The correct formula to be an O/O

Well, it's probably because if you're going to make it you need to have at least basic business acum and a rudimentary understanding of taxes. At that point you are already beyond what ATBS provides you for the money they charge.

 

One of the things to remember about leasing vs. running company is you are not an employee and Swift doesn't have a vested interest in the truck the same way they do when their name is on the lease. If you want to do more than make the truck bills, it is up to you to do it. Swift will not do it for you.

Most of the time, when you see people sitting around the gossip tables, they are either company folks or lease people who think everything should be just handed to them. They sit around moaning about not making money rather than go to the window and ask what's available. They turn down loads that get them out of a bad freight area because they think they're too good to run a 300 mile load. They refuse to grab a local delivery so they can have the trailer. And when they fail, it's all Swift's fault.

There are notorious slow times every year for freight. If you are thinking about going lease, wait until at least mid February before signing. Run your butt off as a company driver and save a couple Gs just to have on hand. Go through the slow after holiday season as company and then sign when it picks back up. You don't want to be in a brand new lease (even if it's a used truck) during the seasonal slump.

Once you sign that lease, put money aside for repairs, maintenance and slow times. I allow Swift through IEL to hold 10cpm back each pay period. That money is used to cover any lease or other fixed payments when I either take time off or when freight is slow. If you choose to lease a new truck and use this money wisely, you will have upward of 20K sitting in your maintenance reserve when you exit the lease. No, it does not gather interest. But it's your money to use either for your own purposes, to place a down payment on another truck or to use as part of the purchase for the truck you have, if you choose to purchase at the end of the lease. All of your over mileage will be returned to you should you choose to purchase.

Financing for purchase will be done from an outside source. This will be no different than purchasing on the open market, except you know the truck, its maintenance history and where all the miles came from. You know whether it has been abused or in a crash. The purchase price from IEL (or whomever actually holds the title...which could be the manufacturer) will be up to 60% lower than purchasing on the open market for an identical truck with the same mileage. That depends on model and demand for the truck you have. Purchase prices are prenegotiated with the title holder before IEL even gets the truck. Therefore, if the vehicle holds its value better than expected, you can get a very good deal. As long as you take care of it. Get lazy and neglect it, and you will either buy a pile of junk or turn it in and pay for the repairs out of your maintenance fund.

My point? Take care of your equipment. Pay $40 every other week or so and get it washed. Get your engine steam cleaned. I have over 250K miles on this truck. Open the hood and you are greeted with what looks like a brand new motor. It's a lot easier to spot problems on a clean motor than a nasty, greasy, filthy used to be red engine. Mechanics like it better, too, and will respect that more than being faced with a grimy dirt pile. If you are going to lease, show some pride. You don't necessarily have to trick it out, just keep the exterior clean. Customers like to see clean equipment. They figure if it's clean, it's also maintained. It actually does make a difference in how you are treated at your customer's facility.

Okay, I've rambled on long enough for now.

 

Neither does putting money in a bank these days, so that is no longer an excuse for "saving your money." You just have to SAVE.