Stand and Deliver

[Fuzeme]

Will be getting my L/P truck next week, a '04 Cat powered KW. It has been a great truck in our fleet, and the only reason the current driver is coming out of it, is because he's getting a new truck. It will be getting a major going over from tires to motor before I get into it, and then the owner wants me to drive it for a while to make sure it is the truck I want.

Our carrier is getting us great miles, despite the slow down. Payments will be around $400 a week, I will be using the owners fuel card so I can get the same discounts he gets, if I use the carriers fuel card, it will cost me $40 each time the card is loaded. With the great miles, payments I can handle, a great accountant, and business advisor, I should do okay.

[mike3fan]

Will be getting my L/P truck next week, a '04 Cat powered KW. It has been a great truck in our fleet, and the only reason the current driver is coming out of it, is because he's getting a new truck. It will be getting a major going over from tires to motor before I get into it, and then the owner wants me to drive it for a while to make sure it is the truck I want.

Our carrier is getting us great miles, despite the slow down. Payments will be around $400 a week, I will be using the owners fuel card so I can get the same discounts he gets, if I use the carriers fuel card, it will cost me $40 each time the card is loaded. With the great miles, payments I can handle, a great accountant, and business advisor, I should do okay.

Good luck Bro.........

[RostyC]

Do you own the truck in the end?
400 a week for a payment is too much money. That's 1733.00 a month.
Just for the heck of it I looked at an 05 Kenworth W900 for 39,900. That payment would be 972.00 (roughly) a month.
Why not buy your own truck and lease on to this company?

[Fuzeme]

I wouldn't want a w/9 or 379 Pete, I drove both as a company driver, and both use too much fuel for me. My best fuel day with either one, didn't even come close to my worst fuel day with the Century I drive now.

The monthly payment is all my fixed costs combined, yes there are some newer trucks that seem to cost less. But with this one, I have all the historical data concerning fuel costs, all the maintenance that was performed and why. With your W/9 you may not have access to that same data.

But even with all that, something bad can happen, and I could be out of business in no time.

[sgreer78]

40.00 to load a fuel card is obscene. I though my last company I was leased to at 6.00 per load was bad....

[mike3fan]

But even with all that, something bad can happen, and I could be out of business in no time.

Why would you be out of buisness if something went wrong?

Obviously just starting out you will have plenty of cash already saved up.

I know you wouldn't be dumb enough to start out with a bunch of debt and not have plenty of cash for any unforseen expenses in the first six months right?

It's still a buisness, just because people are more than willing to lure you into it with a "seems to good to be true" pitch doesn't mean you don't need to follow good buisness practices.

[Fredog]

Why would you be out of buisness if something went wrong?

Obviously just starting out you will have plenty of cash already saved up.

I know you wouldn't be dumb enough to start out with a bunch of debt and not have plenty of cash for any unforseen expenses in the first six months right?

It's still a buisness, just because people are more than willing to lure you into it with a "seems to good to be true" pitch doesn't mean you don't need to follow good buisness practices.

I agree, we have a guy who leased on a month ago, last weekend, he had to have new wheel bearings and spindles, cost was 2500 bucks, he had to borrow it from the company, great way to start out!!

[Justruckin]

Will be getting my L/P truck next week, a '04 Cat powered KW. It has been a great truck in our fleet, and the only reason the current driver is coming out of it, is because he's getting a new truck. It will be getting a major going over from tires to motor before I get into it, and then the owner wants me to drive it for a while to make sure it is the truck I want.

Our carrier is getting us great miles, despite the slow down. Payments will be around $400 a week, I will be using the owners fuel card so I can get the same discounts he gets, if I use the carriers fuel card, it will cost me $40 each time the card is loaded. With the great miles, payments I can handle, a great accountant, and business advisor, I should do okay.

No Comment...

[GMAN]

No Comment...

[Justruckin]

Hi Gman, I think you know what I am thinking. He is paying way to much for that truck, I think we all know that. And God only knows what other little hidden fees this company has in store. Forty dollars to load a fuel card? Now that is just wrong on so many levels. If it were me, I would run from this deal, and run and run...

[mike3fan]

No Comment...

post *****?

[Fuzeme]

$40 to load a fuel card, is the reason I am not using my carriers fuel card, I will be using the same fuel card I'm using now, I will get the same fuel discounts as the owner does, he will only charge me $.01 per mile to use the card.

And don't get me wrong guys, I value your advice, you saved me from the US Express get rich L/P program. And now I'm going to pick your brains a bit, ok, here we go:

How do you figure the cost per day if your truck is idle?
How do you figure the cost per mile to drive your truck?
What do you do to control your fuel costs?
How many miles do you run to break even?
And how much should you pay yourself for driving?

I'm just looking for examples, you don't have to give actual figures.

Thanks.
Fuze.

[GMAN]

$40 to load a fuel card, is the reason I am not using my carriers fuel card, I will be using the same fuel card I'm using now, I will get the same fuel discounts as the owner does, he will only charge me $.01 per mile to use the card.

That comes out to about $0.05-0.07/mile just to use his card. You could get your own card and save the money or get an advance from your carrier or just use your own money. You could wind up paying this guy more than your carrier to load your card. I would sit down and compare the numbers.

