Leasing as a team....is it good?

Trans Am.................


Just kidding,



I remember the fiasco there !!!!

 

You can make only a tiny amount more than running as company drivers ... IF about 20 things go just right, from month to month.

#1, don't lease
#2, if you're going to lease and split the pros and cons "50/50", prepare to lose a buddy at some point and one left to try and keep the wheels rolling and payments made on time.
#3, yes, a team truck can generate more equity in less time, but if the lease is setup where there is no REAL equity for YOU, then why do this? 40 cents a mile (after expenses profit or wage) split 2 ways @ 6,000 MPW, or 40 cents a mile split 1 way @ 3,000 MPW ... you do the math
#4, I'm not even going to get into the income tax and tax reporting issues that such an arrangement can yield

 

actually now i do believe there are few exceptions ....one being a company like panther you can clean up with their team rates

 

I have completed several leases including ace lease. Fuel is your biggest expense so watch your fuel milage! Your success depends on a lot of things. Fuel consumption,payments,feight raytes,employee pay scale, repair costs,maintence,permit costs,and a few more. First of all going on my past expertiance the longer you stay out the more profit you have the possability to show. Ex. First week out you wont have a full week of running in plus if you had a slow previous week you will be in the negitive ad have to catch up. Second week out you are starting to streach your legs so it will be 2/3 a normal paycheck. 3rd week is where you see a good check. 4th week if you go to take time off you might as well be a company driver because you will see 2/3 or less the possible profit dur to routing twords the house. Pay is a rollercoaster when you own or lease but you can make a great profit at it if you can manage a business well and save every penny you can. Last truck made me 96k in 6 months after all expenses and taxes were paid. As a general rule i would stay out till i had earned 8k free and clear before time off. Find a company that uses a fuel surcharge program. Next figure your operating costs (usually 65 to 75 cpm ) then your average revinue per mile not weekly but monthly ad then figure your profit per mile. Example last month my truck payment , fuel repairs, employee,permits devided by milage equils my cost of running per mile at 75 cpm cost overall.....my gross pay devided by milace that month equils $1.28 per mile then subtract so i have $0.58 cpm profit. If you can take a lease class but ignore the numbers they give on profit. I just scratched the surface here and it would take me a week to teach the concepts you will need but i hope it helps. Lease is complacated and you must cross all t's and dot all i's

 

Yes it can be done. However do it the smart way. Don't show up to orientation and at the end of the day sign a lease with the company! Go drive company for them at the very least 8-10 months to a year to see what is going on inside their doors. Keep track of everything you do as if you were owner ops and see how you do. Plus the number one reason is going to be your dispatcher. If you lease on day one and get a piss-poor dispatcher you are now screwed and stuck with an expensive truck! This is why it is very important to not lease right out of the gate.

Down the road in about a year if all your ducks seem to be in a row and you guys haven't killed each other and your records show the leasing maybe a good option then do so.

While you are keeping records you can pretty much figure on your leasing costs at about $1000 a week. This includes truck, insurance, permits, etc... Does not include fuel, scales, breakdowns, maintenance, food, hotels, medical insurance, tax accountant etc... Make sure you are taking account of all of these expenses or it will be a hell of a surprise and you won't realize it until a month or so after you signed your life away! Also be sure to account for over mileage. You will be charged over mileage especially as a team and it is costly. Can be upwards of another $600-$800 a month!

 

What happens when the "team" decides to break up?

Who gets the truck? Will either of you have the cash to buy out the other?

Mikeeee

 

The company you are leasing from will only let one of you be on the contract.

 

What's an Ace lease?