Just talked to JB Hunt

[Scout]

Here's the email he sent me

J.B. Hunt Lease-Purchase Program


Lease-Purchase Driver Compensation Package:

85 cpm, loaded or empty, for OTR lease-purchase contractors
Fuel surcharge based on DOE average weekly price (adjusted weekly)
$300/mo credit for each month remaining on lease to reduce residual (thru 12/29/06)
Non-mileage / Accessorial pay, as follows:
§ $35 per additional stop, between pick-up & delivery
§ $2.25 per 1,000 lbs loading/unloading (company lumper service available)
§ $20 pallet jack use, per load
§ $50 for delivery/pick-up in any of the five boroughs of New York
$75 per day for attending Orientation
$50 payment, should lease truck not be available
Short-Haul Pay
Shuttle Pay of $25 per hour plus miles for local shuttle
Discounts on fuel, tires, maintenance, and labor
Referral bonus paid for drivers hired/contractors leased with J.B. Hunt
Base plates & permits paid by company
Scale tickets reimbursed by company
Toll cards & passes issued (same as company OTR driver)
Paid weekly (each Friday) via direct deposit or ComData®
Access to services at J.B. Hunt shops and outsourced maintenance vendors
Maintenance Service Agreement offered
Full voluntary benefits package available


Benefits

Lessee will forfeit all benefits enrollments
Lessee will terminate status as company driver prior to signing lease; upon termination, all company benefits will be discontinued
Lease Drivers may inquire about Cobra insurance coverage by contacting the Benefits department; J.B. Hunt 401k enrollments will also terminate


Equipment

§ No major modifications are permitted; Lessee may not make alterations that can’t be removed without damage to the unit (ie— paint, accessories requiring holes be drilled)

§ All major repairs must be coordinated with MOC. All maintenance, other than oil changes, must go through the IC Maintenance coordinator to insure quality of service and utilize truck warranty.

§ Lessee will be required to complete monthly maintenance reports of all work completed on the truck; reports must be turned in by the 15th of each month for the previous month. Reports are treated with the same priority as missing logs.

§ Quarterly maintenance inspections are required; J.B. Hunt will pay for the inspections, but all work required for trucks to pass inspection is the responsibility of the Lessee.


Taxes and Deductions

Lease drivers are responsible for self-employment taxes (all local, state and federal taxes, as applicable). J.B. Hunt does not deduct these taxes from weekly settlements.

Lease drivers are responsible for all fuel use taxes. If the driver fuels within J.B. Hunt’s fuel network, $.01 cpm will be deducted from the weekly settlement for fuel taxes to be filed quarterly. A federal Heavy Vehicle Use Tax (aka: 2290) of $550 per year will also be deducted/filed for the driver.

Deductibles are applied, in the amounts of $1,500 for property damage and $500 for cargo claims. The lease driver is responsible for the first $1,500/accident reserve for physical damage on a preventable accident or incident. If the reserve is below the amount paid by the driver, the difference will be reimbursed. Likewise, for reserved amounts on cargo claims. There is a $1500 deductible for third-party property damage; a $1000 deductible for damage to the drivers’ own tractor; $500 deductible for cargo claims.

With-holdings and deductions will be made from the weekly settlement, as follows:
§ Truck payment: approx $1500 to $2000/ mo, based on model and odometer on unit selected
§ Fuel costs: all charges for the prior week
§ Insurance: Bobtail, $20/mo; Physical Damage, approx $130/mo; Occupational Health, $118/mo
§ Maintenance/Road Service: for charges closed out during the prior week
§ Fuel taxes, as calculated by fuel purchases; deducted weekly with fuel charges. (If fueling outside the company network and fuel receipts are not turned in to the fleet manager, the company will figure tax liability by the IRS auditing formula and charge for each quarter.)
§ Admin fees: Annual $50 admin fee; $20 Road Service charge per occurrence: $10 Comcheck® fee for personal advances
§ Equipment usage fees: $25/mo OBC usage
§ Escrow payments: $100/wk until total equals $3,600 for security deposit. The security escrow will only be released within 45 days upon termination of lease. A voluntary escrow fund may also be set up, at the driver’s request. This fund is accessible Monday through Friday, during normal business hours. (Examples of contribution rates: $.08 per mile for a 2002 lease unit; $.05 per mile for 2004 or 2005 model tractors.) * Driver may opt to use an accountant through ATBA (provided by the company) for a rate of $16.25 a week; this is optional but encouraged.

