US Express Lease Purchase Program (I think this site is just and advertisement)
Details on the site are weak, especially any sort of buyout. Almost makes me think there isn't one. I've never understood the logic behind escrows, and they have two of them equaling 7 CPM (5 CPM maintenance and 2 CPM tires). Do you get that money back with interest at the end of the lease?
Weekly costs:
* Fixed Cost Century
* Tractor Payment $ 444.23
* Physical Damage Insurance $55.38*
* Bobtail Insurance $15.00
* Occup. Accident Insurance $32.77**
* Satcom Rental $15.00
* Highway Use Tax $10.58
* Weekly Fixed Cost $572.96
I'm assuming the asterisks mean you can purchase these elsewhere. So we have a monthly cost of $2,291.84.
Assume you can get 10,000 miles per month and that's 23 CPM. Add in the two escrows and you're at 30 CPM. Fuel right now at 6 mpg will cost you about 45 CPM, now we're at 68 CPM.
Looking at truck paper there's tons of century's in the 25-40k range in that model year. The total lease payments equals $23,100.00 plus buyout(whatever that is...)
Owner Operators - U.S. Xpress, Truck Driving Jobs, Class A CDL Jobs, Hiring Drivers, Truck Driving Opportunities, Contracotrs, Lease/Purchase
Seems to be the correct website, with a better explanation of compensation. They use a sliding scale system like CR england, and the pay is not very good.
Lease/Purchase - U.S. Xpress, Truck Driving Jobs, Class A CDL Jobs, Hiring Drivers, Truck Driving Opportunities
"Average 91 CPM plus FSC"
What is the FSC? Average price right now is 2.65. Using the industry standard:
(2.65 - 1.25) / 6 = 23 CPM
91 CPM + 23 CPM = 114 CPM
$1.14 CPM X 10,000 miles = $11,400
$11,400 - cost (10,000 miles X 68 CPM) = $4,600 or 46 CPM, which is about what a good company would pay including drop pay.
What if you have a 6,000 mile month?
Your fixed costs shoot up to 38 CPM + 7 CPM escrew, add in fuel and you're at 83 CPM cost. That leaves you with 24 CPM, doesn't sound so good now does it?
I don't see any mention of drop pay, multiple drop pay, border crossings, do you pay tolls or do they, on and on.
If that doesn't convince you to stay away, here are the steps you should take:
1) Get a copy of both the lease agreement and o/o agreement. Have a lawyer look over both. If you don't understand the difference, we can explain that to you. If they won't give you copies, don't bother. Keep looking.
2) Do a monthly cost analysis. Use 6,000 miles, 8,000 miles, and 10,000 miles. How much did you make at the end of the month? If it is equal to or less then what a good company would pay you, what's the point of the extra risk? If it is more, how much more, and is that worth the extra risk?
3) Do a cost analysis on the truck. Do you get the truck at the end of the lease? Is the truck in good shape? Are they trying to lease it to you way above market value? Would you be better off just buying the truck on your own?