Lease Purchase Flaws

[The Grim Reaper]

Do me a favor take a look at these lease/purchase programs and show me the flaws. The pay package is at the bottom. Potential CDL Independent Contractor Solo
Weekly Truck Lease Income

Below figures are only projections; actual income will vary based on individual performance. Projections do not include quarterly income taxes or health insurance.

Weekly Mileage 3,180
Annual Mileage 165,360

REVENUES
Base @ 87 cents/mile $2,766.60 per week
Safety Bonus of $450 per qrtr $34.61 per week
Performance Based Bonus* $1,600.00 first 4 months $30.77 per week
Total Revenue $2,831.98 per week

EXPENSES
Truck Payment $614.00 per week
Fuel @ 6.3 paid mpg fuel cap of $1.25** $630.95 per week
Maintenance @ $0.05 mile*** $159.00 per week
Variable Mileage Payment @ $0.03 mile**** $95.40 per week
Insurance $138.04 per week
License/Permits/FHUT $56.26 per week
Qualcomm $15.00 per week
Admin. Fees $8.46 per week
Fuel/Road Tax @0.015 pm***** $47.70 per week
Total $1,764.81 Per Week

INCOME $1067.17 per week
ANNUAL INCOME $55,492.72 Annually



*The $1600 performance based bonus is paid over four 28 day periods @ $400 per period. To be eligible, a mileage threshold of 11,600 must be met per period.

**Independent Contractors pay for their own fuel with a company fuel card and never pay more than $1.25 with the company's Fuel Cap program.

***This includes money going into the maintenance reserve. 5 cents/per mile go into the maintenance reserve until it caps at $10,000 - used to pay for maintenance charges over $500. Unused reserve is refunded upon completion.

****1 cents per mile of the variable mileage payment is refunded as a completion incentive at lease end.

*****1.5 cents per mile for all dispatched miles will be collected for fuel/road tax payments.

or
The PREMIER LEASE Program

For those drivers ready to make a long-term CDL Lease Purchase commitment, we have a company that offers The PREMIER LEASE:

Truck payment is $548 per week

- OR -

Truck payment is $521 per week if you order 90 days in advance

There is NO variable mileage charge

Governed at 75 mph

Driver has the opportunity to order a customized state-of-the-art truck

Maintenance is capped at $5,000 instead of $10,000

Special Note: The PREMIER LEASE Program provides approximately 30% more income per year compared to the original lease. For further information please contact us.

What is the pay package?

<100 Miles $1.50 601 - 700 Miles $0.90
101 - 200 Miles $1.25 701 - 800 Miles $0.88
201 - 300 Miles $1.10 801 - 900 Miles $0.88
301 - 400 Miles $1.00 901 - 1,000 Miles $0.88
401 - 500 Miles $0.96 1001 + $0.87
501 - 600 Miles $0.93 Unload/Deadhead Miles $0.87

[Cluggy619]

Do me a favor take a look at these lease/purchase programs and show me the flaws. The pay package is at the bottom. Potential CDL Independent Contractor Solo
Weekly Truck Lease Income

Below figures are only projections; actual income will vary based on individual performance. Projections do not include quarterly income taxes or health insurance.

Weekly Mileage 3,180
Annual Mileage 165,360

REVENUES
Base @ 87 cents/mile $2,766.60 per week
Safety Bonus of $450 per qrtr $34.61 per week
Performance Based Bonus* $1,600.00 first 4 months $30.77 per week
Total Revenue $2,831.98 per week

EXPENSES
Truck Payment $614.00 per week
Fuel @ 6.3 paid mpg fuel cap of $1.25** $630.95 per week
Maintenance @ $0.05 mile*** $159.00 per week
Variable Mileage Payment @ $0.03 mile**** $95.40 per week
Insurance $138.04 per week
License/Permits/FHUT $56.26 per week
Qualcomm $15.00 per week
Admin. Fees $8.46 per week
Fuel/Road Tax @0.015 pm***** $47.70 per week
Total $1,764.81 Per Week

INCOME $1067.17 per week
ANNUAL INCOME $55,492.72 Annually



*The $1600 performance based bonus is paid over four 28 day periods @ $400 per period. To be eligible, a mileage threshold of 11,600 must be met per period.

