Lease Purchase Flaws
 

Do me a favor take a look at these lease/purchase programs and show me the flaws. The pay package is at the bottom. Potential CDL Independent Contractor Solo
Weekly Truck Lease Income

Below figures are only projections; actual income will vary based on individual performance. Projections do not include quarterly income taxes or health insurance.

Weekly Mileage 3,180
Annual Mileage 165,360

REVENUES
Base @ 87 cents/mile $2,766.60 per week
Safety Bonus of $450 per qrtr $34.61 per week
Performance Based Bonus* $1,600.00 first 4 months $30.77 per week
Total Revenue $2,831.98 per week

EXPENSES
Truck Payment $614.00 per week
Fuel @ 6.3 paid mpg fuel cap of $1.25** $630.95 per week
Maintenance @ $0.05 mile*** $159.00 per week
Variable Mileage Payment @ $0.03 mile**** $95.40 per week
Insurance $138.04 per week
License/Permits/FHUT $56.26 per week
Qualcomm $15.00 per week
Admin. Fees $8.46 per week
Fuel/Road Tax @0.015 pm***** $47.70 per week
Total $1,764.81 Per Week

INCOME $1067.17 per week
ANNUAL INCOME $55,492.72 Annually



*The $1600 performance based bonus is paid over four 28 day periods @ $400 per period. To be eligible, a mileage threshold of 11,600 must be met per period.

**Independent Contractors pay for their own fuel with a company fuel card and never pay more than $1.25 with the company's Fuel Cap program.

***This includes money going into the maintenance reserve. 5 cents/per mile go into the maintenance reserve until it caps at $10,000 - used to pay for maintenance charges over $500. Unused reserve is refunded upon completion.

****1 cents per mile of the variable mileage payment is refunded as a completion incentive at lease end.

*****1.5 cents per mile for all dispatched miles will be collected for fuel/road tax payments.

or
The PREMIER LEASE Program

For those drivers ready to make a long-term CDL Lease Purchase commitment, we have a company that offers The PREMIER LEASE:

Truck payment is $548 per week

- OR -

Truck payment is $521 per week if you order 90 days in advance

There is NO variable mileage charge

Governed at 75 mph

Driver has the opportunity to order a customized state-of-the-art truck

Maintenance is capped at $5,000 instead of $10,000

Special Note: The PREMIER LEASE Program provides approximately 30% more income per year compared to the original lease. For further information please contact us.

What is the pay package?

<100 Miles $1.50 601 - 700 Miles $0.90
101 - 200 Miles $1.25 701 - 800 Miles $0.88
201 - 300 Miles $1.10 801 - 900 Miles $0.88
301 - 400 Miles $1.00 901 - 1,000 Miles $0.88
401 - 500 Miles $0.96 1001 + $0.87
501 - 600 Miles $0.93 Unload/Deadhead Miles $0.87

Re: Lease Purchase Flaws
 

Well, that's a pretty good program, WITH A WHOPPING .87 CENTS PER MILE. Great truck payment, too....$614.00 per week? Looks like bull$hit to me. 3180 miles per week? Bull$hit again. Your not going to get those miles all of the time, if you get them at all....you will be doing good to get 2200-2500 miles per week.

Stop wasting our time with your bull$hit advertising for that bull$hit company. Anybody who has ever been on this board knows one thing. Flease programs only benefit the company. And this board has rules about companies trying to advertise their bull$hit lease programs to drivers without paying for ad space. And any company who already has a contract with this board don't need a bull$hit poser advertising some bull$hit lease program.

One last thing. I personally feel insulted that you would even think that any driver on this board is that stupid to go for a bull$hit program like that. BULL$HIT! And if your not with that company, RUN FROM THAT COMPANY AS FAST AS YOU CAN!! Because if you can't tell that's a bull$hit program, you better spend some more time in a truck before you ever go into a fleace program. :twisted:

Stop acting like an ass. I don't work for this company. I just wanted some honest feedback, not some jerk chewing on my ass. And please learn how to spell, you have the dirty mouth part mastered.

Got to agree with Cluggy on this one.

3200 miles per week, every week, is not realistically obtainable.

Secondly there is no way to guarantee that the truck will obtain the MPG listed.

Third, as an "independent" your taxes will be higher than that of a company driver, thereby further reducing your "take home" pay.

Fourth, if you want health insurance, your monthly premiums are going to be a lot higher because as an "independent" you are going to have to find and purchase it yourself.

Finally, if you can not make it driving no more than 2500 miles per week with any company, regardless of being an O/O or company driver, you are working for the wrong people.

Averaging 3180 a week, and working the full 52 weeks in a year to reach 165,360 just isn't going to happen.

This is the CRE Lease, btw. Search here for further information, CRE does not have a good reputation on this board.

They no longer pay the safety bonus.

Maintaining paid 6.3mpg is going to be tough. Yes, you may get 6.3 overall, but not 6.3 paid, so there is a chance of getting booted out of the fuel program and having to pay pump price with a fuel rebate.

The maintenance fund is now at 8cpm.

The variable mileage payment is also 8cpm.

License/Permits/FHUT, Qualcomm, and admin fees are no longer taken out of the settlements.

To qualify for the premier lease, you have to complete at least a one year lease. There are trucks available to lease with terms from 6 months to 3 years. If you lease a new truck at three years, you cannot become a premier leaser until you have completed that lease. Or, you can lease a 6 month truck, then another and complete your year to become premier.

Now, with all that said...

I am leasing from CRE and I am doing very well. How is it I can do well when so many others fail? Luck of the draw? I doubt it. This is a business, not an easy way to make quick money. Being your own boss is not all it's cracked up to be. You have to be serious about making this a success. Nobody is going to do it for you, there isn't going to be anyone holding your hand and showing you what to do every day.

I think a big part of why I am doing well is that I got into a dedicated fleet that has more than enough miles to run. I take one day off a week and am bringing home 850+ a week for now, plus I am home just about every night. In August this account will add a new section that will increase the miles available. Being home every night and having that day off a week probably won't happen after that. Of course, the bring home pay will go way up in return. I'll run hard, then come home for a reset and head out again.

I am not convinced that a national fleet OTR driver can make it with this lease. Between loading, unloading, lumpers, tolls, wait times, etc... I just don't see that someone could run enough miles consistently enough to make a go of it.

There are several dedicated accounts with good miles and other perks that are available which I think make success possible for someone with the right mindset and a good work ethic.

Are you an experienced driver with at least 3 years OTR? Accident/Incident free? No late loads? Good work history? Good driving record? Drug free? Are you ready, willing, and able to work you ass off for very little return to begin with before you see good money?

Dan

Pal, I am a ass, and a jerk. I'm glad you don't work for this company. Many posers have come to this board, and other boards as well, looking for a newbe to sucker into a fleace program such as this.

You need to research this board on lease programs....And hopefully, you'll never be taken advantage of by companies like that one.

Good luck.

I appreciate you guys taking it apart for me. I didn't think it was realistic, but they make it look so good.

Cluggy
Thanks for wishing me good luck I'm sure I'll need it. I'm certainly not looking any futher at a lease/purchase program. Sorry I lost my cool, I'm sure you were only trying to get my attention. Which you did!(lol)

I already make that, and if something happens to my truck the company I work for has to fix it on their dime. How is it worth it?

Re: Lease Purchase Flaws
 

come on, dont hold back, tell us how you really feel