Leasing a truck can be profitable

An L/P can be a great way for someone that is NEWER (not new) in the business and has a business head to make better money than being a company driver. Problem is you have NEW drivers that never owned a lemonaid stand jumping behind the wheel after signing a contract they didn't read and then telling everyone they got scrude.

 

Honestly Numbers that is why I put the one year part in. I started to research but decided you already had, so I took your info to be the truth.

The trully sad part is he has no idea why he has that extra money. In addition, he is oblivious to the fact that it isn't even his money. You can see the coming problems. It could be a breakdown or the IRS but I hope he is banking all that extra he thinks he is earning.

I've been there, done that and have the scars to prove it. You think you're doing well until you figure out you were supposed to have saved a chunk of that extra money.

A substantial cash flow aka big bucks passing through your hands does not equal big earnings. This is probably the hardest part for a new owner operator or lease operator to understand. As an employee what reaches your hand is yours. As a businessperson what reaches your hand belongs to the business first and you second.

If you haven't calculated your cost of operation which includes your wages, you are in trouble. You should pay yourself a wage and bank the rest if you are fortunate enough to have any extra. Everyone gets their money set aside before you, the owner, gets yours.

 

The truth is if you zero out on taxes you are really not making any money, unless you have some unsual deducts, like 15 kids. Dollar for dollar deducts are not gaining you anything.

 

Pulled directly from their website...

"How much are the truck payments?

Tanker: Starting at $740 per week, truck payments will vary based on the specification and age of equipment. This includes physical damage insurance, Qualcomm and other safety equipment, if equipped. As the truck ages the payment will drop slightly.

Flatbed: Starting at $740 per week, truck payments will vary based on the specification and age of equipment. This includes physical damage insurance, Qualcomm and other safety equipment, if equipped. As the truck ages the payment will drop slightly.

Refrigerated: Starting at $798 per week, truck payments will vary based on the specification and age of equipment. This includes physical damage insurance, Qualcomm and other safety equipment, if equipped. As the truck ages the payment will drop slightly"

Plus they charge you $0.04 PER MILE, for every mile you drive on the truck??????

Not sure how at $1.50 a mile you are making any money?

Also, from what I read, you will not OWN the truck at the end of the 3yrs???? Kinda crazy since you will have already paid in $124,800.... which is about $5,000 more than what the truck cost NEW from a dealer

Anyways, I do wish you the best of luck and hope all the good keeps up for you, but for your success story, I can tell you of 5 guys i personally know from PRIME that had many, many, many weeks where they brought home a negative balance!!!

Then they go on to say..
"From June 2007 to July 2008, the weekly average miles per dispatched truck were 2,739 for the flatbed division, 2,582(solo) / 5,000(team) miles in the reefer division, and in the tanker division 2,220 miles. The weekly average revenue per mile was $1.55 for the flatbed division, $1.60 for the refrigerated division, and $1.84 for the tanker division. Weekly average revenue for that same period was $4,245 for flatbed, $4,131 (solo), $6,750 (team) for refrigerated and $4,048 for tanker"

Ummm, it's 2011, not 2007 which is why they tell you about when freight was moving good, not 09-10 when crap hit the fan in the industry LOL

 

$740.00 per week?

 

Come back in 12 months and give us an update. If you are around.