Thinking of leasing from penskie or ryder a few questions

[geeshock]

Ok, here it goes. I'm looking at my options to get something going and am thinking of starting out by leasing a truck. My question is this, what will the process be that I will have to go through. Paperwork, do they lease trailers, any decent brokers here in NC. Mabe even a website that can explain these things and the thousands of different questions I haven't thought of. The economy sux right now and am not looking to jump in just yet but it's getting close and I'd rather have my homework done. Are you under thier athority since they prvide the base plates. What are the cost vs potential income, etc. The reason I'm considering this route is

A.) not enough money to buy my own truck
B.) I don't see it happening with me staying a company driver
C.) My employer right now mentioned how much he saves by to havening to sink money into, say a new engine every time the truck breaks down and them bringing a new truck to keep you rolling is a nice touch.
D.) After seeing what my friend when through with his truck, I beleave my employer, lol. Actually sad, my friend lost his butt on that truck.

Eventually wanna go under my own authority but not just yet. One step at a time :)

Any help would be appreciated, thx.

[BanditsCousin]

You have to have your own authority or be leased to a carrier. They run about 500-650/wk plus a mileage charge of .08 to .12 a mile depending on which location. I've rented from both under United's authority. Penske has nicer equipment. I was spending at least $750 a week on the truck alone, if that helps you calculate fixed costs. That did not include insurance.

[geeshock]

Thats a good start. Answers 2 questions prety much. I'm sure they will answer some as well but would rather hear from the forums since I will get the great from them and some of the good and bad from you all

[GMAN]

I have rented a truck from Penske when one of mine broke down. I think you will have a difficult time making any money leasing to a carrier and renting a truck from them. I only rented a truck for a week to fulfill my obligation on some loads. I believe I spent just under $800 for the week. You can't afford to pay out that much money and make a profit as an owner operator. It will also be difficult running your authority and paying out that much money each week. They do have longer term leases or rentals that are less expensive. It isn't the weekly rental amount but the mileage that runs the cost up. This depression is likely to last for a while. Whether you lease to a carrier or run your authority you will likely be running for lower rates and have access to less freight than only a year ago. If you can't afford to buy a truck I would not start out by renting a truck from Penske or any other rental company. There are leasing companies who lease trucks to owner operators and carriers for much less. At the end of the lease you usually own the truck. The kicker is that you will be responsible for all maintenance and other expenses running the truck. The one advantage in renting a Penske truck is that they take care of the maintenance. If the truck breaks down they can get you another truck to keep you moving. I just don't think it is worth $2,400/month for them to take care of the maintenance. In addition, I don't believe they rent trucks to individuals. I rented one through my corporation. In order to qualify with them you need good credit unless they have changed their policy. My advice is to save your money and buy a truck out right. There are some good buys around right now. If you have a good relationship with a bank or credit union you may be able to get one financed and save yourself a lot of money. I have seen trucks selling for as low as $5,000 that appear to be in decent shape. I was thinking about selling one of my trucks. After calling a couple of dealers I found that I can't afford to sell them. They aren't worth anything so I will just keep them. My trucks are in good shape. I know that there are others on the market you can buy for next to nothing. For what you will pay to Penske in a few months you can own a good truck outright. I don't see how you can make any money paying that much money out in this economy.

[firebird_1252]

i looked in to this a while back. its not worth it. i looked at ryder, penske, paclease, and ideal lease. they all said the same thing your payment depends how much you put down. so your payments could still be $2000 a month then miles. to me i'd rather put that in to a truck you own out right. who knows you might be lucky have a truck that dosent break down as much pay it off and make some money out of it.

[Ridge Runner]

BC,

I know you did this kind of deal when you ran HHG. But be honest, was your success not due in large part with you having inside contacts? ( Your Mom and Dad working for the company you leased to? ) Did you get the "high profit" loads over other drivers. I'm not saying you did or didn't and I think you will be honest with us on how you paid this high rate and came out to the good. I won't begrudge the fact if you did. I have done so myself over the years. Just don't lead someone down the wrong path. ;)

[tracer]

I'm looking at my options to get something going and am thinking of starting out by leasing a truck.

I had the same thought when I was a company driver, so I called the local Penske branch and the first thing the guy said on the phone was YOU NEED TO HAVE YOUR OWN AUTHORITY. So, I bought my own slightly used truck with $1,000 down from a truck dealer. If you want to get your truck, try to find a dealer that would agree to give you cashback at signing. Of course they add that amount to the purchase price, but it makes it possible for first time buyers to get behind the wheel of their own equipment. I'm not talking about a new truck. Mine was a 2004 International that I got in 2007. "Where the determination is the way can be found". - George Clason.