* If a driver terminates the lease, he is responsible for all maintenance charges to bring that truck back to Freightliner® trade specs. If the driver lacks the funds to cover maintenance costs, the remainder will be taken from his required escrow. The driver must also pay any repossession charges associated with bringing the truck to Lowell or Louisville to be released. The lease also contains an early termination penalty; if a driver terminates before completing the lease, there will be a charge of $100 per week, up to $3600, for the remainder of the lease period.


Process for Company Drivers Transitioning to the Lease Program

Driver will be notified of acceptance into the Lease Program
Driver will be notified of acceptance into the Lease Program
Driver will be scheduled for orientation in Lowell or Louisville
Fleet Manager will be notified and will route driver to home terminal to clean out truck and be terminated as a company driver
A rental car will be provided for the driver to travel to orientation
Drivers will go through a 4-day orientation class and be dispatched immediately


Benefits

Benefits are offered to Independent Contractors through USNow as of January 1st, 2006. USNow is not a division of J.B. Hunt, but an outside insurance provider that offers our contractors the opportunity to receive benefits at affordable group rates. For more information please call 1-800-694-9888, ext. 524. Contractors attending orientation at the Louisville terminal are also offered a second option, provided by TransAmerica through the Thomas Wilson Group; an outline of services is available by calling 1-866-893-1168.

USNow

Choice of medical plans
Dental coverage, monthly: Driver $14; Driver & Spouse $27; Driver, Spouse, & Children $28; Family $40
Vision coverage, monthly: Driver $2; Driver & Spouse $3; Driver, Spouse, & Child $3, Family $4
Disability, monthly: approx $2 to $5, depending on benefit level
Life insurance, Guaranteed Issue for entire family: up to $13, depending on age and smoking status
Cancer coverage, weekly: $4.43 to $12.23
Professional services (including accounting and tax prep), weekly: $16.25

TransAmerica

Three medical plans to choose from, no limitations for pre-existing conditions
No paperwork, enrollment completed over the phone
Convenient bank draft or credit card payments accepted
Dental coverage (pays 100% for preventive care), weekly: Driver $5.17; Driver & Spouse $10.20; Driver & Children $10.52; Driver & Family $15.50
Vision, weekly: Driver $2.38; Driver & Spouse $4.59; Driver & Children $3.83; Driver & Family $6.05
Disability, Term Life/Critical Illness & Accident coverages also available

A.T.B.S.
American Truck Business Services is the largest business services provider in the country serving the specific business needs of owner operators. A.T.B.S. expects its driver-clients to earn 32 percent more money than the average owner operator by using its services. A.T.B.S. provides each client a personal business consultant to develop a personalized budget, handle all of your bookkeeping with an emphasis on saving the client’s time. A.T.B.S. services include personalized budgeting, bookkeeping, monthly income statements, industry comparisons, state and federal tax preparation and unlimited business consulting. The cost is $16.25 per week.

and

Lease Purchase Weekly Budget Worksheet
68 mph


2500 miles 2750 miles 3000 miles
Truck Payment approximate! $480.00 $480.00 $480.00
Insurance $75.00 $75.00 $75.00
On Board Comp. $6.25 $6.25 $6.25
HVUT/2290 $25.00 $25.00 $25.00
Req. Escrow $100.00 $100.00 $100.00
Fuel Cost (cut idle time by 25 to 30%) $857.00 $943.20 $1029.60
Fuel Tax $25.00 $25.00 $25.00
Maintenance Esc. $125.00 $125.00 $125.00
ATBS $16.25 $16.25 $16.25
Total weekly expense $1709.50 $1795.70 $1882.10
Total Revenue of Truck $2700.00 $2970.00 $3240.00
Safety Bonus $25.00 $25.00 $25.00
Driver referral bonus ($300 per driver) $75.00 $75.00 $75.00
Owner/operator bring home pay $1090.50 $1274.30 $1457.90

On the phone I was told it would take 3 years to pay off the truck.

