US Express Lease Purchase

[Fuzeme]

The owner I work for is going to replace my current trk, which is a 02 Century, and old Interstate Dist. trk, with a 05 T-600, it will have a Cat backed up with a 13 speed. Now he leases/ sells trks to his drivers for a good price, they can drive the trk for a while to obtain the data they need to decide if they want to buy/ lease the trk.
So I think for me that will be a better way to go, I can test drive the trk for several months as company driver, if it turns out to be a money maker, I'll get into his lease program. That way I'm not changing companies, or leasing a trk I don't know, or have any data on.

If I do decide to lease from him, he will set up my accounting, insurance, escrow accounts, I will be a clone of how he runs his operation. He started out with 2 trks, now he has 27 and growing.

[Rev.Vassago]

If I do decide to lease from him, he will set up my accounting, insurance, escrow accounts, I will be a clone of how he runs his operation. He started out with 2 trks, now he has 27 and growing.

If he's like pretty much every other l/p company out there, once you start renting a job from him, he may be able to add 1 or 2 more to his fleet.

Best of luck.

[no_worries]

The owner I work for is going to replace my current trk, which is a 02 Century, and old Interstate Dist. trk, with a 05 T-600, it will have a Cat backed up with a 13 speed. Now he leases/ sells trks to his drivers for a good price, they can drive the trk for a while to obtain the data they need to decide if they want to buy/ lease the trk.

Does this at all make you wonder why he would do such a deal? He already has the truck and the driver, why would he turn around and lease the truck to the driver? He doesn't gain a truck, he doesn't gain a driver. In fact, he turns a driver that he had a decent amount of control over into a contractor whom he has much less control over. The only reason it makes sense is because he retains the same truck and driver but it costs him a heck of a lot less. So how does one account for the difference in cost?

[Fuzeme]

We're leased on to a really good company, he doesn't provide the loads, they do, so if I lease a truck I get my dispatch from this company, like I am now, and I get paid directly by this company. I then pay him the agreed upon amount for the trk. I watched another driver go through the program, and he is now 10 wks away from owning his truck. He started out with a year lease.

This owner is like any other dealer, and or leasing company, they provide the trk, your carrier provides the loads. Are truck dealers, leasing companies, and trk owners making money on used trks, of course, and the thing with this owner, he owns his own diesel shop, the trucking business is just a side thing he does with his shop.

All our loads come from the carrier he is leased on to, not from him.

[Rev.Vassago]

So why doesn't he just open a dealership, since you're pretty much saying he is like one of those "BUY HERE, PAY HERE" places. He must be making a killing on this. He lets you take all the risk, and simply provides you the rope to hang yourself, making a tidy profit in the process. He doesn't even need to do the work of finding you loads!

Wow....

[Fuzeme]

Well it really wouldn't be any different if I went to Freightliner or a KW dealer, what risk are they assuming if I buy a used truck from them? Can I get my tires, parts, and repairs at a discount through them? I think not.

They assume that if I am buying a truck from them, that I know the risks involved with owning a truck, the same with this situation, he will not put a driver in this program who is not willing to use good business practices. He told us " this is a business, and you have to run it like a business, and this business can put you under real quick if you are not careful."

No dealer, lease company, or truck owner is going to allow you to test drive a truck for several months to see if you want to buy it. And if I decide to stay in the truck at that point as a company driver, what have I lost? What has he lost? he still has me, and his truck.

[Rev.Vassago]

Well it really wouldn't be any different if I went to Freightliner or a KW dealer, what risk are they assuming if I buy a used truck from them?

None, and the price you pay usually reflects it.

Can I get my tires, parts, and repairs at a discount through them? I think not.

Nope, and you can't get them at a discount through this guy either. You can, however, get them at a discount through the company you lease to.

No dealer, lease company, or truck owner is going to allow you to test drive a truck for several months to see if you want to buy it. And if I decide to stay in the truck at that point as a company driver, what have I lost? What has he lost? he still has me, and his truck.

If you're going into business in a "trial run", you likely haven't done your homework first.

[Fuzeme]

Well we can get all that through him, even the fuel discounts he gets, if we continue to use his fuel card.

Tires, repairs, and parts can all be bought through him, because he owns a truck repair shop, but we can use any place we want, just a better deal going through him.

As far as the trial run with the truck, I would still be a company driver, in a company truck, if I decide to get into his program, at that point I would become a lease operator, in a lease truck, with our current carrier.

IF I go with US Express, I would be in a rental truck for 90 days, then they would put me in a '09 or '10 Pete, with weekly payment of 620- 667. They are all out of the Century's, a lot of folks are doing their lease program.

[Rev.Vassago]

Well we can get all that through him, even the fuel discounts he gets, if we continue to use his fuel card.

Tires, repairs, and parts can all be bought through him, because he owns a truck repair shop, but we can use any place we want, just a better deal going through him.

As far as the trial run with the truck, I would still be a company driver, in a company truck, if I decide to get into his program, at that point I would become a lease operator, in a lease truck, with our current carrier.

IF I go with US Express, I would be in a rental truck for 90 days, then they would put me in a '09 or '10 Pete, with weekly payment of 620- 667. They are all out of the Century's, a lot of folks are doing their lease program.

Why are you comparing the two? Why go into business for yourself at all? What do you have to realistically gain by going into business for yourself? What do you have to lose? Given the current market, going into business for yourself right now is an even bigger risk than it was a year ago.

But like I said earlier, the probability fallacy will rule, and you'll think you're the exception to the rule. Debating this is completely futile, as you've already made up your mind. Best of luck.

