I'll start with the conclusion
And the bottom line is: Get your 6 months of experience as a COMPANY driver, and leave CRE as a company driver to lease with ANYONE else.(central,stevens, srt, pride,prime) The 14c variable payment is usury, deceptive advertising.
Now, onto the number's.
England has a lease payment addendum called a "variable payment" equal to 14c per mile that you run. Thru awards , you can buy down this rate to close to 8c per mile.
However, on closer inspection, this 'variable' payment does'nt passthe mustard as variable. It's as fixed as you can get.
They have a nice high figue 90c rate on all miles, but when you subtract the 'variable(really fixed) ' payment, your actually making only 76c per loaded mile, ON ALL MILES.
A true 'variable expense' is something like windshield wiper fluid. Or toilet paper(depending on bran intake), or hand lotion, or rear end lube.
OK ....So, 76c per loaded mile.
other variable (true) costs.
now our payment and insurance. let's use 3000mpw.
450+175insurance is 625/wk/3000mpw is 20.8c
now your at 55.2c
ok, CRE has a fuel cap of 1.25/gal in network. They pay staa miles, and loads avg practical about 5% more. Rough numbers ,
[{(3000*1.05)/6mpg}*1.25]/3000=21.875c
55.2 - 21.875= 33.25c
that's the best you can get as a new lease/op. PERIOD.
oh yeah , there's more
1.5c fuel tax reserve, and 7c maintenance
24.75 cents to the owner operator.
oh yeah...
taxes
Now, imagine you train. your fixed expense of payment and insurance is reduced on a per mile rate to about 12c...but you have to pay for the student's wages@ $38per day, 266 a week. about 6c @4500/5000mpw.
So with a student , it's a wash. your still not getting more than 25c a mile. your running more miles, sure. But your not being compensated for the risk/effort for training.
another poster on another thread attempted to debate me on this. would anyone here like to?
Why The CR England Lease is Horrid
Discussion in 'Report A BAD Trucking Company Here' started by xiipercent, Jan 25, 2009.
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Having attended CREngland's training school recently, I appreciate your having broken the lease down. In school, leasing looks pretty good, compared to 26 cents a mile after you finish with your trainer. Even after you factor in the relatively high number of miles they give newbies, say 2500 if you're lucky, bottom line ( like most big companies ) the boys in Salt Lake are getting their pound of flesh and those who lease are taking the lion share of the risk. It seems like for a lease to work everything has to be best case scenario?
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not necessarily .
check this thread.
http://www.thetruckersreport.com/tr...-new-drivers/29046-first-year-earnings-3.html
that was my year at Central Ref, next door to crengland.
there is no way for me to do as well at CRE as I did at Central(NONE!)
Central has better trucks,better pay, better management, better yard(in slc) . as for freight...i'd say it's within 85% of england's . -
Well at Prime the truck payment is about 787.00 plus insurance and stuff plus a mileage payment of .045 per mile so it isn't much better. Payment comes to right around 1000.00 before the mileage charges. If you average over 2900 miles per week it is an additional 11 cents per mile.
Figure for England at 2900 miles
Payment 450.00
Mileage at .14= 406.00
Equals 856.00 plus ins and stuff
Figure for Prime at 2900 miles
Payment 787.00
Mileage at .045= 130.50
Equals 917.50 plus ins and stuff
Pick your poison either way it will probably kill you! -
hey , thanks for adding to the discussion.
You'll notice though, that your .045 starts at mile 1, where CRE's .14 starts at mile1. that's 9.5c on your first 2900, or $275.55 A WEEK different. I'd call that a pretty Substantial difference.
Also , make sure on comparison you add CRE insurance's # $170/wk.
So it would be 451+170+406=1027, then overeserving at 7c/mile.
Also, you guys over at Prime are on percentage(i'm told). where they Guarantee you 85c as a base. i've seen the load sheets on your qualcomm and witnessed a drive pass up a load at 1.90/mi for a 2.07 load.WOW! -
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Ok but the Prime base payment is 337.00 higher before that mileage charge so if you are off that week you gotta pay like 1000.00 where at England it would only be like 620.00
For the time I worked at Prime (and luckily I don't anymore) my average for all miles was $1.007 per mile. I will bet that 2.07 load was going to Florida or the northeast and what you should of seen was the next load after that where he would only get about .60 per mile plus FSC. A Prime guy on another website was offered a 1500 mile 5 delivery heavy juice load out of Florida the other day for about 1000.00 including FSC which is about .66 per mile.They all average out in the long run.
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wheeeeewwwwww.. i had to souble check that I did'nt say "best" management. just better than CRE.
if you go back and check the threads on when Central went to electronic logs, i decribed a story about issues with that. In the class i brought up the issue, and every week thereafter, that issue occurred.
I've always known that this industry is a tough one. real tough. but money can be made.(anyone want to think how many hours guys like dell,jobs,bezos spent building there biz?) On the thread above, I posted it.
In another note, i've been approved to buy a truck thru a major reseller. I'm running all my numbers and biz plans to see if it's a go for me. it's been just under two years since i started trucking. it can be done, just not as easily at CRE.
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