted rates.
    Broker said they understand and would let me know if customer can pay more.

    Point being they went from $1650 to $3000 fairly easy.

    All you drivers need to stop hauling cheap, it hurts us all in the end.
    It's not too difficult to get good rates if you use your brain a little bit.
     
    Last edited: Dec 25, 2017
  8. thelinedriver

    thelinedriver Bobtail Member

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    I think you missed my point, and yes I know quite a bit on operational cost, I know what I would be getting into.
     
  9. thelinedriver

    thelinedriver Bobtail Member

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    Thanks for that, this is the response I was looking for, I did the math and figued I would have to make at least 1.95 a mile, so no one who is leasing to purchase is paying that, so I am seeking other alternate routes now. seems like buying an older truck and going from there might be the only way to go, I am poorr but I do have some money saved. some people just dont understand what I was saying ,but only people who have been there know what I was talking about I guess. Thanks for the reply. Appreciate your wirdom
     
  10. thelinedriver

    thelinedriver Bobtail Member

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    No need for disbelieve, right now its on the fence, but I think most people feel the same way about it.
    But who are those guys making it with a LP? Are they living in their trucks with no other home expenses or is it a little of every type of person?
     
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