What in the world?

[Fillupsherman]

What have I gotten myself into? Ok, it's not that bad, but I could use all the advice I can get.

I've just signed up for a Lease Purchase program with a reliable company. Not the right time for that, huh? Yea I know but I have my reasons and I'm confident that by making the right decisions, I can turn this into a successful business.

So here's the deal:

--Market adjusted fuel surcharge
--30 day bumper to bumper + manufactuers waranty
--Sliding pay scale (High miles pay less)
--Reasonable finance payments
--Good "through the company" truck insurance (Physical, liability, chargeback reduction) at a mediocre price
--Poor "through the company" health insurance at an even worst price
--Free qualcomm installation ($11 a month to run)
--Plates, permits paid by the company
--Company trailers at no charge
--Weekly settlements
--No $$ down
--Safety bonus
--Required equipment financing
--100% of all stop charges
--100% of all tarp charges
--Maint. accnt
--"Rainy Day" accnt
--Tire accnt
--First two weeks are payment free
--First two weeks expenses(Fuel, maint.) are covered by the company
--2-3 weeks out 2-3 days home
--No toll reimbursement
--Trip pack at a small charge(I forget what it is)
--The truck I picked is a '05 freightliner columbia that has good suspension, no rust on the frame, nice on the inside and I'm checking the service records before I sign anything tomorrow (Wed., Dec. 3rd)

Also, I wrote a short business plan and took a 6 hour small business seminar before coming here. I know I've thought this out pretty well, but it's my first time doing it so what's the word?

I'm looking for whatever advice people want to throw my way.

Thanks all,
Fill-Up

[Mackman]

This company wouldn't happen to be CR ENGLAND???

[Fillupsherman]

Haha good try but for personal reasons I'm not going to put their name online. I'll end this by saying they aren't England, Schnieder, Werner or J.B. Hunt, and I'll let people speculate from their.

[BigDiesel]

What have I gotten myself into? Ok, it's not that bad, but I could use all the advice I can get.

I've just signed up for a Lease Purchase program with a reliable company. Not the right time for that, huh? Yea I know but I have my reasons and I'm confident that by making the right decisions, I can turn this into a successful business.

So here's the deal:

--Market adjusted fuel surcharge
--30 day bumper to bumper + manufactuers waranty
--Sliding pay scale (High miles pay less)
--Reasonable finance payments
--Good "through the company" truck insurance (Physical, liability, chargeback reduction) at a mediocre price
--Poor "through the company" health insurance at an even worst price
--Free qualcomm installation ($11 a month to run)
--Plates, permits paid by the company
--Company trailers at no charge
--Weekly settlements
--No $$ down
--Safety bonus
--Required equipment financing
--100% of all stop charges
--100% of all tarp charges
--Maint. accnt
--"Rainy Day" accnt
--Tire accnt
--First two weeks are payment free
--First two weeks expenses(Fuel, maint.) are covered by the company
--2-3 weeks out 2-3 days home
--No toll reimbursement
--Trip pack at a small charge(I forget what it is)
--The truck I picked is a '05 freightliner columbia that has good suspension, no rust on the frame, nice on the inside and I'm checking the service records before I sign anything tomorrow (Wed., Dec. 3rd)

Also, I wrote a short business plan and took a 6 hour small business seminar before coming here. I know I've thought this out pretty well, but it's my first time doing it so what's the word?

I'm looking for whatever advice people want to throw my way.

Thanks all,
Fill-Up

WHERE DO I SIGN UP !!!!!

[Malaki86]

They're charging you for the TripPak but that's the only way to get the paperwork to the office? Nice...

100% fuel surcharge? What's the rate they're paying for the fsc today?

Is the Qualcomm required in the truck by the company?

[Fillupsherman]

They're charging you for the TripPak but that's the only way to get the paperwork to the office? Nice...

100% fuel surcharge? What's the rate they're paying for the fsc today?

Is the Qualcomm required in the truck by the company?

Yes, 100%. Now it's 35 cpm, when fuel was $4.14 around the country it was 59 cpm

Yes the Qualcomm is required

[Mackman]

I'm welling to bet it is Maverick. Going by what you said. You get 100% of tarp pay. So that makes it a flatbed carrier. Also you got a Freightliner Columbia which is Mavericks choice of truck. Like i said just a guess. Also it would be helpful if you gave the company's name cuz maybe someone here has been down that road and can give you better advice.

[Rev.Vassago]

One thing I noticed was missing was any indication on what they paid. I find a $0.35 per mile FSC to be a bit hard to believe, because with fuel averaging around $2.50 per gallon, at 6 mpg that would only have you paying $0.06 per mile for fuel. I'd expect that FSC to be dropping very quickly to around $0.18 per mile.

How much is this L/P truck going to cost you per week? What sort of revenue are other L/P drivers making per week gross? How many miles on the truck?

