Trying to get started.

Well it's great that you feel that way because it greases the wheels of business and makes you a lot happier as well which is a good thing.

I think the first 10% is great for fuel card and guaranteed dispatching. It saves a lot of hassles and downtime negotiating rates etc. However after that is the problem

For instance, a dry van trailer right now can be had for 3k to 5k for one that will pass DOT and be acceptable for shippers/receivers. This would be 4 cpm cost to you at 3000 miles per week and would end in one year. Figure 1 cpm maintenance forever too. They are getting 15 cents per mile indefinitely. (at $1.50/mile average rate)

The last 10% is for insurance. (Ifta is 4 days of paperwork a year (couple hours each really)) Often you pay a tag fee in addition to the percentages, but even if you don't it would be 5 cents per mile at 3000 miles a week for the year, in which case you are paying another 15 cpm or 3 times what it would cost you doing it on your own.

The point is you could run a lot more profitably and efficiently just getting what you need and limiting the services to what is most valuable for a startup or continuing operation.

 

Well you can try and sugar coat it all you want. A dry van get real that is the cheapest thing out their and I don't pull one and never have. I have never worked for anyone that had old junk trailers anyway. From your other post I can see you believe in working harder and not smarter. I know what it cost me to run my truck, I know what it cost me per day to operate.

I have seen guys like you struggling to keep it going and guys leased to carriers doing a lot better after the company takes their cut. I blow a tire I have two options I put it on my debit card or I call the company and use their national tire account and get a discount and they take it out of my next settlement.

One other thing you forgot, I get paid every week if the customer or broker pays them or not and that is worth something. I have also have paid for my own fuel with my own card while leased to someone and have used their card at times, when I have used their card I have got very good discounts at their fuel stops that saved me over $100 to $150 a week sometimes. Most carriers are dealing directly with customers 80% to 90% of the time and the other percentage is with brokers depending on the company which usually means a lot better rate. Also I have never had a company refuse to show be their billing on a load, I bet your broker won't show you his.

Not trying to get in a pissin match with you PharmPhail I just think a guy with a year or less of experience and never been leased to a company making that statement doesn't have a clue.

 

I hope you didn't take my assessment as a shot at you. It's just my general view on leasing.

My freight pays like crap because of the deadheads. I think there's a lot I can do to improve it if I used a wider variety of sources.

In general though I wouldn't want a company taking an additional 30 cpm and giving me back 5 as benefits and discounts. But that's my wiring and I have a rather large acceptance of risk. I feel you can buy a lot of tires for another $500 to $600 a week. Either way you'll still be on your own for major repairs. I'd certainly like a discount on that, but I don't know that even 10% on the repair would save me or not.

I do get paid whether they get paid or not. But if there is some question that I screwed it up causing the delay then all bets are off. I bet it's the same leasing on. I also bet I get paid for that too, but I made it ineligible for quick pay basically.

 

Thats not kinda that's totally got ripped off he paid about 10k too much

 

not all rebuilds are created equal. I've seen those prices for rebuilds but it's usually out on the road somewhere with some local shop that's bending the guy over not at home.


leasing definatly has it's benifits if you can find a decent gompany that doesn't gouge you. some do but there are allot that don't.

I started up with no money and 50gallons of fuel in my tanks. it can be done but I #### sure don't recomend it. if he bought the truck and doesn't have a payment let it sit for six months while he gets some money together. If he has a payment then lease it on somewhere and get to work and don't slow down or go home till he's got $10k in the bank at least

 

How long (mileage) did your buddy have before his truck blew up? What did he pay for it? I hate to bring this up, but if that happened to me, and I had spent twenty some grand buying a truck I would consider going to court.

If your buddy has already spoken with the previous owner and exhausted that option. He might consider going to small claims court, I think you can sue for up to $4K at small claims court, but don't quote me on that. You don't need a lawyer for small claims...

Remember this, even if he does win its no guarantee that the judge will make them cough up the cash right then and there. Instead he will probably receive small monthly payments, and worst case scenario itll take years, and tons of red tape hassle for your buddy. He could luck out, and end up with enough to cover tags and insurance on his truck, although he's still going to need a little extra for fuel and what other charges the company leases onto.