OWNER OPERATORS or LEASE PURCHASE Stepdeck/ Flat bed/ Heavy Haul

Discussion in 'Trucking Jobs' started by Sammonsrecruiter, Sep 16, 2010.

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  1. hup

    hup Medium Load Member

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    Oct 19, 2010
    Missoula, MT
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    I understand how 26% goes to the contractor, and 74% to the truck.. and how that 74% covers insurance, maintenance etc.. and whatever's left of that 74% goes to the truck payment. But what if that 74% doesn't cover the truck insurance, maintenance, etc? Who covers that negative balance? Does it come out of the contractor's 26% or does Sammons eat it?
     
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  3. Sammonsrecruiter

    Sammonsrecruiter Light Load Member

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    Sep 16, 2010
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    The same way the balance you owe on the truck goes down when there is mone left from the 74% the balance you owe goes up. Contractors in the program average paying down $2500 a month. Some good months some bad and some average ones. The 26 % that goes to the contractor doesn't get touched.
     
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  4. SheepDog

    SheepDog Road Train Member

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    Sand Lake, MI
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    A friend of mine works for Sammons and I asked about how he was doing the other day. Heard his truck was in the shop, just after a short month but, what really got me was that Sammons gave him a loaner to use while his was being fixed,,now that is how a company should take care of there contractors right there,,good job Sammons!
     
  5. smugglinggoods

    smugglinggoods Light Load Member

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    Jul 22, 2010
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    I talked to a Sammons lease operator a couple days ago. He was doing so good with them he lived in his truck parked at there Market transport yard in portland. He tried for a hour while we were waiting to load to convince me to lease with them. meanwhile he was telling me how he didnt have a house or make any pay checks cause everything went to the truck payment and break downs.
    Seems they have fairly tight year of truck restrictions Probably to get people to lease there trucks.
     
  6. ronin

    ronin Road Train Member

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    San Antonio, Texas
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    Huh?

    "He was doing so good with them"....."he was telling me how he didnt have a house or make any pay checks cause everything went to the truck payment and break downs".

    Did you post that with sarcasm, or was he confused?
     
  7. smugglinggoods

    smugglinggoods Light Load Member

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    Jul 22, 2010
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    True story. I wasnt being sarcastic and neither was he. he was a very nice guy not new to trucking but was new to being a lease operator. Came from a company background. He had a pretty new KW nice looking truck. But for example he said he had just put 11k into repairs. From what I understood he didnt make any truck payments till this was paid. So if it took him 3 months to pay the 11k out of the 74% then he didnt make a truck payment. I guess he wasnt making much off the 26% they get cause business was slow.
    He did have nice things to say about Sammons though. However I dont believe he had the ability to buy anything on his own so this seemed like the best way to go for him. Its still just your average flease deal in my own opinion.
     
  8. Sammonsrecruiter

    Sammonsrecruiter Light Load Member

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    Sep 16, 2010
    missoula, mt
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    26% of the line haul should average $2300 per month. The average pay down on the truck is $2500 per month after expenses. Business is not slow for us. Things have picked up since Feb 2011. We have a 10 year limit on trucks when they sign on. After you are on we don't make you get a newer truck unless you change trucks it needs to be 2000 or newer. Our intention is for people to pay the trucks off in the lease purchase program. I'm confused on how it is a "flease"? No money down, guaranteed earnings if you work, the company covers your expenses to ensure you can have money and maintain your equipment, the same pay schedule as all the Owner Operators and you choose what you take and how you run. 15 people have titles year to date and there should be 10 more at least this year. $1100 in maintenance doesn't sound right unless it is across a number of months.
     
  9. smugglinggoods

    smugglinggoods Light Load Member

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    Well he said 11k in repairs.
    So I got to say this is sounding even worse then before. 26% of the line haul directly to the contractor only averages $2300? Then out of the 74% someone only averages putting $2500 to the truck. I mean where is the rest of the money going?
    If a driver averaged $1.70 and drover 11000 a month this would be $18700. Fuel may be around 6mpg since you guys only take newer trucks? This must be the big reason for wanting to newer trucks? So that would be around $7200 at current fuel prices around here.

    $18700
    less $7200
    is $11500
    less $2300 to driver and $2500 to truck

    is $6700

    Just wondering where this average amount each month goes? I mean insurance IFTA and what not would not cost any where near this month.
    Maybe the trucks average much less per mile? Or do they not get the 11000 miles each month?

    What is the cost of the average truck through sammons?
     
  10. American-Trucker

    American-Trucker Road Train Member

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    Charlotte, North Carolina
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    That's a good question since there is no set payment how much is the truck?

    And something else I just thought of 74+26=100 so what dose the company get?

    And where does all the extra money go?


    Not trying to knock your lease I hate leases but your does sound good, aside from this hear unless we are understanding this wrong?



    American Trucker
     
  11. smugglinggoods

    smugglinggoods Light Load Member

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    I am not trying to knock them either. I just want to understand why they program is so much better.

    What is the average sale price of a Sammons Lease operator truck? When you lease one do they come with a warranty and if so what is it? How about trailers? Are they payed for out of Sammons percentage?
     
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