[Fillupsherman]

One thing I noticed was missing was any indication on what they paid. I find a $0.35 per mile FSC to be a bit hard to believe, because with fuel averaging around $2.50 per gallon, at 6 mpg that would only have you paying $0.06 per mile for fuel. I'd expect that FSC to be dropping very quickly to around $0.18 per mile.

How much is this L/P truck going to cost you per week? What sort of revenue are other L/P drivers making per week gross? How many miles on the truck?

--pay between .81 cpm and 1.50, with a quarterly min. of 1.05 for all dispatched mi., must run min. 25,000 disp. mi. and have an average haul length less than 1000 mi.

They also offer contract percentage at 65% so I can pick and chose depending on what will profit more. I still don't understand all the pay details, but it has seemed reasonable and I expect to find out more tomorrow.

--No that FSC is right on. It's a good one for sure it's market adjusted to make sure I don't take it up the ***. No joke if you pull 7mpg you can make money of the FSC

--The truck is hitting me for $475 per week. As for what I hear that other people are making, I've heard anywhere from $700 - $1200 per week.

--Miles on the truck are 308 K

[scooter777]

"What have I gotten myself into?"

A toilet, they can flush it any time they would like, and then it is all down hill from there.

[Orangetxguy]

--pay between .81 cpm and 1.50, with a quarterly min. of 1.05 for all dispatched mi., must run min. 25,000 disp. mi. and have an average haul length less than 1000 mi.

They also offer contract percentage at 65% so I can pick and chose depending on what will profit more. I still don't understand all the pay details, but it has seemed reasonable and I expect to find out more tomorrow.

--No that FSC is right on. It's a good one for sure it's market adjusted to make sure I don't take it up the ***. No joke if you pull 7mpg you can make money of the FSC

--The truck is hitting me for $475 per week. As for what I hear that other people are making, I've heard anywhere from $700 - $1200 per week.

--Miles on the truck are 308 K

At $700-$1200 per week to the truck, your better off being a company driver. You need to figure at least $3500 minimum per week to the truck, just to survive right now. $1200 should be a "Get you home after being out for 6 weeks" load.

Just my opinion.

Tell them no in the morning. Take another shot at a better deal in June.

[Fillupsherman]

At $700-$1200 per week to the truck, your better off being a company driver. You need to figure at least $3500 minimum per week to the truck, just to survive right now. $1200 should be a "Get you home after being out for 6 weeks" load.

Just my opinion.

Tell them no in the morning. Take another shot at a better deal in June.

No I meant that as a net income, take home. What you have once you pay all your bills, fixed deductions, variable expenses, and put aside a couple hundred dead benjamins for taxes

[fdmax]

[QUOTE=Fillupsherman;427181

They also offer contract percentage at 65% so I can pick and chose depending on what will profit more.
I still don't understand all the pay details, but it has seemed reasonable and I expect to find out more tomorrow.

[/QUOTE]

I would recommend you getting full understanding of the pay details, before you sign anything, even if they have to repeat this until you do, you need to know the structure of how they pay. And what goes to them, Keep your own books too, don't just let them do, know what you make and what you spend.

[Rev.Vassago]

--pay between .81 cpm and 1.50, with a quarterly min. of 1.05 for all dispatched mi.,

Dispatched miles are likely at least 10% off of actual miles, depending upon what they use to dispatch. If they are using HHG, then it is probably more like 15% off. Does "dispatched miles" include deadhead miles? If not, that's probably another 10% - 15% right there. That $1.05 is cheap when you factor in all the variables. That's a potential rate of $0.84 per mile if they don't pay deadhead - cheap freight.

They also offer contract percentage at 65% so I can pick and chose depending on what will profit more. I still don't understand all the pay details, but it has seemed reasonable and I expect to find out more tomorrow.

65% of what? What is their average per mile rate?

--No that FSC is right on. It's a good one for sure it's market adjusted to make sure I don't take it up the ***. No joke if you pull 7mpg you can make money of the FSC

I think someone is handing you a line on the FSC. Just my personal opinion. Do you have these FSC rates in writing from the company? They should be able to provide you with a chart which will show you what the FSC is based upon the cost of fuel. Or are you getting these numbers from talking to drivers?

--The truck is hitting me for $475 per week. As for what I hear that other people are making, I've heard anywhere from $700 - $1200 per week.

$700 - $1200 per week gross??? What they are supposedly netting is irrelevant. What you want to know is what the average driver is grossing. Then you can use that to deduct your expenses to see what you would be possibly making. But if they are netting $700 - $1200 per week, that is extremely low, especially since there is no taxes taken out of it. Taxes will eat up at least 25% of that. Possibly more. Take 25% out of that $700, and you're down to $525 per week. That's $25,200 per year. That's ridiculous. Even the $1200 per week, when you subtract out 25%, leaves you with only $900 per week. So you're gonna earn somewhere between $525 and $900 per week?

Run far, far away from this!

[Orangetxguy]

No I meant that as a net income, take home. What you have once you pay all your bills, fixed deductions, variable expenses, and put aside a couple hundred dead benjamins for taxes

I don't think this is the right time to be getting into a truck. Especially a Lease Purchase. The economy stinks and is only going to get worse. I will be surprised if it turns before June. Hopefully it will turn in March...but don't hold your breath.