**Independent Contractors pay for their own fuel with a company fuel card and never pay more than $1.25 with the company's Fuel Cap program.

***This includes money going into the maintenance reserve. 5 cents/per mile go into the maintenance reserve until it caps at $10,000 - used to pay for maintenance charges over $500. Unused reserve is refunded upon completion.

****1 cents per mile of the variable mileage payment is refunded as a completion incentive at lease end.

*****1.5 cents per mile for all dispatched miles will be collected for fuel/road tax payments.

or
The PREMIER LEASE Program

For those drivers ready to make a long-term CDL Lease Purchase commitment, we have a company that offers The PREMIER LEASE:

Truck payment is $548 per week

- OR -

Truck payment is $521 per week if you order 90 days in advance

There is NO variable mileage charge

Governed at 75 mph

Driver has the opportunity to order a customized state-of-the-art truck

Maintenance is capped at $5,000 instead of $10,000

Special Note: The PREMIER LEASE Program provides approximately 30% more income per year compared to the original lease. For further information please contact us.

What is the pay package?

<100 Miles $1.50 601 - 700 Miles $0.90
101 - 200 Miles $1.25 701 - 800 Miles $0.88
201 - 300 Miles $1.10 801 - 900 Miles $0.88
301 - 400 Miles $1.00 901 - 1,000 Miles $0.88
401 - 500 Miles $0.96 1001 + $0.87
501 - 600 Miles $0.93 Unload/Deadhead Miles $0.87

Well, that's a pretty good program, WITH A WHOPPING .87 CENTS PER MILE. Great truck payment, too....$614.00 per week? Looks like bull***** to me. 3180 miles per week? Bull***** again. Your not going to get those miles all of the time, if you get them at all....you will be doing good to get 2200-2500 miles per week.

Stop wasting our time with your bull***** advertising for that bull***** company. Anybody who has ever been on this board knows one thing. Flease programs only benefit the company. And this board has rules about companies trying to advertise their bull***** lease programs to drivers without paying for ad space. And any company who already has a contract with this board don't need a bull***** poser advertising some bull***** lease program.

One last thing. I personally feel insulted that you would even think that any driver on this board is that stupid to go for a bull***** program like that. BULL*****! And if your not with that company, RUN FROM THAT COMPANY AS FAST AS YOU CAN!! Because if you can't tell that's a bull***** program, you better spend some more time in a truck before you ever go into a fleace program. :twisted:

[The Grim Reaper]

Stop acting like an ass. I don't work for this company. I just wanted some honest feedback, not some jerk chewing on my ass. And please learn how to spell, you have the dirty mouth part mastered.

[Uturn2001]

Got to agree with Cluggy on this one.

3200 miles per week, every week, is not realistically obtainable.

Secondly there is no way to guarantee that the truck will obtain the MPG listed.

Third, as an "independent" your taxes will be higher than that of a company driver, thereby further reducing your "take home" pay.

Fourth, if you want health insurance, your monthly premiums are going to be a lot higher because as an "independent" you are going to have to find and purchase it yourself.

Finally, if you can not make it driving no more than 2500 miles per week with any company, regardless of being an O/O or company driver, you are working for the wrong people.

[SilverWulf]

Averaging 3180 a week, and working the full 52 weeks in a year to reach 165,360 just isn't going to happen.

This is the CRE Lease, btw. Search here for further information, CRE does not have a good reputation on this board.

They no longer pay the safety bonus.

Maintaining paid 6.3mpg is going to be tough. Yes, you may get 6.3 overall, but not 6.3 paid, so there is a chance of getting booted out of the fuel program and having to pay pump price with a fuel rebate.

The maintenance fund is now at 8cpm.

The variable mileage payment is also 8cpm.

License/Permits/FHUT, Qualcomm, and admin fees are no longer taken out of the settlements.

To qualify for the premier lease, you have to complete at least a one year lease. There are trucks available to lease with terms from 6 months to 3 years. If you lease a new truck at three years, you cannot become a premier leaser until you have completed that lease. Or, you can lease a 6 month truck, then another and complete your year to become premier.