After reading O/O threads here I somehow don't believe theat I could make 85 cpm and still bring home $1000 to $1400 a week.

[mike3fan]

After reading O/O threads here I somehow don't believe theat I could make 85 cpm and still bring home $1000 to $1400 a week.

Of course not,don't be silly.

BTW my truck payment is $1,627 a month and I can take it any where I want and make twice as much if not more.just because they take things out by the week does not make it better.

Save your money,BUY your own truck and lease on to a good company that pays a percentage of the linehaul on the load and then you can make it even when fuel gets to $4 a gallon.

[mike3fan]

On the phone I was told it would take 3 years to pay off the truck.

36mos at $2,000= $72,000,for a used JB Hunt Freightliner,these guys have great scam going,I wonder how many times they get to lease the same truck over and over?

[farder]

85 cpm=RUN AWAY FAST, IMO.

[Fredog]

Here's the email he sent me

J.B. Hunt Lease-Purchase Program


Lease-Purchase Driver Compensation Package:

85 cpm, loaded or empty, for OTR lease-purchase contractors
Fuel surcharge based on DOE average weekly price (adjusted weekly)
$300/mo credit for each month remaining on lease to reduce residual (thru 12/29/06)
Non-mileage / Accessorial pay, as follows:
§ $35 per additional stop, between pick-up & delivery
§ $2.25 per 1,000 lbs loading/unloading (company lumper service available)
§ $20 pallet jack use, per load
§ $50 for delivery/pick-up in any of the five boroughs of New York
$75 per day for attending Orientation
$50 payment, should lease truck not be available
Short-Haul Pay
Shuttle Pay of $25 per hour plus miles for local shuttle
Discounts on fuel, tires, maintenance, and labor
Referral bonus paid for drivers hired/contractors leased with J.B. Hunt
Base plates & permits paid by company
Scale tickets reimbursed by company
Toll cards & passes issued (same as company OTR driver)
Paid weekly (each Friday) via direct deposit or ComData®
Access to services at J.B. Hunt shops and outsourced maintenance vendors
Maintenance Service Agreement offered
Full voluntary benefits package available


Benefits

Lessee will forfeit all benefits enrollments
Lessee will terminate status as company driver prior to signing lease; upon termination, all company benefits will be discontinued
Lease Drivers may inquire about Cobra insurance coverage by contacting the Benefits department; J.B. Hunt 401k enrollments will also terminate


Equipment

§ No major modifications are permitted; Lessee may not make alterations that can’t be removed without damage to the unit (ie— paint, accessories requiring holes be drilled)

§ All major repairs must be coordinated with MOC. All maintenance, other than oil changes, must go through the IC Maintenance coordinator to insure quality of service and utilize truck warranty.

§ Lessee will be required to complete monthly maintenance reports of all work completed on the truck; reports must be turned in by the 15th of each month for the previous month. Reports are treated with the same priority as missing logs.

§ Quarterly maintenance inspections are required; J.B. Hunt will pay for the inspections, but all work required for trucks to pass inspection is the responsibility of the Lessee.


Taxes and Deductions

Lease drivers are responsible for self-employment taxes (all local, state and federal taxes, as applicable). J.B. Hunt does not deduct these taxes from weekly settlements.

Lease drivers are responsible for all fuel use taxes. If the driver fuels within J.B. Hunt’s fuel network, $.01 cpm will be deducted from the weekly settlement for fuel taxes to be filed quarterly. A federal Heavy Vehicle Use Tax (aka: 2290) of $550 per year will also be deducted/filed for the driver.

