The odds are in favor of the house

Discussion in 'Lease Purchase Trucking Forum' started by rookietrucker, Aug 23, 2015.

  1. Coronado1785$

    Coronado1785$ Light Load Member

    169
    85
    Jun 17, 2017
    0
    Everybody makes good points. My issue is companies wanna pay 1.20 mi when they got the load for 4.25mi.
    An honest lease will show the driver a rate con . Then let the driver have a percentage if that rate.
    Companies dont wanna pay % if they did and the driver saw the REAL rate of the load then they would no longer do lease programs.
    The problem is companies wanna do lease prog to be more profitable because the lease op his shouldering all the debt to pull the load for a fraction of the rate. No company out there wants you to get rich but to only pay the truck off.
    Personally the amount of money companies are making off lease drivers there is no reason why company drivers dont make more. The only reason company drivers dont get a raise is because if they do lease ops will go back to being company drivers. Fleets dont want that eats into their profits
     
    RBPC, Blue4ever and DSK333 Thank this.
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

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

  3. MysticHZ

    MysticHZ Road Train Member

    5,535
    5,028
    May 28, 2010
    0
    Actually it's not that hard to figure out. The large carriers are working off of contracts. Each lane for that customer has a contracted rate. Some lanes pay well, some lanes pay crap. But if the carrier wants the contract, they eat the crap lanes.

    Now, if you dig through the quarterly reports you will find that dry van carriers sit right around $2.00 per mile for loaded miles and run about 10% mt. Basically they track the averages. Sort of like a mutual fund. As opposed to a single truck owner ops, who operates like day trader focusing on the big score.

    So a lease op gets $1.20 mile loaded and mt. Giving them a loaded mile rate of a $1.32 with 10% mt miles. Throw in paid tolls, IRP and whatever and a lease op can be around $1.40 in total compensation.

    That's 70% of the load. What's Landstar paying?

    The problem is the $2.00 floor.
    There's just no opportunity to do better. But you won't do any worse
     
  4. Coronado1785$

    Coronado1785$ Light Load Member

    169
    85
    Jun 17, 2017
    0
    Sounds bout right. At 2.00 i seem to break even. So i try to clear 2. and thats not easy. It seems every broker out here pays 2.
     
  5. RandomTruckerGuy

    RandomTruckerGuy Bobtail Member

    40
    22
    Apr 10, 2018
    0
    All this talk about lease operators essentially paying the truck note for the carrier is short sighted in my opinion. Company drivers pay that truck payment as well its just not out in the open.
     
    Caseli and scottied67 Thank this.
  6. kanidana

    kanidana Heavy Load Member

    738
    622
    Aug 21, 2010
    Mesa, AZ
    0
    This is all obscure nonsense, the only thing that matter is numbers to the bank account after expenses and taxes, really? 401k, company insurance that you pay for at a discount, the social security matching, fuel costs covered, what does it come to in the end? But, there are benefits to running your own show that aren't monetary, but have value none-the-less. The arguments often ignore this fact.
     
    IrreverentCrawfish Thanks this.
  7. Robert85006

    Robert85006 Medium Load Member

    349
    384
    Aug 20, 2013
    Southwest USA
    0
    Very true. I used to run my own show, 100% my own authority. I'm not a control freak, however, I'm very good at business negotiating. Non-monetary benefits such as being able to take as much time off as you can afford (and your operation afford) is huge. Being able to make equipment changes to suit your needs is another plus. Taking pride when you have the pink slip to your truck in the safety deposit box is priceless.
    I completely agree there are several benefits to doing your own thing.
     
  8. BoyDawg

    BoyDawg Bobtail Member

    7
    9
    Jun 24, 2017
    Mississippi
    0
    doing a lease is always a trial and error for the driver. some wants to make money. Some want to make enough money. Some want to make money and not work. lol. it depends on the driver and situation.
     
  9. 2duisperyear

    2duisperyear Light Load Member

    221
    197
    Nov 6, 2015
    Okland Co , Mi
    0
    Its possible , not optimal . Not everyone has credit score or whatever to jump out into the deep end. If you can prove lease has never enriched someones life i am with you guys 100%, if it has then just point out pros and cons
     
  10. 2duisperyear

    2duisperyear Light Load Member

    221
    197
    Nov 6, 2015
    Okland Co , Mi
    0
    Just keep it postive, best way to go is save money build credit , finance a truck
     
  11. weirdpuckett

    weirdpuckett Road Train Member

    1,012
    497
    Jul 14, 2010
    0
    Is that how you see it? The company hasnt created a thing in lease purchase arena that comes even close to "competing".......what they have created is a lucrative dumping ground for their depreciating assets, and a high probabilty that the victim will fail and repeat the scam over! Lovely......
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

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

  • Draft saved Draft deleted