Now, with all that said...

I am leasing from CRE and I am doing very well. How is it I can do well when so many others fail? Luck of the draw? I doubt it. This is a business, not an easy way to make quick money. Being your own boss is not all it's cracked up to be. You have to be serious about making this a success. Nobody is going to do it for you, there isn't going to be anyone holding your hand and showing you what to do every day.

I think a big part of why I am doing well is that I got into a dedicated fleet that has more than enough miles to run. I take one day off a week and am bringing home 850+ a week for now, plus I am home just about every night. In August this account will add a new section that will increase the miles available. Being home every night and having that day off a week probably won't happen after that. Of course, the bring home pay will go way up in return. I'll run hard, then come home for a reset and head out again.

I am not convinced that a national fleet OTR driver can make it with this lease. Between loading, unloading, lumpers, tolls, wait times, etc... I just don't see that someone could run enough miles consistently enough to make a go of it.

There are several dedicated accounts with good miles and other perks that are available which I think make success possible for someone with the right mindset and a good work ethic.

Are you an experienced driver with at least 3 years OTR? Accident/Incident free? No late loads? Good work history? Good driving record? Drug free? Are you ready, willing, and able to work you ass off for very little return to begin with before you see good money?

Dan

[Cluggy619]

Stop acting like an ass. I don't work for this company. I just wanted some honest feedback, not some jerk chewing on my ass. And please learn how to spell, you have the dirty mouth part mastered.

Pal, I am a ass, and a jerk. I'm glad you don't work for this company. Many posers have come to this board, and other boards as well, looking for a newbe to sucker into a fleace program such as this.

You need to research this board on lease programs....And hopefully, you'll never be taken advantage of by companies like that one.

Good luck.

[The Grim Reaper]

I appreciate you guys taking it apart for me. I didn't think it was realistic, but they make it look so good.

[The Grim Reaper]

Cluggy
Thanks for wishing me good luck I'm sure I'll need it. I'm certainly not looking any futher at a lease/purchase program. Sorry I lost my cool, I'm sure you were only trying to get my attention. Which you did!(lol)

[Malaki86]

INCOME $1067.17 per week
ANNUAL INCOME $55,492.72 Annually

I already make that, and if something happens to my truck the company I work for has to fix it on their dime. How is it worth it?

[Fredog]

Do me a favor take a look at these lease/purchase programs and show me the flaws. The pay package is at the bottom. Potential CDL Independent Contractor Solo
Weekly Truck Lease Income

Below figures are only projections; actual income will vary based on individual performance. Projections do not include quarterly income taxes or health insurance.

Weekly Mileage 3,180
Annual Mileage 165,360

REVENUES
Base @ 87 cents/mile $2,766.60 per week
Safety Bonus of $450 per qrtr $34.61 per week
Performance Based Bonus* $1,600.00 first 4 months $30.77 per week
Total Revenue $2,831.98 per week

EXPENSES
Truck Payment $614.00 per week
Fuel @ 6.3 paid mpg fuel cap of $1.25** $630.95 per week
Maintenance @ $0.05 mile*** $159.00 per week
Variable Mileage Payment @ $0.03 mile**** $95.40 per week
Insurance $138.04 per week
License/Permits/FHUT $56.26 per week
Qualcomm $15.00 per week
Admin. Fees $8.46 per week
Fuel/Road Tax @0.015 pm***** $47.70 per week
Total $1,764.81 Per Week

INCOME $1067.17 per week
ANNUAL INCOME $55,492.72 Annually



*The $1600 performance based bonus is paid over four 28 day periods @ $400 per period. To be eligible, a mileage threshold of 11,600 must be met per period.

**Independent Contractors pay for their own fuel with a company fuel card and never pay more than $1.25 with the company's Fuel Cap program.

***This includes money going into the maintenance reserve. 5 cents/per mile go into the maintenance reserve until it caps at $10,000 - used to pay for maintenance charges over $500. Unused reserve is refunded upon completion.