Deductibles are applied, in the amounts of $1,500 for property damage and $500 for cargo claims. The lease driver is responsible for the first $1,500/accident reserve for physical damage on a preventable accident or incident. If the reserve is below the amount paid by the driver, the difference will be reimbursed. Likewise, for reserved amounts on cargo claims. There is a $1500 deductible for third-party property damage; a $1000 deductible for damage to the drivers’ own tractor; $500 deductible for cargo claims.

With-holdings and deductions will be made from the weekly settlement, as follows:
§ Truck payment: approx $1500 to $2000/ mo, based on model and odometer on unit selected
§ Fuel costs: all charges for the prior week
§ Insurance: Bobtail, $20/mo; Physical Damage, approx $130/mo; Occupational Health, $118/mo
§ Maintenance/Road Service: for charges closed out during the prior week
§ Fuel taxes, as calculated by fuel purchases; deducted weekly with fuel charges. (If fueling outside the company network and fuel receipts are not turned in to the fleet manager, the company will figure tax liability by the IRS auditing formula and charge for each quarter.)
§ Admin fees: Annual $50 admin fee; $20 Road Service charge per occurrence: $10 Comcheck® fee for personal advances
§ Equipment usage fees: $25/mo OBC usage
§ Escrow payments: $100/wk until total equals $3,600 for security deposit. The security escrow will only be released within 45 days upon termination of lease. A voluntary escrow fund may also be set up, at the driver’s request. This fund is accessible Monday through Friday, during normal business hours. (Examples of contribution rates: $.08 per mile for a 2002 lease unit; $.05 per mile for 2004 or 2005 model tractors.) * Driver may opt to use an accountant through ATBA (provided by the company) for a rate of $16.25 a week; this is optional but encouraged.

* If a driver terminates the lease, he is responsible for all maintenance charges to bring that truck back to Freightliner® trade specs. If the driver lacks the funds to cover maintenance costs, the remainder will be taken from his required escrow. The driver must also pay any repossession charges associated with bringing the truck to Lowell or Louisville to be released. The lease also contains an early termination penalty; if a driver terminates before completing the lease, there will be a charge of $100 per week, up to $3600, for the remainder of the lease period.


Process for Company Drivers Transitioning to the Lease Program

Driver will be notified of acceptance into the Lease Program
Driver will be notified of acceptance into the Lease Program
Driver will be scheduled for orientation in Lowell or Louisville
Fleet Manager will be notified and will route driver to home terminal to clean out truck and be terminated as a company driver
A rental car will be provided for the driver to travel to orientation
Drivers will go through a 4-day orientation class and be dispatched immediately


Benefits

Benefits are offered to Independent Contractors through USNow as of January 1st, 2006. USNow is not a division of J.B. Hunt, but an outside insurance provider that offers our contractors the opportunity to receive benefits at affordable group rates. For more information please call 1-800-694-9888, ext. 524. Contractors attending orientation at the Louisville terminal are also offered a second option, provided by TransAmerica through the Thomas Wilson Group; an outline of services is available by calling 1-866-893-1168.

USNow

Choice of medical plans
Dental coverage, monthly: Driver $14; Driver & Spouse $27; Driver, Spouse, & Children $28; Family $40
Vision coverage, monthly: Driver $2; Driver & Spouse $3; Driver, Spouse, & Child $3, Family $4
Disability, monthly: approx $2 to $5, depending on benefit level
Life insurance, Guaranteed Issue for entire family: up to $13, depending on age and smoking status
Cancer coverage, weekly: $4.43 to $12.23
Professional services (including accounting and tax prep), weekly: $16.25

TransAmerica

Three medical plans to choose from, no limitations for pre-existing conditions
No paperwork, enrollment completed over the phone
Convenient bank draft or credit card payments accepted
Dental coverage (pays 100% for preventive care), weekly: Driver $5.17; Driver & Spouse $10.20; Driver & Children $10.52; Driver & Family $15.50
Vision, weekly: Driver $2.38; Driver & Spouse $4.59; Driver & Children $3.83; Driver & Family $6.05
Disability, Term Life/Critical Illness & Accident coverages also available

