Lease operator needs honest feedback

How would it make sense?

You stated that after expenses under your current lease op situation, you're only making company driver wages. Sounds like you're barely making it.

So, if you got another truck and incurred all the same expenses plus worker's compensation, matching social security, unemployment insurance, etc, how is that going to increase your profit on your truck?

 

In addition, if you are only making company driver wages and are going into the hole by paying for maintenance related items with a credit card, you are only 1 major event from going under.

I suggest you revisit your current lease agreement and either negotiate a better rate or look somewhere else.

 

Double your Risk and adds nothing to the Reward.

You are making Company Driver wages in this deal and yet want to buy another truck and hire another driver and pay him Company Driver wages ....

So, two drivers working for Company Drivers wages with two trucks barely covering costs, with a Credit Card too, without any major repairs on an older used truck...

Let's do the math together.... 2 x 0 = ????
Then add the cost of a major expense.

Time to sell the truck and become a Company Driver.... still bet the same with much less Risk.

 

You need to sit down and list ALL your monthly expenses.

First list includes fixed monthly expenses whether the truck is running down the road or not.

Second list includes all variable operation expenses. I would include .15 per mile set aside for every mile run.

Third list includes your personal income draw plus 30% for taxes and something for health ins and retirement.

Add those 3 together and that will give you a pretty good idea what your operational costs are per mile. Add 10% profit margin on top of that and add it to your operational costs.

What does that equal? Compare it to what you're receiving per mile on average from the company you're leased on to.

Is there anything left based on the average miles you're running?

If not, you'll be broke before you know it.

 

So you are using a Credit Card to fund your "Cash on Hand"??? I would pay off the Credit Card and use it for "unforeseen expenses".... too easy to just let that CC Balance get out of control.... just my thought.

Trucks cost money.... period.

If you get a new truck, your repair expenses are expected to be lower but your monthly payment is a locked in expense much higher than a payment on a used truck.

If you get a used truck, your monthly payment is much less but your repair costs "may" be higher... so far it sounds like this used truck hasn't cost you anything but tires... unless I misread something.

No one here can answer that for you except to say "maybe".... you have data with this company and data on what it costs you to run your truck.... if you want to shop your truck around that's up to you. Never hurts to be at least aware of what the marketplace is paying for your product.

But no one here has your real historical data to help you with what to do with your truck.

 

Days when you can make money being leased to a carrier are long gone. I advise you sell your truck and work as a driver. Same money but no headache

 

WOW JUST WOW