Prayers are in order.

[Jumbo]

What have I gotten myself into? Ok, it's not that bad, but I could use all the advice I can get.

I've just signed up for a Lease Purchase program with a reliable company. Not the right time for that, huh? Yea I know but I have my reasons and I'm confident that by making the right decisions, I can turn this into a successful business.

So here's the deal:

--Market adjusted fuel surcharge
--30 day bumper to bumper + manufactuers waranty
--Sliding pay scale (High miles pay less)
--Reasonable finance payments
--Good "through the company" truck insurance (Physical, liability, chargeback reduction) at a mediocre price
--Poor "through the company" health insurance at an even worst price
--Free qualcomm installation ($11 a month to run)
--Plates, permits paid by the company
--Company trailers at no charge
--Weekly settlements
--No $$ down
--Safety bonus
--Required equipment financing
--100% of all stop charges
--100% of all tarp charges
--Maint. accnt
--"Rainy Day" accnt
--Tire accnt
--First two weeks are payment free
--First two weeks expenses(Fuel, maint.) are covered by the company
--2-3 weeks out 2-3 days home
--No toll reimbursement
--Trip pack at a small charge(I forget what it is)
--The truck I picked is a '05 freightliner columbia that has good suspension, no rust on the frame, nice on the inside and I'm checking the service records before I sign anything tomorrow (Wed., Dec. 3rd)

Also, I wrote a short business plan and took a 6 hour small business seminar before coming here. I know I've thought this out pretty well, but it's my first time doing it so what's the word?

I'm looking for whatever advice people want to throw my way.

Thanks all,
Fill-Up

This sounds like the deal Anderson is pushing.

[rank]

What have I gotten myself into? Ok, it's not that bad, but I could use all the advice I can get.

I've just signed up for a Lease Purchase program with a reliable company. Not the right time for that, huh? Yea I know but I have my reasons and I'm confident that by making the right decisions, I can turn this into a successful business.

So here's the deal:

--Market adjusted fuel surcharge
--30 day bumper to bumper + manufactuers waranty
--Sliding pay scale (High miles pay less)
--Reasonable finance payments
--Good "through the company" truck insurance (Physical, liability, chargeback reduction) at a mediocre price
--Poor "through the company" health insurance at an even worst price
--Free qualcomm installation ($11 a month to run)
--Plates, permits paid by the company
--Company trailers at no charge
--Weekly settlements
--No $$ down
--Safety bonus
--Required equipment financing
--100% of all stop charges
--100% of all tarp charges
--Maint. accnt
--"Rainy Day" accnt
--Tire accnt
--First two weeks are payment free
--First two weeks expenses(Fuel, maint.) are covered by the company
--2-3 weeks out 2-3 days home
--No toll reimbursement
--Trip pack at a small charge(I forget what it is)
--The truck I picked is a '05 freightliner columbia that has good suspension, no rust on the frame, nice on the inside and I'm checking the service records before I sign anything tomorrow (Wed., Dec. 3rd)

Also, I wrote a short business plan and took a 6 hour small business seminar before coming here. I know I've thought this out pretty well, but it's my first time doing it so what's the word?

I'm looking for whatever advice people want to throw my way.

Thanks all,
Fill-Up

what happens if you have to sit for a day or two between loads on a regular basis?
can you get out of the lp if they can keep you moving?
how about some details on the lp terms.
how much for the truck insurance?
they deduct money from your settlement for a mait account? how much?
how about posting your business plan?

[heavyhaulerss]

hey fillup.. it's o.k. not to name the co here. but letting someone know who it is can be very usefull to you. G-man has a lot of knowledge on this subject. you may try & om him. if you can find someone you has experience with this co, they might give you valuable insight as what to expect, as well as there rep on these lease purchase's.




I will tell you I know myself of personal people who have leased under similiar terms & it worked well for a while & as the term neared it's end & the truck would be owned outright, the co would then not give you enough loads to keep up with the payments at wich point the driver would get starved out & wind up letting the truck go back to co.

[asdfghjkl]

Take a week to think about the LP. If it is a great plan then it will still be a great plan next week. Remember that when you sign on the dotted line you are not accepting a job. In fact most will probably tell you that you are enslaving yourself to this carrier for the length of the lease. Not trying to rain on your parade but most will tell you that it may be better to BUY a truck. Then you can roam the trucking industry as a free agent. Talk to your accountant and lawyer before signing anything! My money says they would tell you to RUN AWAY as fast as you can. RUN AWAY and don't look back.

[Malaki86]

Something I may do is talk to my company about a LP deal. The difference I'll do, however, if possible, will be to try to get them to do a 6 month LP with a large buyout at the end of it. That way I'd know for sure if it's what I want to do before dropping $20-30k. If it doesn't work out for me, the company would get the truck back with an additional 60k or so of miles on it but has basically had free maintenance for the past 6 months.