****1 cents per mile of the variable mileage payment is refunded as a completion incentive at lease end.

*****1.5 cents per mile for all dispatched miles will be collected for fuel/road tax payments.

or
The PREMIER LEASE Program

For those drivers ready to make a long-term CDL Lease Purchase commitment, we have a company that offers The PREMIER LEASE:

Truck payment is $548 per week

- OR -

Truck payment is $521 per week if you order 90 days in advance

There is NO variable mileage charge

Governed at 75 mph

Driver has the opportunity to order a customized state-of-the-art truck

Maintenance is capped at $5,000 instead of $10,000

Special Note: The PREMIER LEASE Program provides approximately 30% more income per year compared to the original lease. For further information please contact us.

What is the pay package?

<100 Miles $1.50 601 - 700 Miles $0.90
101 - 200 Miles $1.25 701 - 800 Miles $0.88
201 - 300 Miles $1.10 801 - 900 Miles $0.88
301 - 400 Miles $1.00 901 - 1,000 Miles $0.88
401 - 500 Miles $0.96 1001 + $0.87
501 - 600 Miles $0.93 Unload/Deadhead Miles $0.87

Well, that's a pretty good program, WITH A WHOPPING .87 CENTS PER MILE. Great truck payment, too....$614.00 per week? Looks like bull***** to me. 3180 miles per week? Bull***** again. Your not going to get those miles all of the time, if you get them at all....you will be doing good to get 2200-2500 miles per week.

Stop wasting our time with your bull***** advertising for that bull***** company. Anybody who has ever been on this board knows one thing. Flease programs only benefit the company. And this board has rules about companies trying to advertise their bull***** lease programs to drivers without paying for ad space. And any company who already has a contract with this board don't need a bull***** poser advertising some bull***** lease program.

One last thing. I personally feel insulted that you would even think that any driver on this board is that stupid to go for a bull***** program like that. BULL*****! And if your not with that company, RUN FROM THAT COMPANY AS FAST AS YOU CAN!! Because if you can't tell that's a bull***** program, you better spend some more time in a truck before you ever go into a fleace program. :twisted:

come on, dont hold back, tell us how you really feel

[mike3fan]

I am leasing from CRE and I am doing very well......... I take one day off a week and am bringing home 850+ a week for now

Dan

This is an example of what is wrong with the L/P deal as far as I am concerned,they make drivers feel that taking home $850 a week is good,not for the headaches and risks involved,could do much better being a company driver.....but I do hope for the best for you and your continued "success".

[abc123]

you forgot food, but everyone is right, solo drivers average 2,500 miles a week, and for the $800-900 a week that you will have left you might as well drive for the company. the easy way to calculate o/o pay is the average of $0.85cpm expenses, thats all included. so whatever you make over the 85cpm is your net.

oh by the way, as you wrote 165,000 miles a year solo divided by 365 days a year is 450 miles a day without taking one day off EVER.

you are guaranteed to fail and lose money with this lease program.

for the extra 45,000 miles that you wont get multiplied by $0.90cpm is $40,500, so your salary of $55,000 a year minus $40,500(miles that are impossible) and your grand total is $14,500 a year, going on welfare is more money, and i was just being generous before by saying you will have $800-900 a week.

[continental]

Even if you get all those miles, you're only making 33CPM.
WHATTA F@#K!
Apart from that, to get paid for 3100 miles, you will have to drive
3500 miles. Add the cost of fuel, you're making what, 30CPM?
Only an IDIOT! :twisted:

[continental]

Stop acting like an ass. I don't work for this company. I just wanted some honest feedback, not some jerk chewing on my ass. And please learn how to spell, you have the dirty mouth part mastered.

We might disagree on this board, but this kind of lenguage is unacceptable. Go somewhere else!( You know where!)

[SilverWulf]

I am leasing from CRE and I am doing very well......... I take one day off a week and am bringing home 850+ a week for now

Dan

This is an example of what is wrong with the L/P deal as far as I am concerned,they make drivers feel that taking home $850 a week is good,not for the headaches and risks involved,could do much better being a company driver.....but I do hope for the best for you and your continued "success".

This is an example of someone thinking they know what is best for someone else.

Do you really think I'm so stupid that I don't know I could make more as a company driver?