[BanditsCousin]

BC,

I know you did this kind of deal when you ran HHG. But be honest, was your success not due in large part with you having inside contacts? ( Your Mom and Dad working for the company you leased to? ) Did you get the "high profit" loads over other drivers. I'm not saying you did or didn't and I think you will be honest with us on how you paid this high rate and came out to the good. I won't begrudge the fact if you did. I have done so myself over the years. Just don't lead someone down the wrong path. ;)

My initial start was at an agent my Mom was a coordinator for, and I'd lease in the summer months from mid May through the end of August during peak months. Otherwise, on a yearly basis, renting a truck isn't profitable. That is why you see a lot of rental tractors pulling bedbugger trailer during the summer months. The last summer I leased before going with another agent (that neither parental worked for) I grossed 85,000 in just under 3 months. They key was doing a LOT of shorthaul and local work, and working my butt into the ground. At my busiest, I'd have 3 trailers loaded for different destinations and would deadhead back to get the loaded one, drop the empty, etc.

Keep in mind, I said gross, not net.

But, on topic, Paclease is also a similar rate. I think I was quoted $550 a week and 10cpm at the time. I wouldn't advise renting a truck without the proper contacts in place in any niche. $3000 is a lot for fixed costs in an economy like this when you don't have shippers or a gig like I had lined up.

[geeshock]

ty all, gave me some insight as to what I'd expect leasing. As you siad bandit, I don't have any brokers or contracts right now so thats something I'd need to do research into also. Right now I'd have to go in a direction that would involve lease purchase or something that don't involve putting to much down. Unfortunately I have some credit problems from years back. credit isn't REALLY bad but not extramly good eather. I wouldn't qualify for a 0% down. So guys and gals, we ruled out penskie and ryder, what about those places that specialize in selling trucks to first time buyers? I do have preferences to frieghtliners, volvo's and internationals. I don't care whats under the hood, mainly looking for what will cost less in repairs and fuel to start me in the right direction so I don't have to sink all my money into repairs and fuel and can sink more of it into the bussiness. I prefer OTR but can deal with local or intermodal to get me started if needed. Even though the economy is down I've noticed the ports here in norfolk and portsmouth are still busy. The only companies advertising need for drivers are the ports localy. Might be a good idea to apply for my twic, at least I have my hazmat so the cost will be a little less.

[nctrucker1]

My initial start was at an agent my Mom was a coordinator for, and I'd lease in the summer months from mid May through the end of August during peak months. Otherwise, on a yearly basis, renting a truck isn't profitable. That is why you see a lot of rental tractors pulling bedbugger trailer during the summer months. The last summer I leased before going with another agent (that neither parental worked for) I grossed 85,000 in just under 3 months. They key was doing a LOT of shorthaul and local work, and working my butt into the ground. At my busiest, I'd have 3 trailers loaded for different destinations and would deadhead back to get the loaded one, drop the empty, etc.

Keep in mind, I said gross, not net.

But, on topic, Paclease is also a similar rate. I think I was quoted $550 a week and 10cpm at the time. I wouldn't advise renting a truck without the proper contacts in place in any niche. $3000 is a lot for fixed costs in an economy like this when you don't have shippers or a gig like I had lined up.

These times are doom and gloom. I also thought about trying to get my own truck, but when the economy went south, I quickly forgot the idea. If lots of o/o were losing their trucks, how would I hope to do better? I think it wouyld be best to wait for a better economy, unless you have good contacts to line you up with plenty of freight that pays well. They say economy is getting better, well, I look around and think, WHERE?

[geeshock]

same here, just trying to get my homework done so when I think the time is right, I can get it done rather than try and do the research at the last minute. I know my friend just jumped right into it and there was A LOT to do in a short period of time. It ended up takeing him longer than it should have simply becuse he didn't research it b4 the fact.

[GMAN]

You are doing the right thing by doing some research before you begin spending money. If you have some credit problems then you might want to see if you can improve your scores before attempting to buy a truck. Having a good down payment will help. There are some good buys on equipment. The trick is in either having cash or the credit to buy something. The second is having somewhere to put your truck or get your authority and hit the road running. These days an uneven gait is probably more in order. You can still make a living in this business, even with the current economy. However, it takes a lot more effort to make the same money as a year ago. I spoke with an owner the other day who told me that instead of going home every 2 or 3 weeks he is staying out 2 or 3 months or more just to pay his bills. Others with whom I have spoken tell me that one week is good and the next is off. Having a cheap or no payment is the best way to go if you plan on proceeding at this time.

[LOAD IT]

ty all, gave me some insight as to what I'd expect leasing. As you siad bandit, I don't have any brokers or contracts right now so thats something I'd need to do research into also. Right now I'd have to go in a direction that would involve lease purchase or something that don't involve putting to much down. Unfortunately I have some credit problems from years back. credit isn't REALLY bad but not extramly good eather. I wouldn't qualify for a 0% down. So guys and gals, we ruled out penskie and ryder, what about those places that specialize in selling trucks to first time buyers? I do have preferences to frieghtliners, volvo's and internationals. I don't care whats under the hood, mainly looking for what will cost less in repairs and fuel to start me in the right direction so I don't have to sink all my money into repairs and fuel and can sink more of it into the bussiness. I prefer OTR but can deal with local or intermodal to get me started if needed. Even though the economy is down I've noticed the ports here in norfolk and portsmouth are still busy. The only companies advertising need for drivers are the ports localy. Might be a good idea to apply for my twic, at least I have my hazmat so the cost will be a little less.

