Looking at their lease program...what am I mssing?

Discussion in 'Covenant' started by NoCoCraig, May 31, 2013.

  1. NoCoCraig

    NoCoCraig Road Train Member

    2,600
    1,690
    Nov 7, 2010
    Chattanooga, Tennessee
    0
    This is the best company lease program I have ever seen. Makes me think I am not asking the right questions:biggrin_2556:
    It helps, of course, that we are a hazmat team but I just don't see a big downside here. Looks like an easy $3,500 to $4,000 a week before taxes. Any teams currently leasing want to chime in?
     
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. drvrtech77

    drvrtech77 Road Train Member

    9,978
    70,641
    Mar 20, 2010
    0
    What's the lease terms..I.E. trk payment, insurance etc.?
     
  4. NoCoCraig

    NoCoCraig Road Train Member

    2,600
    1,690
    Nov 7, 2010
    Chattanooga, Tennessee
    0
    We are not going this direction, have a truck but I was pretty shocked when I was doing the research. We used to be company drivers for USX and looked at the lease options and we were not impressed. Covenant has a calculator on their website that was pretty complete as far as costs and revenue. You could make a lot of adjustments (ie: miles, mpg, truck payment) and see what the opportunity looked like. I was just wondering if this tracks accurately with what lease operators were seeing in the real world. If so, I would have jumped all over it a year ago. Way better than any other lease-purchase program we have seen. For example, truck payments as low as $275 a week.
     
  5. CDL1968

    CDL1968 Medium Load Member

    345
    206
    Sep 27, 2012
    USA
    0
    If it is a lease thru a company then that is the problem!

    There are leasing companies out there and most dealerships also have leaving programs that are a lot better and then you can work for anyone you want, wherever you want, whenever you want.
     
  6. NoCoCraig

    NoCoCraig Road Train Member

    2,600
    1,690
    Nov 7, 2010
    Chattanooga, Tennessee
    0
    Yes, I understand and agree with you. It is just that this is the first company lease I have seen that seems reasonable. Pricing on par with Lone Mountain but zero down. Just never seen anything like it as a company lease.
     
  7. krpv

    krpv Light Load Member

    64
    6
    Oct 26, 2012
    0
    This is the info I got from Ken who's in charge of the lease program 2 weeks ago.

    .10 per mile maintenance
    11$ a week highway use tax
    17$ a week qualcomm
    7$ a week insurance
    27$ a week per driver occ insurance
    25$ a week physical damage insurance
    50$ a week warranty ( think one of the warranty's is for the engine)
    95$ for 8 weeks warranty
    400$ a week lease for an old international (all they have right now is old internationals)
    lease is 3 years then a balloon payment

    Dont remember some of the specifics for the info above
     
  8. NoCoCraig

    NoCoCraig Road Train Member

    2,600
    1,690
    Nov 7, 2010
    Chattanooga, Tennessee
    0
    Thought it sounded to good.
     
  9. krpv

    krpv Light Load Member

    64
    6
    Oct 26, 2012
    0
    Yeah i suppose, but in the right circumstances sounds good to me. They dont leases new trucks far as i know . Yeah wouldnt lease an old international, if they had some freighliners i would be alot more interested if they let me do an oil sample get maintenance/accident report and have an independent mechanic chk it out also would have to let me get the engine overhauled if i wanted
     
  10. fuzzeymateo

    fuzzeymateo Heavy Load Member

    760
    752
    May 20, 2013
    AZ
    0
    I'll give you my 2 cents for what it's worth. Here's how I see it, leasing a truck from a company means you will be running their freight and only their freight correct? Maybe they have the freight or the miles but they also have control of your income earning potential through dispatch. if you are that happy with the company then why not buy your own truck, spec it like a real truck and not a company truck and then lease on to the company? That way when things go sour you can leave the company and take your truck with you? If the answer is you are short on funds which is what most people will say then you probably shouldn't be doing it anyway correct? I was just thinking the other day how over the past 20 years I have seen more and more companies offering a lease purchase program. This isn't because they are trying to be nice but rather because it is a good deal for them. I personally would not want anyone to have control over me as an owner operator. If I'm paying the truck payment maintenance etc. the control would be in my hands and not theirs. I would even pay my own base plates and insurance. This is to keep their control to a minimum. Just my thoughts, I'm sure there are others more knowledgably than me.
     
  11. krpv

    krpv Light Load Member

    64
    6
    Oct 26, 2012
    0
    I only have 7-8 months exp so sure you know more than me. I agree ,i would way rather lease from a dealership, my credit is #### though so i will have to wait and save a good chunk of change for a downpayment. Someone mentioned to me after listening to a covenant investor confrence call that one of there most profitable areas is leasing and drivet tirnover is there major concern. I dont think its evil if i decide to lease from a company and they make money off me as long as were both makinh the money we want. And no one is forcing anyone to lease a truck. But yeah from the small amount of companies ive run numbers on (swift and cre so far) covenant is the only one id even consider
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  • Draft saved Draft deleted