Right now, in my particular situation, 850+ a week works. This is but one of many steps to a distant goal in the path I have laid out.

Quite possibly this, or any, lease program would not work for YOU, but it works just fine for ME.

Dan

[mike3fan]

Quite possibly this, or any, lease program would not work for YOU

Wow! could not have said it better myself.

[Drew10]

Im just goin to chim in my 2cents for reinforcement....not even goin to bother answering the poll....

No point in having the "headaches" of your own truck...

The bottom line is $$$ to the house/wife(your net income).

A good company driver will net to the house just as much and possibly more than a lease driver, and doesnt have any of the headaches a lease driver would have.

[Fredog]

Im just goin to chim in my 2cents for reinforcement....not even goin to bother answering the poll....

No point in having the "headaches" of your own truck...

The bottom line is $$$ to the house/wife(your net income).

A good company driver will net to the house just as much and possibly more than a lease driver, and doesnt have any of the headaches a lease driver would have.

one of my fellow drivers was going over monteagle friday and his engine blew, the mechanic brought him another truck with our wrecker and took his truck in, the driver never missed a load, just got a 1/2 day behind, can you do that with a lease?

[abc123]

work for a company and try to save money, once you have some savings youll be in a better position to go o/o, generally i think if you have half the money of the truck cost then the numbers work more in your favor. once youre ready make sure you finance the truck separatly and then lease on with a company or run your own authority, but never, NEVER sign a lease-purchase with any company.

[DD60]

Averaging 3180 a week, and working the full 52 weeks in a year to reach 165,360 just isn't going to happen.

This is the CRE Lease, btw. Search here for further information, CRE does not have a good reputation on this board.

They no longer pay the safety bonus.

Maintaining paid 6.3mpg is going to be tough. Yes, you may get 6.3 overall, but not 6.3 paid, so there is a chance of getting booted out of the fuel program and having to pay pump price with a fuel rebate.

The maintenance fund is now at 8cpm.

The variable mileage payment is also 8cpm.

License/Permits/FHUT, Qualcomm, and admin fees are no longer taken out of the settlements.

To qualify for the premier lease, you have to complete at least a one year lease. There are trucks available to lease with terms from 6 months to 3 years. If you lease a new truck at three years, you cannot become a premier leaser until you have completed that lease. Or, you can lease a 6 month truck, then another and complete your year to become premier.

Now, with all that said...

I am leasing from CRE and I am doing very well. How is it I can do well when so many others fail? Luck of the draw? I doubt it. This is a business, not an easy way to make quick money. Being your own boss is not all it's cracked up to be. You have to be serious about making this a success. Nobody is going to do it for you, there isn't going to be anyone holding your hand and showing you what to do every day.

I think a big part of why I am doing well is that I got into a dedicated fleet that has more than enough miles to run. I take one day off a week and am bringing home 850+ a week for now, plus I am home just about every night. In August this account will add a new section that will increase the miles available. Being home every night and having that day off a week probably won't happen after that. Of course, the bring home pay will go way up in return. I'll run hard, then come home for a reset and head out again.

I am not convinced that a national fleet OTR driver can make it with this lease. Between loading, unloading, lumpers, tolls, wait times, etc... I just don't see that someone could run enough miles consistently enough to make a go of it.

There are several dedicated accounts with good miles and other perks that are available which I think make success possible for someone with the right mindset and a good work ethic.

Are you an experienced driver with at least 3 years OTR? Accident/Incident free? No late loads? Good work history? Good driving record? Drug free? Are you ready, willing, and able to work you ass off for very little return to begin with before you see good money?

Dan

This is what is wrong with trucking today. 850.00 a week as an O/O??That is a big joke. After the social security tax,income tax,and maintenance(yes,trucks do break down) are taken out of that 850.00,you would make more money delivering pizzas. 614.00 a week is what the leases are running at? :shock: The best way to start out as an O/O is to buy a good used truck for around 35-40k with less than 400k miles on it and keep the MONTHLY payments at or below 1500.00. At 614.00 a week that comes out to over 2400.00 a month and you still don't own anything. VERY unrealistic.