The Anti-Lease Purchase Program

Does that include insurance?

 

Keep checking!!! What all are you including in this figure above the $300 filing fee? Well was $300 a few years ago, but surely it has not changed that much.

 

Fed DOT number is $300
2290 is $550.

You will also need to do your Unified Carrier Registration (UCR) Program. Fees vary here, but for 0-2 trucks, it's $76.
http://www.dot.state.mn.us/cvo/unifiedcarrier.html


There are others that apply.

That $5500 seems high if it does not include insurance and low if it does include it.

 

It costs $300 for the filing fee to get your authority. You will need insurance and registered agents in all states where you will run. Perhaps he is including the insurance premium in his cost of getting authority. You can usually get insurance for about 20% down and then pay monthly payments over 9 months. There are a few who may cover you with the first month up front and then monthly payments.

 

My comment was not as a result of talking with you. It came from a discussion that lead from following up on that 2000 Kenworth T2000 that I had shared with you.

The person I had started to get information from on the truck had passed my information on to another gentleman who contacted me about leasing that truck on with him. (same guy who is selling it is leased to him as well).

It was some realization that I had on the way home that had me run the numbers on that.

Your rates that you put in another thread, (87% and 90%) are a lot more reasonable to lease on to than the 84% (my trailer) or 74% (his trailer) that he was offering.

 

When I spoke with progressive about insurance, there was a sizable discount if I were to pay for the premium in a lump sum. We are talking $6000 annually in one payment vs $8000 for monthly payments.

Enough for me to take notice. That discount pays for me to pay a company to do my paperwork for authority at $1500 for state and Federal numbers to include all IFTA, UCR and DOT / MC numbers as well as base plate and vehicle registration. I would still have to pay the actual registration plate fee.

 

You are thinking about the MC number. There is no charge for the DOT number, but you must have the MC number, which is your authority, before they will issue the DOT number. I believe they now issue the DOT number the same time you apply for authority. There was no such thing as a DOT number when I first got my authority.

 

You are correct.

 

That is a very broad difference in premium, MNdriver. I would check with some other insurance companies. In fact, I would see if you could find an insurance agent who writes for a number of other companies who can shop your business. I shop my business every year just to keep my insurance company honest and my premiums low. I have seen thousands of dollars in difference of premium. I know several friends who run their authority and Northland has given them the best rates. If you need a name PM me and I will see if I can find a name and number.

If I were you I would at least try to do the paperwork myself before paying someone $1,500 to do it for you. Most of the work can be done online or by mail. You can go to the fmcsa website and fill in the blanks to get your authority. It usually takes from 3-6 weeks to get it back once you apply. You can apply for your DOT number at the same time. You will need your insurance to be in place before authority will be granted. You will also need registered agents in every state in which you plan on operating. OOIDA can help with that at no charge if you are a member. Once you have your authority you can get apply for your title and apply for your base plate and IFTA accounts. Before either will be issued you will first need to pay your 2290 to the IRS and have a stamped receipt to prove that the tax has been paid. It is prorated from July through June of each year. Your state will mail the forms you need to apply for your base plates. You may also be able to download them from their website. Again, it is fill in the blanks. It may take longer waiting on the base plates than anything else. I can usually give them my paperwork and be out of the tag office within 2-4 hours unless they are exceptionally busy. Even if it took all day, it would still save you a lot of money by doing it yourself. You should spend from 30-60 minutes applying for your authority. Once that is in place you can get your UCR in about 10 minutes online. You will need to furnish all the information to get your authority anyway, so why not just do it yourself and save all that money. If you want to pay someone to do the leg work for you, OOIDA can also handle that for you for a fee. I think that it is a few hundred dollars, which is much less than you would pay this service. They also sell insurance, but I can usually find a better rate elsewhere.