Thinking about leasing a truck

[Chicken wings]

I've been over at Swift for about 8 months now and I have saved some money and was thinking about leasing a truck. I was talking to a driver at the terminal and he says he drives about 2 to 2.5 weeks and then takes off for 2 weeks and still makes about a 1,000 a week. That seems better than doing what I'm doing now working all the time and I have barely made 22,000 so far. I mean I know that not bad, but I would like that money and time off. I know there is some risk, but for the rewards I will take the chance.

CW

[mike3fan]

Oh boy here we go again.

First give up the facts,how long have you been driving total?
Do you have any experience in running a buisness?
Just because some driver blew smoke up your skirt I would not be so quick to think that you will be able to take 2 weeks off every month,that is generally just not pratical,I have probably taken off 2 weeks in the last 2 years(maybe).

Next leasing a truck from a carrier is also generally a bad idea,it only makes money for the carrier and you will most likely never own that truck,do like most of us that don't have an extra 100 grand sitting in the bank and work a few years as a company driver and save up enough money for a nice size down payment on a good used truck,then try to find a carrier to lease onto that pays by percentage of what the load pays and you will have good start on being an O/O.

I worked as a company driver for nine years before I bought my first truck,now I have been an O/O for 12 years,there is no hurry,you will make marginally better money as a O/O,but will have a little more freedom when and where you wanto run if you get hooked up with a good carrier.

Do Not believe all the smoke and mirrors and false promises that these companies tell you about how much you can make per week in these lease purchase deals,they have over the course of time proven time and time agan that they are not the correct way to getting your own truck.

There are literally hundreds of pages on this board having to do with these scams from actual drivers who have tried to go down this road,please search a few of them out and read them.

[Chicken wings]

I've been driving for 8 months. he should me how you could it and he went out to his truck and showed me his pay stubs and they looked pretty good. He said you just have to run hard for two weeks or so and then take time off for yourself. I mean some of those stubs were for like 1,500 or better. Man that's better than my 550 or 700 when I run real hard checks. He said after I get the hang of it I could buy another truck and get somebody to drive it and try to build my own small fleet. That would be cool but I know it will be hard work.

I have some business experience I was the Asst. Manager at the movie theater when I was in High School and then at Wendy's.

CW

[mike3fan]

I've been driving for 8 months. he should me how you could it and he went out to his truck and showed me his pay stubs and they looked pretty good. He said you just have to run hard for two weeks or so and then take time off for yourself. I mean some of those stubs were for like 1,500 or better. Man that's better than my 550 or 700 when I run real hard checks. He said after I get the hang of it I could buy another truck and get somebody to drive it and try to build my own small fleet. That would be cool but I know it will be hard work.

I have some business experience I was the Asst. Manager at the movie theater when I was in High School and then at Wendy's.

CW

Hey it's sounds great then,but I would suggest a little more investigation into the whole process,and some other experiences.I know some of those truck payments on the L/P deals are around $600 a week,how do you figure you can make $2,400 a month truck payments in 2 weeks? Plus upwards of $1500 a week in fuel and ..........

[Chicken wings]

Well maybe I'll just take a week off to start until I start banking that money and build up mu escrow account and he said that's when the money starts rolling in and he said you get to write everything off so that is a plus isn't it?

CW

[Roadie]

Well maybe I'll just take a week off to start until I start banking that money and build up mu escrow account and he said that's when the money starts rolling in and he said you get to write everything off so that is a plus isn't it?

CW

you can write off alot,,,,,only problem is you gotta have the money in the first place to write it off later!! :shock:

[solo379]

I have saved some money and was thinking about leasing a truck.

You are on a right path! 8)
Just keep doing what you are doing for a bit longer. And in a mean time, try to learn some basics of a trucking business!
I'd suggest to start with the "Cost per mile" CPM concept, which you are definitely not familiar to!
Cause if you would, you could to explain to that "lease operator" that in reality, those $1500 is probably less, than your $500! :wink:

[BanditsCousin]

Chicken Wings, that driver is lying to you. The math doesn't add up with the weekly lease pmt, the fuel costs, insurance, maintenance, and mileage charge Swift charges per mile. I was actually talking to co driver for Swift last night at dinner and he even admitted the lease (0/0's) live in their trucks.

So, this driver runs 2 weeks and off two weeks? For sake of argument lets say he runs 3 and off 1, this is what it would be like-

3 weeks running 3400 mi/week @1.15$/mi = $11,730

Sounds like a lot of money, right? It does to me! But, damn, reality kicks in :x .....

3 weeks at 3400 miles = 10,200 miles

10,200 miles / 5mpg =2,040 gallons (including idling, wrong turns, hills, etc). At roughly $2.90/gal, thats $5916 in fuel costs. (Hey what happened to my $11,730?? :shock: )

Then, you have the lease payment, that NEVER takes a week off , and thats around 550 or 600 per month. Lets say $550/week....thats $2200 for the month. I know theres a mileage charge per mile on the lease truck, so lets go easy and say 3cpm (could be more). Those 10,200 miles at 3cpm is at least $306.

So in retrospect, lets re-evaluate the smoke and mirrors.

My calculations are running super-hard weeks, and assuming you get 3400 miles, which is kinda hard, but thats where I set the upper end of the spectrum at. Heres a breakdown-

Monthly revenue-$11,730

Fuel expenses,lease expenses, mileage expenses all run you $8422 (at the VERY least), therefore leaving you at $3308 profit for the month, or roughly $827/week if you take 1 week off every 3.