[Jumbo]

$667 a week is $2668.00 a month. WOW.

[Rev.Vassago]

$667 a week is $2668.00 a month. WOW.

Yeah, that's more than I pay for my 379 Peterbilt that I bought new. WAY more. Nothing like setting yourself up for failure right from the start. But hey - the OP knows more than the rest of us. After all, the guy who is gonna rent him a job started out with 2 trucks, and now has 27. And he's growing. And judging by the stars in the OP's eyes, now I know why.

[GMAN]

Yeah, that's more than I pay for my 379 Peterbilt that I bought new. WAY more. Nothing like setting yourself up for failure right from the start. But hey - the OP knows more than the rest of us. After all, the guy who is gonna rent him a job started out with 2 trucks, and now has 27. And he's growing. And judging by the stars in the OP's eyes, now I know why.

If he has 27 people renting his trucks at the rate mentioned, he is making a very good living by simply renting trucks. Perhaps I need to start renting trucks. I would probably make more renting them than running them.

[Flying W]

If what Fuzeme says is true for a US Xpress lease payment of $620 a week, it sure sounds like a great way to pay a driver half of minimum wage at best. I believe P.T. Barnum is a bit behind the times now when he said "There's a sucker born every minute."

"He will not put a driver in this program who is not willing to use good business practices. He told us this is a business, and you have to run it like a business." You'll have to give me a moment as I'm still laughing. Ah, much better. Why not, CR England has been doing it for years and is still around with drivers lacking common sense, let alone business sense?

I respect GMAN for his knowledge, and hope the advice he offers is listened to in your case. The description given of the planned lease would make me run the other way.

[Fuzeme]

You guys are getting two different situations mixed up, ok, US Express is leasing new to near new Pete's for around 620-667. You have to go through a 90 day period using a rental truck. If you stick it out for a year, you get a bonus, but no truck, if you want to continue leasing the truck, you can.

I am not in US Express leasing program, nor am I going to be in their program, I am not in any lease program. The truck I drive is owned by an owner who is leased on to a small carrier, that is growing, we got several new accounts last week, reefer loads. This carrier is 100% owner operator, no company drivers. Because the carrier is growing and profitable, and the miles are really good, and have been even in this recession, and with other companies closing their doors, this enables the owner of my truck to grow hence the reason he is adding more trucks.

I do want to say one thing, the info I have received from the many contributors on this board has caused me to walk away from the US Express program, after all who wouldn't want to drive around a new shiny Iron Horse. But if you are taken to the cleaners in the process, what's the point? I am seriously thinking about the program offered by my company, I talked with the owner of the carrier we are leased to and he thinks it is a good program for new owner Ops. Trucks aren't new, most have about 400,000 miles on them, just starting to get broke in.

[Flying W]

"I talked with the owner of the carrier we are leased to and he thinks it is a good program for new owner Ops." I can't argue with that as I'm 100% positive he thinks it is a good idea.

Do you have a rough idea what your expenses will be (by that I mean cpm), and what you'll be paid under this lease?

[no_worries]

You guys are getting two different situations mixed up, ok, US Express is leasing new to near new Pete's for around 620-667. You have to go through a 90 day period using a rental truck. If you stick it out for a year, you get a bonus, but no truck, if you want to continue leasing the truck, you can.

I am not in US Express leasing program, nor am I going to be in their program, I am not in any lease program. The truck I drive is owned by an owner who is leased on to a small carrier, that is growing, we got several new accounts last week, reefer loads. This carrier is 100% owner operator, no company drivers. Because the carrier is growing and profitable, and the miles are really good, and have been even in this recession, and with other companies closing their doors, this enables the owner of my truck to grow hence the reason he is adding more trucks.

I do want to say one thing, the info I have received from the many contributors on this board has caused me to walk away from the US Express program, after all who wouldn't want to drive around a new shiny Iron Horse. But if you are taken to the cleaners in the process, what's the point? I am seriously thinking about the program offered by my company, I talked with the owner of the carrier we are leased to and he thinks it is a good program for new owner Ops. Trucks aren't new, most have about 400,000 miles on them, just starting to get broke in.

Posters are making these assumptions because the only information you've given regarding truck payments is from the US Xpress program. Because those are the specifics you've asked about, everybody assumes that this other deal is similar in structure. If it wasn't, why bother asking about USX. Now, if you want to give information about what your truck payments and rates would be with your current carrier, I'll bet people would stop referencing the USX numbers.

[RostyC]

If he has 27 people renting his trucks at the rate mentioned, he is making a very good living by simply renting trucks. Perhaps I need to start renting trucks. I would probably make more renting them than running them.

You know........... and I hope this isn't taken the wrong way, but the short amount of time I've been in this business, sometimes I think you can make more money off of truck drivers than driving a truck.

[chris1]

You know........... and I hope this isn't taken the wrong way, but the short amount of time I've been in this business, sometimes I think you can make more money off of truck drivers than driving a truck.

Only the ignorant ones

[RostyC]

Only the ignorant ones

Yeah, that's what I meant, perhaps I didn't phrase it quite right.

[GMAN]

You know........... and I hope this isn't taken the wrong way, but the short amount of time I've been in this business, sometimes I think you can make more money off of truck drivers than driving a truck.

At one time I gave serious consideration to buying trucks and leasing them to drivers. If I did I would want to try to come up with a program that would be fair to the driver and myself. I pretty much came to the conclusion that if you make it fair for the driver that you will lose money. If you set it up like these big carriers do you could make a lot of money off of these drivers who want to rent a truck. I do think that many of them make more off the leases than the freight they haul.