Thinking about leasing a truck

A lot of people seem hell bent on leasing or buying a new truck. A motorcycle club brother of mine bought a $20,000 Kenworth through a truck sales company. It was pretty clean and he had to invest another 5K to get it up to OTR standards. NOT having to pay $500 weekly payments he was able to pay that truck off in about four months because he also got his own authority and goes through a broker to secure loads. His truck will probably be good for another couple of years and by then he will have cash to buy a much newer and nicer truck.

Deals like this are out there. You could still lease on with Swift or another company and be a true owner/op. BTW his credit is okay but not perfect and he got financing.

 

2 years driving? Just move on to a more professional company.

 

scottie, if I remember correct, you also have some issues with breakdowns. I am with you on some of this. I was also told by my DM in Cols, become a Mentor, will get more miles. For some time was doing so-so, at least averaging around $2800/mo gross take home, but all of a sudden, all that I keep getting is these short ones.

 

I will prob get the name wrong but TLHeart has a really good thread going about his L/O with Stevens. Breaks everything down and you can see how it works. I know it's not Swift but maybe it will help.

 

One advise I'll give you, dont lease from swift, dont lease from a company that they make the money and you pay the bills, find in outside leasing dealership, like lone mountain truck leasing, your job history is your creait, cheaper than swift will charge you and you got more freedom

 

Most think they will make more money when it's just the opposite in most cases. Most think about they don't hold out taxes and my check will be bigger. True, until tax time. I seen more failures than successes. The lease truck you pick out probably had 2-3 lease drivers in it before you.

Company drivers can take their truck home. Company drivers can have inverters. Company drivers can have pets. I can even pick my loads as a company driver. It all depends who you work for. Why some make the employment choices they make, I'll never know. Pretty paint jobs and a lying recruiter is not how you pick jobs.

Social security you pay with schedule SE when you file your 1040. The gooberment recommends you put back 15% to pay social security and medicare.

 

Geez! A guy asks some specific questions and everybody jumps in and says don't do it.

Scottie, most of us, myself included, told you to go back company for a while before leasing a truck. When you insisted on that, we told you to stay away from that KW you have. Again, you didn't listen. $1,000/ month?? That's about 1/4 of what I'm pulling in. Before taxes, of course. And I am a solo driver. I have no idea what you are doing. I haven't seen you in a while. I would be very inetersted to sit down with you and look at your situation in depth.

My total fixed payments with tractor, permits and insurance, total $665/week. I don't know where Blue gets this "over $700" nonsense, unless he's talking about a Volvo 780 or a KW T700. My truck is an International.

I have my honest, real numbers posted in my blog, tha I haven't updated in a while and I need to. I have been running as a borrowed driver to a dedicated account, exactly as the O/P describes. There is a good chance I will sign on to this dedicated account. Since I have been on this, my first week equalled $900. Second week $1,588. Third week $1100. Fourth week $1070. Fifth week $900...with only 2,100 miles run because I took an extra day off. This week is shaping up to be a very good week and I'll be taking most of next week off. I have the money set aside to do it and I'll be putting Girly in the shop for a couple of recalls and get the A/C fixed.

Leasing is an individual decision. It doesn't work for many because they continue to behave like company drivers. You simply cannot do that when you lease. If I don't think you're ready for a lease, I will not cheerlead you into it. However, if you choose to lease regardless of advice, I will do my best to help you be successful. But I will not do it for you, Scottie.

Bill: PM me with specific questions.

 

I would think taking too much time off would bounce you off dedicated.

Come on BL you know you want to live with a different stranger every 6 weeks!

 

What would be "too much time" in your book? I run my hours out in 6 days, go home for a reset and then back at it. Average run 450 miles. That's 2,700 miles/week plus usually 3 stops per load, not including the final drop of the empty trailer...that I get paid for. Are you trying to say I'm not allowed to take a week off about every 6 months? Do you get to take vacation time? Last I checked, Swift pays its company drivers to take time off. I'm not entitled to do the same for myself? Oh, yes. It will be a paid vacation. I saved up for it, same as Swift puts money aside for its employees to do the same.

I guess I'm just blowing the lease operator myths out of the water at every turn. I'm not working hard, I'm not teaming or training, I'm not tethered to my truck 24/7/365, I'm not broke, I'm not fighting for every penny....BUT!!! When I'm working, I'm working. I do many of my own repairs, if they are minor, I get my loads picked up and delivered on time, when I think I'm sitting too long, I make phone calls, I'm not afraid to turn loads down if they are not to my advantage...and I run my own business. I did not get into this truck with the idea that Swift was going to do it for me.

If you are going to be a successful L/O with Swift or any company, the key is to be your own champion. People who fail make a few mistakes: They refuse to "rock the boat" a little. They run their leased truck like a company truck...doing everything Swift tells them to down to fueling at suggested fuel stops. They sometimes do take too much time off. They put their foot in it and hold it there for an entire shift. They idle their fuel away. They fail to maintain their equipment. They fail to put money aside for emergencies. They get a truck because it looks good, not because it will make them money. They surround themselves with negative people who failed themselves and can't stand to see someone else do well doing what they failed at. They go into this too soon, without any idea what they are doing. They allow emotion to make their decisions rather than asking what should be the first question: "How will this affect my BUSINESS?" ......Okay, lots of reasons people fail.

But looking at other options, my fixed costs are really not too awful different from an independent with a truck payment. My payment is higher, but my insurance is much lower. I didn't have to chase financing and play the waiting game. And, I am putting money aside to purchase a 4-year-old used truck with 500K miles on it when my lease is up on this one. I will be able to lay cash on the barrelhead. Most of you would be my biggest suppoerters if I said I was putting that money aside so I can buy a truck from Arrow or some other outside truck sales outfit. Since I will be buying the 4-year-old used truck with 500K miles on it that I PUT ALL THE MILES ON and KNOW THE MAINTENANCE HISTORY ON, those same people look down their noses and tell me I'm being cheated. Even though I will be paying about $30K less for the same 4-year-old used truck with 500K miles on it that they could buy on the open market.

This is why I try to stay out of these discussions.

I will have a very nice vacation with family members coming in from around the world and when I come back, my position will still be here...and my truck will have the A/C fixed.

Life is good.

 

Injun, honey, I'm not looking down my nose at anyone, or at least I don't think I am. What works for me might not work for someone else, and vice versa. I posted what I would do if I were ever struck by lightning and decided I wanted my own truck. Doesn't mean I think L/O are dumb eejits making a huge mistake. I personally have issues with being in debt. That's my personal issue and doesn't apply to anyone else.

I do make it a point, though, to caution L/O wannabes and advise them to think it through and have a very thorough plan in place, because of the vast numbers of failures out there. I'm not sure of the numbers, but I would guess more fail at leasing than succeed. I won't tell anyone not to do it, but I will tell them to slow down!