What am I missing?

Discussion in 'Lease Purchase Trucking Forum' started by dvwii, Mar 7, 2014.

  1. njwoods

    njwoods Bobtail Member

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    Sep 8, 2013
    0
    Of all the leases I've seen, I think Celadon has the most reasonable. Don't have all the numbers in front of me, but do know they were charging 20 cents a mile for lease payment. That way if your'e down, you do no miles, you owe no payment. Can make lease longer, but helps keep you afloat
     
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  3. rodknocker

    rodknocker Road Train Member

    1,242
    582
    Dec 18, 2008
    Southeast
    0
    No company has a good lease package. Only the rookies claim to be making money at it.
     
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  4. Raiderfanatic

    Raiderfanatic Heavy Load Member

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    Jul 18, 2010
    Hutchinson, KS
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    Why is the FSC so cheap? You wouldn't get the actual FSC on each load? That right there tells me they are bending you over. Any company that doesn't give the entire FSC on the load to the O/O or L/O, then you should bounce. You are paying for the fuel, not the company. You should get every cent of the fuel surcharge.
     
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  5. Toomanybikes

    Toomanybikes Road Train Member

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    3,113
    Apr 8, 2009
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    Naw, I think your numbers are better than most.

    In your example you got $250 for maintenance. I don't know if that is an estimate or security deposit or what? I expect it is just an escrow payment and you pick up the balance. As such you should know most fleets average $.15cpm for maintenance. Since these lease contracts restrict the lessor as to the purchase of maintenance to their approved shop and not your in house shop maintenance averages over $.20cpm in these agreements. As in your example 2600mi x .20cpm = $520

    Subtract that from your the difference from estimated maintenance: $520 - $250 = $270

    Subtract that from you $594 take take home: $594 - $270 = $324

    Furthermore, since you are now independent contractor you have to pay the overhead for yourself as employee. A general rule of thumb is each employee costs the employer 33% more than the employee's actual wage; unemployment insurance, FICA, Social Security, workers comp. insurance, and the like have to payed by the employer and now you get to pay it yourself. As such divide you remainder ($324) buy 1.33%: $324/1.33% = $243

    And now you have to pick up your own health ins. with your $243.

    That is why leases fail and lease/owner always complain they got a lemon of a truck.

    $243/2600 miles = .09cpm and no insurance!
     
  6. andre

    andre Medium Load Member

    336
    161
    Feb 10, 2008
    Jacksonville, FL
    0
    Ouch.

    After talking with others and reading what others are going through on here, I figure I have been pretty lucky on my lease:

    last week -
    Fuel -
    124.80 gallons - $248.35
    51 - 101.49
    5.9 - 11.74
    110.60 - 220.09

    OCC insurance - $38.62
    bobtail insurance - $8.31
    DOT inspection - $1
    Collision Insurance - $31.96
    ComData card fee - $1
    Qualcomm - $12.50
    Tractor purchase - $251.01

    Escrow is maxed out now at $2000, but that was an extra $100 / week for the first 20 weeks.

    For tag, they suspended my truck payments until I paid it off at $250 / wk, then just started doing truck payments again after I paid for the tag. It was a little more than $2500, something like $2750 or something.

    15% of my check is put into the breakdown fund.
    If we fuel at Pilot/FJ, we get fuel at $1.99 / gallon. If not, we are on our own.

    Its not a great GREAT great lease, but so far I seem to be making it.

    Pay is by the load, not the mile...
     
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