[Malaki86]

I know that I'm going to get blasted for this, but I wanted to throw it out anyway:

The last time I was in the Indy terminal, I went in and talked to the guy that runs the l/p deal just to get some info (and to waste time). I've talked to 10-15 guys at Celadon who are currently doing the l/p and all seem to be doing well. Anyway, here's the breakdown for it:

Income:

$0.90 per mile, plus FSC for all dispatched miles. The FSC when I talked to him was $0.265 per mile.
$36.00 per hour Detention pay (After 4hrs, paid in 15 min increments, max $250/day)
$150 for loads delivering or originating in the NYC/Long Island area
Tolls paid east of Ohio

Expenses:

$375 per week truck payment (average 3-3.5 years, depending on the truck)
$0.10 per mile Tractor maintenance
$65.38 per week Physical damage insurance ($3400/year)
$8.75 per week Bobtail insurance ($35/year)
$41.54 per week Occ Accident Insurance ($2160/year)
$14.00 per week Qualcomm (Free install/removal)
$17.00 per week CBSI Tax Service
$28.00 per week Base Plates (1st year only)
$150.00 per week security deposit (1st 10 weeks only)
$50.00 per week for the 2290 (1st 11 weeks per year)

$0.04 per gallon fuel discount at Pilot/Flying J (paid at the end of each month)
I know there's a discount for tires purchased at any Wingfoot dealer.

At the end of the lease, the truck buyout is $5,000, which can be made as weekly payments of $200 until fulfilled (or lump sum payment). The l/p deal requires $0 down and is guaranteed to be approved.

As for what I would be responsible for, maintenance-wise, on the truck is only the windshield and tires. Anything else with the truck is covered 100% by the maintenance fee. Of course, any work done to the truck would have to be done at one of their shops, or at a shop approved by them.

Having driven there now for a little over 6 months, I know that with the trucks they have, the lanes they frequent and the type of freight, getting 7.0-7.5mpg is a definite possibility. I currently get 7.2mpg in the Prostar I'm in and I don't even try. I've done a spreadsheet comparing my current pay (before taxes) with what the same miles would get me as a l/p operator. The first 11 weeks I would see an average of a $50/week drop in pay, because of the 2290 & the security deposit. After that, I would go to almost identical pay. The following year (after the base plates), I would be averaging about $100 more per week.

I still have a couple questions for him, such as per-stop pay, if there's any refund on the maintenance fee if, by chance, the truck doesn't need any major work during the l/p period and if there's a refund of the security deposit.

Ok - enough from me - bash away. I'm really starting to lean towards this simply because I'm tired of being a company driver. 10 years in the business is plenty of time for me to know that I either need to take the next step or simply get away from it completely.

[Mackman]

Mal. Do you have any type of cash you can put down on a new truck?? I mean i got a 75,000 truck with 8,000 down. Payment is 1480/month for 5 years. But i have a+++ credit.

[Steel Horse Cowboy]

Sounds better than some other LP deals out there. Here's my questions i would ask:

Maintence is covered 100% by maint fund, but what if the repair is OVER the amount you have in your maint fund???

Can they cancel your LP at anytime? Thus leaving you high-n-dry like some have had done at Prime.....

The payments would avg to be about $1650 a month (some months have 4 weeks, some 5) this is for a NEW truck correct, not a used Celedon truck. If it is for a USED Celedon truck then in NO WAY is this a good deal. You'd be better off going to your bank and getting a loan for a $25,000 truck and going from their. You will save thousands upon thousands of dollars. And if your credit is not good enought to get a loan, then stick with being a company driver till you can get it better.

[Mackman]

Originally Posted by Malaki86

I'm really starting to lean towards this simply because I'm tired of being a company driver. .

You are still in a way going to be a company driver. Since you dont own the truck its not like you can take it and lease it on with someone esle if you wanted too.

[solo379]

Originally Posted by Malaki86

I would be averaging about $100 more per week.

$100! Wow! And if your truck in a shop for a week, or you get sick, or family matter.... all the deductions are still there? What about benefits, or you don't have any? I also believe you've said that tires is your responsibility? I wouldn't even bother to comment on that crap, but you seems to be a nice guy, and been here for a long time. Get real!

[Steel Horse Cowboy]

Originally Posted by Malaki86

The first 11 weeks I would see an average of a $50/week drop in pay, because of the 2290 & the security deposit. After that, I would go to almost identical pay. The following year (after the base plates), I would be averaging about $100 more per week.

WOW, I didn't even see this......... it is a NO BRAINER Mal, DONT DO IT !!!!!!

You would have to be a fool to even contemplate this. There is absolutely no benifit here.