NOW, if you run less and take MORE time off a few variables change. The operational costs go down, but some/most overhead stays constant. Also, 3400 miles per week isn't exactly industry average, but 2500-3000 is more the norm. So, using my formulas above, you can "plug and chug" numbers and see that you $827/week take home could quickly become $500 or less if you have a bad week, or any other scenario.

For the o/o's reading this, keep in mind I neglected maintenance costs, tolls, and a few hundred in insurance costs, because after all, those grow on a tree down the street from me and don't cost a thing

[Chicken wings]

So this guy was full of it?

Well if you can't make it work, why are so many guys leasing trucks from the company and I don't hear them complaining, but I always hear the company drivers complaining.

So what should I do after I get my year experience in? Should I just look for a carrier that pays higher. I have seen some that will pay around .40 for a year and what about Heartland that says .50 on their trailers? How much experience do you need for them guys? Who are the better companies because I know mine isn't on the top of the list they pay for (edited).

Is there a company driver forum or a general post place here where I can ask these questions?

CW

[solo379]

So this guy was full of it?

May be, may be not!
You see, the sad part is that most of folks who is doing it, don't even realise, they are broke, till the final moment.
Like that chicken w/o the head, who is still running...! :sad:

It doesn't mean, you can't be successful in trucking business, but L/P IMHO, is not the way!

The fact, that you were able to save the money, working for Swift, and at the beginning of your career, says that you can do it! 8)

[Chicken wings]

Well I still live with my parents or in the truck so it isn't that hard to save money. I'm thinking about moving out in another year or two.

CW

[mike3fan]

Well I still live with my parents or in the truck so it isn't that hard to save money. I'm thinking about moving out in another year or two.

CW

You then are in a positive situation,keep doing what you're doing,drive for a year at swift,then based on where you want to run go to a better paying carrier atleast .40cpm and start putting away more and more money.

In 3 years time you will be able to pay cash for a truck and have a great start at being an O/O.Then with 3 years OTR experience you will have no trouble getting signed on with any company,if you keep your driving record clean,and you will also have lower insurance premiums to pay,if you try to go about this in too big a hurry you will get caught up in the nightmare of digging yourself a big finacial hole and have to work very hard to get out of.

I say let the Billy Big Riggers keep telling you how much they are making and take about 1/2 of what they say for truth,and just keep your eyes on the prize,three years sounds like a long time to put up with the BS I know,but think of it as an apprenticeship into the trucking industry,get some real life experiences while making some mistakes on some else's equipment,then you will be more prepared than ever when you get your own truck.

[Sonny Pruitt]

L/P is dumb
and when you do L/P
you better have thick skin
because a lot of other drivers
will think you are a chump
and then in a year or so
you will also realize that you are indeed a chump
for L/P to Swift
How does your friend with the L/P get off 2 weeks at a time
There is no way a dispatcher is going to let equipment sit that long
Does he have a medical condition?

[tootie04]

WOW!! someone really lied to you!! There is no way you will see 2 weeks home time a month EVER!! When you lease a truck and you are off for what ever reason those payments you make each week are still being taken out of your settlement even if your truck sits. Then when you start running again you have to try to come up out of the hole and that is next to impossibe.

Trust me....it is NOT a good idea especially if you want to see home more than once every few months.

tootie

[Rooster Cruiser]

What no one takes into account, is we do not know the situation of the other drivers truck...

Is he doing the lease purchase? Did he buy it from the outside? Is it paid for?

There are alot of variables that hasnt been said.

However, as a rule, while doing the lease purchase thing, no, you will never take 2 weeks off a month, while making strokes to the company. Its bad business to buy a truck from the people who control how many (or how little) miles you get. Its not like you can get all huffy and puffy and tell them to go "pound sand", because ultimately, it is their truck.

Buying a truck is one thing. Doing the L/P scam is just that, a scam.

Oh, and did he tell you about his tax situation too? Remember, a conservative estimate of about 1/3 of your gross earnings, goes to Uncle Sam.... And you dont always zero out every year....

And what about his health insurance? Because once your a contractor, that burden falls on your pocketbook as well....

And retirement?

And disability?

And, and, and????

The list goes on and on.

I drove for 10 years, and of that, 5 was spent as an O/O. Get a couple of years in behind the wheel before you decide to go and do something as foolish as to buy a truck.... :wink:

[LOAD IT]

Well maybe I'll just take a week off to start until I start banking that money and build up mu escrow account and he said that's when the money starts rolling in and he said you get to write everything off so that is a plus isn't it?

CW

You are following the wrong guys example. You dont need 2 weeks a month off!! If you get a lease truck, you need to run the wheels off of it, get a good reputation with your dispatch and earn the title to that tractor.

This guy you are quoting is going to fail, dispatch is going to get tired of his "You know I start my 2 weeks hometime tomorrow, I cant take that hot load"

We truck to take care of the customer, be safe and make a good living (probably in that order). You cant truck to plan your monthly 2 week vacation and expect to make a living. I'm not going to talk you out of the fleece program, but you better be prepared to be fleeced especially if you are not serious about trucking.

[BanditsCousin]

I think my figures were more optimistic than I posted.

[RostyC]

Just to add a little to what LOAD IT said. I know quite a few people who have there own business, me included, none of them take 2 weeks off a month.

Hell, my wife wishes I'd take one week off a year.

[apache34]

Does anyone of you know anything about Perkins Specialized Tranportation lease purchase? got email from them and they dont have company trucks. Just wondering if they too screw you at the end of contract?

[GMAN]

Apache, I consider all fleece purchase deals the same. I have met some owner operators who were leased to Perkins. They seem to be happy. I doubt that they leased a truck from the carrier. If you have the figures, we will be glad to take a look at them.

I see you are from Tennessee. I used to know a driver who's handle was Apache. He lived on Monteagle.