And don't get me wrong guys, I value your advice, you saved me from the US Express get rich L/P program. And now I'm going to pick your brains a bit, ok, here we go:

How do you figure the cost per day if your truck is idle?

Take all your fixed costs and divide by the number of days in the month. Then multiply that figure by the number of days idle.

How do you figure the cost per mile to drive your truck?

Take all of your fixed costs, add in variables such as fuel, maintenance and then divide by the number of miles driven. You can estimate in the beginning.

What do you do to control your fuel costs?

Slow down and drive like you have an egg under your fuel pedal. Check fuel costs along your route and plan accordingly. Compare fuel taxes and fuel costs to get your actual cost of fuel. Sometimes it is better to buy in the higher fuel cost states, other times it is best to buy in the cheaper states.

How many miles do you run to break even?

It is different for everyone. You need to do the math. Take all your costs and the rate in which you are running and see the break even point.

And how much should you pay yourself for driving?

Some people pay themselves a flat salary each week. Others pay themselves by the mile as though they had a driver in their truck. You could also pay yourself a percentage of the rate as driver pay. It is a personal decision.


I'm just looking for examples, you don't have to give actual figures.

Thanks.
Fuze.

Sorry to be a bit vague, but some of the answers you are seeking will vary from one person to another.

[mike3fan]

Sorry to be a bit vague, but some of the answers you are seeking will vary from one person to another.

And he should already know them, or atlest have an understanding of how to get them.......where is BigDiesel when you need him.

[GMAN]

I suppose that I could clarify one thing. Your fixed costs are things that are the same each month, such as your equipment payment, insurance, etc., For instance, if your payment is $1,000/month and insurance is $250/month then your monthly fixed costs are $1,250/month. That means that your daily fixed costs are $1,250/30 (days in a month) = $41.67/day.

Variable expenses are things like tires, fuel, etc., You can allow a certain amount of money per mile to get those averages. Fuel costs can change daily. You can take the national fuel cost and divide by the mpg you get on your truck for that cost. I usually break down those costs by the mile. The national fuel costs are published every Monday. If the average cost is $2.50/gallon and your truck gets 5 mpg, then your operational costs for fuel is $0.50/mile. I usually calculate my fuel costs at 5 mpg. Costs should ALWAYS be calculated high and income low.

Oil changes cost about $200-300. Sometimes you can find them at a special rate. I paid $169 the other day. I would say the average is around $250. Your operational costs for this will depend on how much you pay for oil changes and the frequency. I change my oil at 15,000 miles. Some change at 10,000. Others may extend out to more than 20,000 miles. If you change at 10,000 miles and pay $250, then your operational costs should be about $0.025/mile (if I have calculated correctly). Tire costs will also depend on how much you pay for a tire and how long it lasts. You can extend the life of you tires with proper maintenance. Just make sure you check tire pressure regularly. I usually allow about $0.05/mile for tires.

[Justruckin]

When I was running, just closed up shop a few months ago, my nut was $1.20 a mile to break even after expenses. And that $1.20 fluctuated, towards the end, I was doing just as much dead heading as I was loaded. And trust me, I tried to pick my areas, but after awhile, the good areas dried up and the rates collapsed everywhere. Then factor in all of the sitting at truck stops and looking for freight, it was to the point it was costing me money. Near the end, in June of 09, I was not even breaking even, just moving freight for free. And when I did make money, it was not even worth mentioning, hardly a profit, just coffee money.

Just not worth it in my book. And looking at the numbers, fuel costs, maint., taxes, collapse of the dollar, lack of freight, companies that were starving for credit, etc... I said it was time to hang it up.

And my equipment was paid for.

Not saying you would have my luck, as I am in Michigan and depended on the automotive/manufacturing industries to keep me running. By Sept of 08 many of my long time customers had closed their doors. I moved over to general freight and found that it was just not worth my time and energy.

[BigDiesel]

With the umpteen numerous posts on how bad a lease purchase is, why does anyone respond to their questions ??? I honestly don't care anymore....... They are just another soon to be statistic who is under funded without any business experience.... But by golly they are an "owner-operator".......

[LOAD IT]

With the umpteen numerous posts on how bad a lease purchase is, why does anyone respond to their questions ??? I honestly don't care anymore....... They are just another soon to be statistic who is under funded without any business experience.... But by golly they are an "owner-operator".......

Give him some advice he wants to hear BigD, he may be the first Lease Operator to make it BIG!!

[Heavy Duty]

With the umpteen numerous posts on how bad a lease purchase is, why does anyone respond to their questions ??? I honestly don't care anymore....... They are just another soon to be statistic who is under funded without any business experience.... But by golly they are an "owner-operator".......

You forgot
With the great miles, payments I can handle, a great accountant, and business advisor, I should do okay.

Did his "great business advisor" send him to CAD to learn?

[Orangetxguy]

Give him some advice he wants to hear BigD, he may be the first Lease Operator to make it BIG!!

Not leasing the truck from the man whom owns that truck.....and has it leased on with a "Carrier".


The man whom owns the truck will make money. The "Carrier" the truck is leased to will make money.


The kid is just gonna pay to have a job. Pay dearly too! He be gonna pay da man dat own da truck. He gonna pay da man dat own da "Carrier". An den he gonna be da man dat pay ta haul da product dat git carried by da truck.