You sound like most guys I know, they are tired of being a company driver, but in the end, it all boiled down to them being tired of driving a goverened truck. I know it sounds basic and dumb, but that was the just of it. If your unhappy being a company guy, why not try a different company, maybe a smaller outfit with nicer trucks and not speed limited...... just a thought. But if you go LP with all the research you have done, then you sir need to go flip burgers LOL

[GMAN]

One thing that you didn't mention in your post was how many miles, on average, you should be running. Another is the cost of fuel in your calculations. If you have been driving a truck for 10 years you should have had an opportunity to put some money back. You should at least have enough for a good down payment on a truck. If you have not been able to save money during that time, then that should be an indicator that perhaps this is not the way you need to be going. In your post you mentioned that you would be making less starting out with a l/p than you would as a company driver. If I could not make more with a l/p than as a company driver then I would not make the jump. Of course, I would not do a lease purchase anyway, but to get involved in one where I would be making less makes no sense. Another factor you should keep in mind is that there will ALWAYS be costs that are over looked when it comes to running a truck. You seem to have already made up your mind, but if it were me, I would either buy a truck outright or stay a company driver.

[Malaki86]

It's not the speed the truck goes. Hell, I've been in a goverened truck for 9 1/2 years of my 10 years driving. The place with the 'wide open' trucks was a disaster and I only stayed there long enough to get my time in to go somewhere else. The last smaller outfit I drove for (about 50 company trucks) was a craphole. I made piss poor money, drove a 2002 Freightliner pushing a million miles. I left because they wouldn't do repairs on the trucks, even after getting an inspection with about 7 or 8 violations. The only reason I stayed there for 3.5 years was because I was home 95% of the time on the weekends (if getting home late friday/early saturday and leaving at noon on sunday counts as the weekend off). They also had no clue what the term "hours of service" meant.

It's also not where I run or the freight I haul. I've worked for companies that weren't forced dispatch. But, because I hate to sit, I don't turn down loads - period. Dumb? Maybe. But it keeps the miles adding up.

What I'm getting tired of is all of the rules put on the drivers now. Not the "run legal, log 100% what you do, etc". It's more of the: don't idle your truck, even if it is 100 degrees and you're sitting in Laredo for 2 days. Don't idle when it gets 20 degrees out either - you have a bunk heater (ya, that's fine as long as the batteries are decent). Don't put an inverter in your truck even though having the ability to have a microwave in here would save me a fortune in food every week. I think what finally got to me was when I was in the shop the last time. My truck turned itself down in speed from 65 to 62 early this summer (within a few weeks of getting this truck) from having to run the truck to stay cool so I could sleep. Well, it's been over 2 months now since I've idled my truck for more than a couple hours total in a weeks time. I had the shop check to see if there was something wrong. Well, turns out that the idle time is cumulative for the total hours of the truck since the day Celadon received it. The truck is at 46% idle time overall (it's a 2009 with 225k miles). The time has to be below 40%. What happens is that they don't reset the idle times when a new driver gets in a truck. So, basically, I won't see a speed increase period. Again - it's not the actual truck speed that gets to me - it's the being punished for needing to, Heaven forbid, be able to not die of heat stroke.

No, the trucks aren't new that they're leasing. I 'think' they're 2008's and newer. A guy was signing his l/p when I was in there. He was getting an '08 Volvo 780. For maintenance, everything is covered (besides tires & windshield - period). If it breaks on the truck, they fix it and, no, no more money is owed, no matter what the cost.

[Mackman]

tires alone for 100 more a week in pay ain't worth it. I just spent 1,400 bucks on 4 new drives about 3 weeks ago. So that mean 14 weeks of no extra pay over a company driver. Steer tires are 500+ 2 of them thats another 10 weeks with out the so called 100 a week.

It doesn't add up. i would walk away from this deal.

Have you ever went to a mack or peterbilt or any type of truck dealer and sat down with a salesman. They do all that they can to get you in a truck of your OWN. My salesman at mack was a big help.

[GMAN]

If you have decent credit and some money saved it would make much more sense to buy a truck rather than get involved in one of these lease deals. If you want to lease a truck there are leasing companies that specialize in leasing trucks to new owner operators. Most want at least the first months payment. Some require first and last or perhaps as much as 3 payments down. The advantage in doing a deal with a regular leasing company is that your payments are likely to be less and you can take the truck anywhere you want.

If it is the idle time and speed that is of concern then there are other carriers that you may want to contact. Like Mackman suggested, you may want to sit down with a dealer and see if you can work something out to buy a truck. I would expect them to require a down payment of from 10-20% down. But, you never know. It is best to keep your options open.