Geeshock,

Call over to D D Jones and see if they will give you some steady work if you get your own authority. You are in a good area. You can leave tidewater for a good rate and then you can pretty much demand a good rate back to the tidewater area. A good lane would be tidewater to midwest.

[merrick4]

I looked into this recently myself. Basically it came to like $3000 a month but that included the miles I assumed I'd run for the month at $.065 per mile for maintenance. It also included a brand new APU which would be mine for a $1 at the end of the lease (24 or 26 months I forget right now). It also included insurance which I am paying through the nose down here in South Florida plus IFTA, plate, permits everything.

I'm still considering it. I just bought another truck for cash, there are a lot of deals out there now, but like I said I might try it out.

The only problem actually was they wanted a big deposit. I told them no to that so he keeps calling me everyday trying to get me to work another angle.

They wouldn't run my credit though I asked them too. Just want a deposit. I'm not going for that.

[geeshock]

Geeshock,

Call over to D D Jones and see if they will give you some steady work if you get your own authority. You are in a good area. You can leave tidewater for a good rate and then you can pretty much demand a good rate back to the tidewater area. A good lane would be tidewater to midwest.

Thanks for the bite, I've noticed the ports are running prety steady here, not much else but the ports seem to be kicking butt.

[GMAN]

I looked into this recently myself. Basically it came to like $3000 a month but that included the miles I assumed I'd run for the month at $.065 per mile for maintenance. It also included a brand new APU which would be mine for a $1 at the end of the lease (24 or 26 months I forget right now). It also included insurance which I am paying through the nose down here in South Florida plus IFTA, plate, permits everything.

I'm still considering it. I just bought another truck for cash, there are a lot of deals out there now, but like I said I might try it out.

The only problem actually was they wanted a big deposit. I told them no to that so he keeps calling me everyday trying to get me to work another angle.

They wouldn't run my credit though I asked them too. Just want a deposit. I'm not going for that.


They may just be protecting themselves. The way banks are reducing or cutting credit they may be fearful of not being able to collect should you damage the truck. I spoke with a Penske office closer to me after renting this truck. According to them I would need to go through the approval process all over again. The office where I did business before has called me to rent more trucks but I can't see making a profit when you rent one of those trucks unless you either haul your own products or have one heck of a contract with great rates. I made little or no profit the week that I rented a truck after paying the driver and rental. You can buy a truck and make monthly payments equal or less than a weekly rental payment. There is no reason to spend more than $500-800/month on a payment, especially with the price of trucks. I don't know how difficult it would be to get financing. Lower prices make it much easier to pay cash.

[geeshock]

I can't see making a profit when you rent one of those trucks unless you either haul your own products or have one heck of a contract with great rates.

Ok, that's where he does ok, he owns a plant farm. He runs his own product. When your running a 53 foot trailer with each rack being about 125 or greater I can better see how he might be able to profit. I guess my next option is to look at the starter truck programs. Guess thats goinna be another thread.

[geeshock]

Ok, here is what I found out talking with penskie. They require proof of 1,000,000 dollor coverage on the tractor. You have the option of eather renting a tractor or tractor trailer combo. They do require a credit check but if you put the required deposit up front the credit check won't affect your lease/rental. It's only in place SHOULD you not put the deposit down.

I got the following prices from penskie

for a sleeper cab

135 per day
675 per week
12 cpm ontop of the per day or per week rental

deposit is 2500

trailer

30 per day
150 per week
5 cpm ontop of daily weekly rental

3500 deposit

Figured I'd post these here for others that might need them

also the number is 800-736-7531 if you have any questions for them

[GMAN]

The $2,500 deposit will go a long way toward a down payment on a truck that you will own. If you need to pay Penske $675 per week in addition to $0.12/mile then you would pay them over $1,000 per week if you run 3,000 miles. $675+ (3,000*.12) = $1,035 per week or $4,150 per month.


You can buy a box trailer for $3,500. If you have $2,500 for a deposit on a trailer you could probably have enough to pay cash for a trailer that you own. $150 + (3,000 miles*.05) = $300 per week or $1,200 per month.

That means if you rent both a truck and trailer from these people you will pay out $1,335 per week or $5,350 per month and you haven't bought fuel or paid your insurance. If you add the deposits on both pieces of equipment you will spend $11,350 your first month on equipment that you will never own. :eek1:

You could pay cash for a truck and trailer in 6-8 weeks for what you will spend on deposits and rental and have equipment that is free and clear.

[geeshock]

I was kinda thinking the same thin gman. I could get a truck that will last a month and make enough money to probably get something more than if I went this route. I'll save this as a meens to deliver frieght to meet a deadline, lol.