A.T.B.S.
American Truck Business Services is the largest business services provider in the country serving the specific business needs of owner operators. A.T.B.S. expects its driver-clients to earn 32 percent more money than the average owner operator by using its services. A.T.B.S. provides each client a personal business consultant to develop a personalized budget, handle all of your bookkeeping with an emphasis on saving the client’s time. A.T.B.S. services include personalized budgeting, bookkeeping, monthly income statements, industry comparisons, state and federal tax preparation and unlimited business consulting. The cost is $16.25 per week.

and

Lease Purchase Weekly Budget Worksheet
68 mph


2500 miles 2750 miles 3000 miles
Truck Payment approximate! $480.00 $480.00 $480.00
Insurance $75.00 $75.00 $75.00
On Board Comp. $6.25 $6.25 $6.25
HVUT/2290 $25.00 $25.00 $25.00
Req. Escrow $100.00 $100.00 $100.00
Fuel Cost (cut idle time by 25 to 30%) $857.00 $943.20 $1029.60
Fuel Tax $25.00 $25.00 $25.00
Maintenance Esc. $125.00 $125.00 $125.00
ATBS $16.25 $16.25 $16.25
Total weekly expense $1709.50 $1795.70 $1882.10
Total Revenue of Truck $2700.00 $2970.00 $3240.00
Safety Bonus $25.00 $25.00 $25.00
Driver referral bonus ($300 per driver) $75.00 $75.00 $75.00
Owner/operator bring home pay $1090.50 $1274.30 $1457.90

On the phone I was told it would take 3 years to pay off the truck.

After reading O/O threads here I somehow don't believe theat I could make 85 cpm and still bring home $1000 to $1400 a week.

you will NEVER pay off the truck, that's why you cant modify it, they want it the same when the next sucker leases it

After reading O/O threads here I somehow don't believe theat I could make 85 cpm and still bring home $1000 to $1400 a week.

Of course not,don't be silly.

BTW my truck payment is $1,627 a month and I can take it any where I want and make twice as much if not more.just because they take things out by the week does not make it better.

Save your money,BUY your own truck and lease on to a good company that pays a percentage of the linehaul on the load and then you can make it even when fuel gets to $4 a gallon.

I think i saw on another thread about this same JB lease thing that an ownwer/op said right now with these fuel prices its taking .50-.60 per mile just to cover fuel expenses so you do the math after that on .85 cpm...even with a killer surcharge(which i believe theirs is under the curve) .85 per mile isnt taking you anywhere except back home with a pitiful excuse for a pay stub.

[Ian Williams]

You drive 600 miles and what do you get?

another day older and deeper in debt.

Saint Peter, don't you call me, 'cause I can't go;

I owe by soul to (Insert Crappy L/P Company here).

If you can't afford a functional truck on your own $20-35k just remain a company driver. Its way less risk for the same take home.

[merrick4]

I know someone that just finished this lease thing after 3 months. I told him not to do it but he was going to be different. Like everyone else he figured he'd run hard and he would be able to make it. And to be honest for the first few weeks he was doing ok.

He signed up for the program where for $.10 a mile he had all maintenance covered. He ended up bumping the bumper or putting a small dent and like a fool he asked them to fix it during a PM. Well they fixed it all right. They replaced the whole thing and that wasn't covered under the plan and the following week he got a $0 check as the bumper was more than his check. That is he worked for free all week.

He actually could deal with the fact that he had to replace a bumper but he couldn't understand why they would take his WHOLE check and not take it out over the course of a few weeks. So all his bills at home went unpaid.

The following week he grossed like $3,000 or so but only saw $400 because he still owed for the bumber. In the end he grossed about $6,000 or $7000 over the course of a few weeks and only saw $400 of it.

He quit and did the right thing and took the truck back to the terminal that he got it from by taking a load there. The following week $0 in his check. Didn't read the part of the contract that says you just can't walk away that there are penalites.

The funny thing is when he went to get the truck which was abandoned from the last driver, he was looking through the guys logs and saw that the guy was getting plenty of miles. He couldn't understand why the guy quit. Sure you can get plenty of miles but they have people much smarter than all of us writing these contracts. Remember anything is possible with lots of money and an unlimited supply of free labor which is what you will become.

