Nationalease

I was thinking about leasing also in 2007 when work was booming for me, it ended up where cost was more than running two trucks with payments out right with maintenance included.

Your idea is not a bad one, just more expensive.

 

BoyWander,

I was thinking about your idea a bit. What if a carrier were to offer you a truck to use. You would use their authority, but run it how you want to, book your own loads, etc... Insurance, plates, highway tax, drug consortium, UCR would come out of your settlements (about $210/week). $0.30/mile would go into a truck replacement fund (if you run 100,000 = $30,000) and every two or three years you would have some say so in truck replacement. $0.30/mile would go to the owner. (15 for repairs, 15 for him).

The idea would be for you to be as independent as possible including filing your IFTA, doing as much of the billing and paperwork as possible. The carrier would have to do some leg work as far as enrolling you in a drug consortium and keeping your logs on file, making sure your driver qualification file is set up, etc... and would be sticking their neck out considerably, but also have a good chance of banking $200-$250/wk off your truck for their trouble. I don't know, just brainstorming. It seems like in this type of arrangement you would legitimately be an independent contractor, but that is always a concern as well. It would come out to $210/wk and .60/mile, you would also be charged any IFTA, NYHUT, KYU, New Mexico weight distance out of your settlements. and you would of course pay for fuel. But you would be getting authority, plates, insurance included. Seems like you might be able to arrange something like this.

 

That sounds like a decent deal

 

I may be overlooking some things, but basically it would give you the full O/O experience - the risk. And frankly, I know more than a few guys with trucks who aren't making money with them might just give you a shot. You would have to convince them not only you are a good driver, but also can book your loads and manage your business. I guess that part of the risk would be on you, the owners risk would be in repairs on the truck, but if it's someone who already has trucks he is already taking that risk. At least with this setup, he is guaranteed fixed costs + 0.30/mile.

I figure the more you can do as far as keeping up to date with drug consortium, UCR, 2290, plates, driver qualification file, maybe even setting up a joint checking account for the broker's checks to go to, and setting up a 2 year CD for the truck replacement fund, and maybe another checking account for the maintanence fund, then each week you would put 0.30/mile into the truck replacement fund, 0.15/mile into the maintanence fund, and send him fixed costs (about $210) + 0.15/mile.

The more he can just collect his money, and not have to get involved too much unless the truck needs repairs, then the fairer deal you should get.

 

The only trouble with a deal like that is the driver still has no skin in the game if they decide they want to drive 350 miles out of route to "stop by for their sister's wedding" (or insert any excuse here). Until you KNOW a driver you casn't just trust that they will do as good as they say they will. Ask G/MAN about hiring drivers who were clean cut and talked a good game only to end up costing him $$$$ and him wishing he'd never hired them.

 

That was suggested early on.

And he pretty much shot it down immediately.

I know a couple folks that work under a deal like this.

They run the truck as their own, doing rather well on percentage.

True, they don't have a "vested" interest in the truck and could walk away with no issues on a moments notice.

But they also have the total integrity that they truly see the truck as their own. Success AND failures.

 

if the driver drives 350 miles out of route, he pays for the fuel and the owner of the truck gets paid those miles, same as loaded miles. I guess you didn't read the deal I suggested.

This type of deal definitely wouldn't be for just anybody, I would have thought that was implied. And even the "right" person would have a tough time right out of the gate, just like a new owner/op. But the owner's profits are locked in. Sure he could get screwed by the driver tearing up the truck, etc... but isn't that the risk you take with any driver arrangement ?

 

Windsmith get's paid 25% of the truck, that's totally backwards of what I suggested. under my plan it is the owner who gets the fixed amount. The driver is going to be paying the fuel, the driver is going to be paying the insurance, tags, UCR, 2290 in a convenient weekly amount. The driver is going to be paying the fuel tax. Basically, running exactly as you do, but rather than paying repairs as they come he will be paying it to the owner on mileage + a tad extra. this driver would have operating expenses by the mile just like you, plus just a bit extra. His success would be totally determined by his ability to book loads, make deals, and get it done. just like you except he foregoes unexpected repairs in exchange for a set mileage charge. Do you get it yet ? Basically, if you convert the weekly $210 to mileage, add in fuel, the 0.30/mile truck replacement, 0.15/mile maint., and 0.15/mile to the owner. This guy is going to have an operating expense of $1.30-$1.40 depending on fuel mileage, how many miles he runs, etc.... slightly more than the average O/O.

to explain it a different way, if the driver puts 2000 miles on in a week an grosses $3000 the owner gets the same money as if the driver puts 2000 miles on and grosses $6500. owner gets paid the same, it's the driver who has skin in the game as you say. The owner just has to find that mileage rate where he feels he can cover repairs and still make it worth his while. I'm sure there is something wrong with this idea, because I've never heard of anyone doing anything like it. But the reasons mentioned so far are off base, not understanding the plan.

 

Gotcha.....