Hello. I just wanted to briefly counter some of the negative connotations that seem to go along with leasing a truck. I am relatively new to the industry, having been on the road since March 2008. For the first 3-1/2 years I was a company driver, having started out with Swift and eventually moving on to Celadon (w/ a couple smaller companies in-between).
On August 1st of this year I became a lease-operator w/ Prime, Inc. I drive a 2010 Freightliner Cascadia with under 200,000 miles and less than 1-1/2 year left on the lease. My goal is to "buy" this truck and eventually obtain my own authority. I knew the risks when I decided to become my own boss by leasing a truck...in other words, I have no euphoric expectations of making six figures anytime soon. But so far my experience is that I am making way more money than I ever did as a company driver.
My bottom line for success is four-fold: 1- managing my fuel economy (which is the #1 variable operating expense). 2- being consistent with conducting preventative maintenance checks & services in addition to my pre, during and post-trip inspections. 3- controlling "personal" costs (i.e. food and other incidentals). 4- Good record keeping.
I've set up an emergency savings account for maintenance issues and regularly scheduled PMs. I also keep good track of all my expenses by saving receipts and organizing them approriately for ease of access during tax time; most of what I would have to pay for taxes would be off-set by my operating expenses (itemizing deductions, writing off business expenses) so that in the end I will still be able to keep most of what I make. I keep good records of everything to ensure I get paid what is due me and to protect against cargo claims.
I get paid 72% line-haul and 100% fuel surcharge, along with other credits and benefits. I have been consistently hauling loads that average over $1.50 per mile and have delivered quite a few loads paying over $2 per mile.
Maybe I'm one of the few successes in the lease-operator world, I don't know. What I do know is that I am making good money doing it and have thus far been able to support my wife and children; I know others can have the same experience too. It also doesn't hurt to have a good fleet-manager (dispatcher)...Prime Fleet Managers are paid based on what their drivers earn, so there is a vested interest is seeing lease-operators make as much money as possible.
Thank you for your time and considerations. God Bless all you truckers out there who keep this country rollin'! "Nothing Happens Until Something Moves"
Leasing a truck can be profitable
Discussion in 'Ask An Owner Operator' started by Roman35, Sep 14, 2011.
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Slyfox9264 and zebcohobo Thank this. -
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You forgot the phone number to recuting.
Big John Thanks this. -
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I hope your 2nd 6 weeks are as good !!
SHC Thanks this. -
OK. I'll chime in.
I just completed my lease with Stevens and expressed my option to buy my truck. I now own it. I leased myself back to Stevens, since it has been working so well.
I've been around trucking for a few years, not a starry eyed kid.
So, yes, I believe there are options out there that make sense for some. Leasing worked out for me.
No...I don't know the phone number to recruiting. Don't bother asking. -
I have said you can make money leasing, I did it. Issue at the end is the value is way more than the truck is worth. Never understood why someone would take the completion bonus and use it as a down on a truck that they could go and buy the same company lease return truck for 30% less.
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Opinions on this board are way more negative about leasing than positive. I think there are a lot of drivers that make it work but see no reason to post on here. We just get the "I WAS SCRUDE!" crowd.
(yes, I have seen it spelt like that, and yes he was a failed L/O) -
Well it rhymes with dude, what did you expect. -
I have a real problem with subjective statements.
How long have you been doing this? At least a year I hope. If not your post is a bit premature.
Profitable to me would mean you did all the following after payments, insurance, fuel, fuel taxes, license, permits and all other expenses. You put away at least 0.10 CPM for repairs, maintenance and tires. You paid all your income taxes and social security. You have health insurance and workmen's comp on yourself. You paid yourself at least $50,000 above taxes, health insurance, workmen's comp and road expenses. In addition, the profit would be at least $8,000.
So is that what you did? -
john read post #4 please
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