Lease Purchase with CRST Malone
 

Hi guys,

My Husband is new to the trucking industry. He has about 9 months of experience. He's had a hard time finding a company that he's happy with. He started off as s flatbed driver with Falcon, out of Gary Indiana. He ran his butt off. His pay was 22% of the cost of the load. The problem was that they had him deadhead at times. His paychecks were awful, $600-700. Now he's with JB Hunt in their intermodal division. When he first started, he got all the miles he wanted. He was consistently getting 2500-3200 miles per week. Now he's fighting to get the miles. I guess he's talked to other drivers with JB and this happens.

Now he's talking with CRST Malone about a lease purchase. It's a 3 year lease. From what I read, most of you guys don't recommend it. I've talked to the recruiter, she said that he'll get paid 75% of the load. We live in Northwest Indiana, so there's plenty of steel out here to haul. She said that their drivers deadhead less than 10% of the miles that they drive. Since we live in Indiana, she said that getting the loads won't be a problem. The truck payment is about 300 per week. When you add in the insurance, gas advance, permits, trailer rental, securement equipment payment, the total weekly payment is amount $1600.

My husband is so excited about doing this. He really wants to get out there and work, so he thinks that CRST will give him the freedom to choose his own outcome. The recruiter keeps saying that he'll average about $1.68 per mile and that what he makes depends on how hard he wants to run. I just want to make sure that we won't have to fight for loads.

I guess my question is do any of you have any experience with this company? Are the loads there?

My husband and I know that this will be a lot of work. We know that we'll have to save for emergencies and such. I'd like to know if you guys are really happier doing this versus being a company driver? My husband thinks that there's good money to be made by doing this as long as you're willing to work.

Thanks in advance for your feedback.

Re: Lease Purchase with CRST Malone
 

From what I've heard, steel is generally a cheap load. 75% of 0 is still 0.

Your fuel costs are obviously off, because you could easily spend $1600 per week in fuel alone.

You didn't add in a lot of things to this, such as maintainance, repairs, tires, taxes, etc. Your $1600 per week could very easily become a lot more than that.

Why not go through traditional financing, and put a down payment on a truck through a dealer? If you cannot afford a down payment on a truck, I can guarantee you cannot afford to be in business for yourself.

A $300 per week lease purchase payment is obviously on a used truck - that means higher maintainance, repairs, etc.

Do you have $15,000 to throw into an engine overhaul?

GMAN should be along shortly to help you with CRST

The $1600 a week total came from CRST. That total does include maintenance through a CRST approved facility. I know were not going to get rich off of this, especially starting out. Regardless if we get a truck through CRST or a dealer, we'll have to worry about expenses that we didn't have to worry about as a company driver. My point is, in the long run, are the headaches of being an o/o worth it?

Not on a lease purchase program.


Go to a Rent A Center, and see how their program works. A lease purchase is the same.

My point is, in the long run, are the headaches of being an o/o worth it?

It's all relative-I can't comment on CRST Malone because I was never a O/O with them.
Remember with L/P you are under their Thumb-GMAN Leased with them I believe so he'll be able to tell you their ball park Rates.

that is sad if people can do that to someone who wants a rig and to start a business. but to do it to a retard who cant live with out a 60 inch tv is funny and he deserves it.

Some evil marketing geinus combined Rent-to-Own with Bling Bling and volia! RTO Wheels!

http://www.detnews.com/2005/autosins.../C03-69726.htm


At least you can enjoy the game or playing your Xbox on a big TV.

well, you kind of answered your own question

2 jobs that he did not like.
This is not a problem you can always leave and find a job that fits your needs.
What happens if he does not like CRST ?
He signed for 3 years.
That's 3 years of you hearing him complaining.

I recently heard that defaults on truck leases are at an all time high. Why is that?

It sure is a great feeling and thought of being your own boss, but it takes %200 work and stress. Don't lease! Save your money and buy a truck and be able to pay it off from day 1!

I am sure your husband is a great guy, but if he can not stick with two companies in 9 months, he will not be happy making lease payments on a truck that will not be his in 3 years. Stick with working for a company until you can come up with the cash to purchase a truck. It does not make sense money wise. The companies would not be doing this if it did not make them money. Do not do it!