ok first off im a student at a truck driving institute that also has a sister company D.S.W. or Digby South West, At some point id like to be a o/o, dsw has a lease program. I talked to the recruter and he gave me a couple pages with a bunch of numbers so i will just throw them out and see what you guys think.
these are the cash flow projections o/o non trainer
these numbers are based off of the min mi. is 2500 mi a week
total revenue per week is $3,516.34, per mile 1.407 and annual is 182,850
direct fixed expenses 569.47 per week, 0.228 per mile, 29,612 annual,
direct variable expenses (based on mileage)
1,991.38 per week, 0.797 per mile,and annual 103,552
mileage pay rate dispatched miles per week at 2,500 a week min.
dead head % is 7.5, loaded mi..92cents, empty is .81cents
extra drops is $35 per drop
fuel cost out of rout mi. is 8%, mpg6.5, doe fcpg is $4.20(company buys fuel in bulk), %of miles out in west coast 50%
lease info this based on volvos kinda like what swift has, leased from dsw
insured value of the truck is 90,000, repair and maint.reserve ded..10 cpm
truck payment per week 450.00, atbs accounting service is included
i have a feeling that not all drivers are running 2500 mi a week would it be wise for me to pocket that 450.00 a week while driving for them as a company driver and use it to buy a truck or what do you guys think?
Let me know if this sounds good
Discussion in 'Ask An Owner Operator' started by henry, Mar 29, 2009.
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First off, bad idea for any newbie, period. I highly suggest you get out there for the first year atleast, and drive company equipment.
I've seen soooo many new guys buy trucks, only to tear them up, crash em out and so on, and be screwed for the rest of their career.
Atleast with driving company equipment for a while, if you do happen to have misfortunes such as crashes, your not out anything except possibly a job.
Unless your perfect, and you already know it........... -
oh no way i didnt plan on just jumping into a new truck and pay for right off the bat . the company needs at least 6mnths exp in order to lease on with them i planned on waiting about a year but i was asking when the time does come around whould it be a good or bad i dea to lease with them based on the numbers, or just hold out save my money and buy a truck
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I have never leased purchased a truck from a trucking company so this is not coming from personal experience.
There are lease to own appliance stores out there. They sell TVs and such. They are the worst possible places to buy anything. Very expensive over the long run. They prey on people who lack the economic forsight to save money and pay cash. Banks are in business to loan money. Borrowing money to buy something from a bank is a better value then leasing to own. The Company is borrowing money from a bank and then adding a cost to you and getting you to pay for it. It cant be a good deal. If the company has two trucks wanting a load and one is a leased truck and one is an owned company truck, the company will give the load to their own truck. So I dont see where you get ahead that way either.
Again, I could be missing something as I am just a company driver but I do not see any advantage to a driver from leasing a truck from a trucking company. It seems to be all one sided and that side is the companies. -
And if freight doesn't pick back up, you'll be lucky to get that 2,500 miles a week.
Lease deals are generally never a good idea.
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