[Steel Horse Cowboy]

First off, miles dont equal $$$$ as an O/O, accessorials and such make you more, plus percentage pay is usually MUCh better than mileage pay.

For example, I have always made more more money running short loads than long haul. I can do 2 250mile runs at $500 a shot a day, so thats $1,000 in my pocket eachday compared to a 2500 mile run at .90 a mile......

I honestly think you should look into working for a different company. You may be settled in, and know yours runs and lanes, but you seem to be unhappy there. Or just hang it up and go do something else all together....

[solo379]

Originally Posted by Steel Horse Cowboy

First off, miles dont equal $$$$

Well, it is in a way....But it's $$$$ out of your packet.

[GMAN]

Originally Posted by Steel Horse Cowboy

First off, miles dont equal $$$$ as an O/O, accessorials and such make you more, plus percentage pay is usually MUCh better than mileage pay.

In his situation miles do equal $$$$ since he will be running for mileage pay. As you mentioned, he could make more on percentage than mileage, especially at $0.90/mile. I don't remember any carriers who do lease purchase that offer percentage.

[Malaki86]

I've never had any luck whatsoever running % with companies. That's as a company driver pulling dry van. I won't touch a reefer (screw the grocery warehouses and unloading their freight) and I can't do flatbed because of my back. Nothing is decided yet, nor will it be within the next 6-9 months. I still have a couple of bills I want to eliminate before I take something like this on.

The main thing that worries me about outright buying a truck (or leasing one from an independent lease agent) would be having something major go wrong before I have a chance to save up any money. I'd hate the thought of putting a turbo on a truck after only a month or two. That alone would be enough to sink me.

[GMAN]

Originally Posted by Malaki86

I've never had any luck whatsoever running % with companies. That's as a company driver pulling dry van. I won't touch a reefer (screw the grocery warehouses and unloading their freight) and I can't do flatbed because of my back. Nothing is decided yet, nor will it be within the next 6-9 months. I still have a couple of bills I want to eliminate before I take something like this on.

I am glad to see that you plan on losing some debt before doing anything.

The main thing that worries me about outright buying a truck (or leasing one from an independent lease agent) would be having something major go wrong before I have a chance to save up any money. I'd hate the thought of putting a turbo on a truck after only a month or two. That alone would be enough to sink me.

This is a good reason to wait until you have some money put together in case something does go wrong with your truck. There are so many people who jump into getting a truck without any resources. It is a formula for failure. If you check out a truck before buying there is a good chance that it will do a good job for you, but anything can happen, even with a new truck. If replacing a turbo would sink you then perhaps you should wait until you can afford to replace it. Repairs are expensive. Unless you have the money or credit to make those repairs, you are out of business. I have seen this happen so many times over the years. A driver gets into a lease or is able to buy a truck without any money or credit and has a major expense. He doesn't have the money to get his truck repaired so he loses his truck and most everything else he owns. I have had to replace a turbo the last 2 or 3 years. The turbo alone cost over $1,500. With labor and parts I wound up with about $2,700 in the repair. If the engine is not a CAT the cost is less, but it is still an expensive repair. Last year I had to replace a transmission. The tow bill was $954. That is not something that is usually covered in any warranty. The truck was down for about a week waiting on parts. By the time the dust settled I had spent a little over $8,100 with the tow, motel and expenses. About 3 years ago I replaced the front power divider in one truck. Parts alone ran almost $1,000. I have since replaced the other rear. My truck was in Nevada with the rear end and I also had to replace a damaged oil pan. Total cost of the repair was about $2,700. In addition to the repairs you could have to pay for a motel, food, etc., which is not going to be included in ANY warranty. What I am trying to get you to see is that it is not cheap to operate a truck. I am not trying to discourage you from buying a truck, but you should be prepared for unexpected breakdowns or expenses. They WILL happen. If you have money saved then you can weather these expenses. If you start out on a shoestring you may do all right as long as everything goes well. The problem is that things don't always go as planned.

[Mackman]

Originally Posted by GMAN

If you start out on a shoestring you may do all right as long as everything goes well. The problem is that things don't always go as planned.

I started on a shoestring. After i got the truck no lie i had 1100 in the bank lol. Was it a smart move?? Hell NO. But it all worked out. If need be i had a credit card with a 17k limit. So if **** hit the fan i had it covered. Now i got alittle over 12,000 in the trucks bank account and i add to it every week. It keeps growing. Knock on wood nothing has yet to happen to the mack.

[Steel Horse Cowboy]

Originally Posted by GMAN

In his situation miles do equal $$$$ since he will be running for mileage pay. As you mentioned, he could make more on percentage than mileage, especially at $0.90/mile. I don't remember any carriers who do lease purchase that offer percentage.

That is what I was saying GMAN, I honestly do not understand how a guy can survive on .90cpm You know as well as I do seeing we have ran our own auth. that damn well Celadon is getting at least $1.50 for those loads if not more.

Only place I know of that does a lease with % is Schneider, but it's not a LP program, you have to buy the truck thru their finance company. But they give you % and also a load board to select from. My best friend runs on this, they call it their "Choice Program" and he is doing VERY VERY well.

Now to the fact that it is a USED 2-3yr old truck, with say 300K miles on it, and you will have to pay $1,600 month for 3 more years? That is just plain ridiculous. That truck will have been paid for 4 times over by then!!!
Not to mention that Celadon has these trucks for sale in the truckpaper for $30,000 outright

[GMAN]

If someone is running under a carrier's authority and helping them find loads, taking care of the IFTA, etc., they do deserve to make a profit. However, I would question how much profit would be considered fair in a situation such as this where Celedon is only paying $0.90/mile. A friend of mine pulls vans and he is getting a lot of loads around $2/mile and that is with one truck and getting his loads from brokers. He has been doing very well on his own. Some of these carriers are getting that much and more on at least some of their loads. As long as they can get drivers to work for $0.90/mile there is no reason to pay more. Most percentage carriers will pay owner operators about 65% with power only and about 75% if they have their own trailer. That doesn't necessarily include the fsc. I have another friend who pulls a flat and is leased to another carrier. He is averaging $1.47 for ALL miles and is doing a lot of deadheading. He hauls a lot of loads that pay him $2/mile with the fsc and after the carrier gets their cut. I know others who are leased to the same carrier who have not done quite as well. When someone works for percentage there is always a good opportunity to find decent paying loads.

If Celedon is selling those trucks for $30,000 then he could probably find one with a payment of about $500-600/month. That is much less than leasing it from Celedon. I believe someone else mentioned Schneider and them paying percentage. I thought that they discontinued that program. In any case, he could get a much lower payment if he bought the truck from an outside source, or at least found his own financing.

[Malaki86]

I was looking at trucks from Arrow Trucking. They have 2007 Volvo 780's autoshift in the low to mid 30's. Yes, I'd much rather buy, if/when I decide to do it.

[RostyC]

Mal, you're smart to wait. That deal is something I would run from. Save some money, buy you're own truck and either lease on with a good company or get your own authority. It's worth the wait to have your OWN truck, then you can make all decisions about your business. Be prepared though, owning a truck can be just as rewarding as it is stressful.