If you think you are going to be different then go ahead and try it. Let us know how it turns out.

[Totino]

$300/mo credit for each month remaining on lease to reduce residual (thru 12/29/06)

Lol, seems like the recruiter was copying and pasting some old info?

[Scout]

You drive 600 miles and what do you get?

another day older and deeper in debt.

Saint Peter, don't you call me, 'cause I can't go;

I owe by soul to (Insert Crappy L/P Company here).

If you can't afford a functional truck on your own $20-35k just remain a company driver. Its way less risk for the same take home.

That's just it, I'd rather go through a bank than a company, the bank won't try to screw you at the end of your lease.


BTW, he called to verify orientation and I turned it down.

[doctorfillgood]

dont forget the 9,000 to 17000 $ balloon payment due at end of the lease or didnt they mention that part. better ask its true

[dollarshort]

What people fail to think about all the time is "Bring Home" is not necessarily "Bring Home" Figure in personal income taxes of about 22%,
as well as health insurance and other incidentals. You will soon realize that your true "Bring Home" will be more like $500-$750 per week.

All those headaches just so you can pretend to be an owner operator.

[nickbtubas]

i never see JB hunt lease/ops in the truck stops and i wander why????

[doctorfillgood]

and of course 22% in taxes is for fed tax so if you have to pay state tax fig in another 7%-12% making more like 30-34 cents on every $ going to taxes.not saying you cant make money by being a owner Op ppl do it everyday.
if your going to make it as a owner op one of the biggest mistakes ppl make is NEVER EVER lease your trk from the company that controls the freight you haul or more times than not you'll find if nothing eles you'll always make just enough to pay your trk,ins,fuel payment. take it from someone who seems to learn almost everything the hard way but always the first time i was told the samething on here when i started out i didnt listen.

[BMiller]

Even after 13 years in this business it still amazes me how many suckers with CDL's are running loose. You would think someone who doesnt know this business would think to talk to someone who does. JB Hunt has a well deserved bad reputation. Anyone who is stupid enough to work for them shouldn't cry and moan when they get screwed. Plenty of info on them if you are smart enough to look and listen. Avoid them at all costs.

[OKtrucker]

BMiller wrote:
Even after 13 years in this business it still amazes me how many suckers with CDL's are running loose. You would think someone who doesnt know this business would think to talk to someone who does. JB Hunt has a well deserved bad reputation. Anyone who is stupid enough to work for them shouldn't cry and moan when they get screwed. Plenty of info on them if you are smart enough to look and listen. Avoid them at all costs.

Is Cluggy back among us???

What people fail to think about all the time is "Bring Home" is not necessarily "Bring Home" Figure in personal income taxes of about 22%,
as well as health insurance and other incidentals. You will soon realize that your true "Bring Home" will be more like $500-$750 per week.

Don't forget that a company driver gets 401K matching, paid-holidays, and paid-vacations. As a L/P operator you get nothing and like it.

All those headaches just so you can pretend to be an owner operator.

Yup.

[OKtrucker]

Just remeber what P.T. Barnum said...

[redsfan]

and of course 22% in taxes is for fed tax so if you have to pay state tax fig in another 7%-12% making more like 30-34 cents on every $ going to taxes.

Wow, 22% just in federal taxes! What country is that in, Canada? I don't pay 22% with Fed, SS and State all included and I claim all 5 dependents. I think you mean that you'll pay somewhere in the neighborhood of 8%, at least I hope that's a closer guestimate.

[OKtrucker]

redsfan:
Wow, 22% just in federal taxes! What country is that in, Canada? I don't pay 22% with Fed, SS and State all included and I claim all 5 dependents. I think you mean that you'll pay somewhere in the neighborhood of 8%, at least I hope that's a closer guestimate.

Just curios what world you live in? I used to be in the 28-32% bracket and yes that is in America.
With all your dependents you must get a great refund, of course that means you gave your "Uncle" your money to use for free all year, not something I am willing to do.

8% in taxes, hard to believe!!