Right or wrong, I'm doing it
 

Well, I'll know for sure if I'm doing it or not after I talk to one more department in the next couple of days, anyway.

I'm going to Schneider as a Lease-Operator. I'll be on their 'Pick Your Own Freight' dry-van board. I've been talking to a lot of the current lease-operators and they're all more than happy with everything about the division as well as how their lease is working out. Most likely, I'll be in a 2015 Freightliner Cascadia Evolution. The drivers that are in those same trucks, mainly staying in the southern half of the country are averaging 8mpg. They also offer Kenworth T680's & Peterbilt 579's. Soon (I'll find out how soon in the next day or two), they're going to have Volvo's, as well. I'm assuming those are the 780's. All of the trucks come with an engine-off anti-idle A/C system. You can also have a Tri-Pac installed at a discounted price.

One thing I like about their lease is how it's structured. When you get a new truck, you don't sign to keep the truck until the lease is finished. You initially sign a 1-year lease. At the end of that year, you have options available: Continue to keep/pay off the current truck, Get into another brand new truck with a 1 year lease, Transfer to a company driver position or Walk away from it all. As of right now, I have a large portion of the operating costs. I still have to get the truck lease amount, comprehensive truck insurance and maintenance account requirements.

I've been a company driver for 14 years now. Over the past years, I've wanted to buy a truck, but can never get anywhere with saving money up. So, if I'm going to do this, this seems like my best option available.

Like I said - it might be the best thing I've ever done, or it might be the absolute worst decision of my life. Either way, I have to do it, just to prove to myself.

I hope it all works out for you

What do you want to prove? You want to do it? Fine! I wouldn't mention, that in general, that's a bad idea, and since you have an option to get out, why not? What i will say, that according to your own words, you are not good with the money, and that's mean you are looking for trouble. Otherwise good luck, and keep us posted. Any questions,- don't hesitate to ask...

Good luck, Malaki. It is difficult to make it in business without being able to manage your money. Where some guys get into trouble in the beginning is to not put money back. You really need to consider putting a fixed amount or percentage of any earnings back. I know some who only take a salary out of their settlement and put the rest into savings. They NEVER touch that money unless they have a major breakdown. If you get into the habit of saving it will soon become second nature. You won't even miss the money. It will surprise you how quickly it will grow. Just saving $100/week can give you over $5,000 in just a year. It is important to put enough money aside to take care of any major breakdowns. I hope you keep us posted as to how you are doing with the new venture.

My plan is to pay myself a set percentage and the rest stays in the business account. The truck will be new, so that should definitely help me with not having out-of-pocket money for breakdowns, at least in the beginning.

As for not being able to handle my money, it's hard to handle what you don't have. My average pay as a company driver is around $550 per week (take home). Of course, since the company I drive for likes older equipment, I've spent quite a bit of time sitting along the highway or at garages. With that, I have to pay every household bill, plus everything that it takes to live out on the road, plus for my wife at home.

I wish best of luck to you. Just make sure the truck payments and insurance don't overwhelm you or run you into ground.

don't forget to set aside tax money too.

Everything is set up. I'll be getting a 2015 Cascadia Evolution. I start orientation in Green Bay, WI on Sept 8th (I wanted sooner, but they're booked solid until then).

Good luck. I assume they pay the 2290, ifta tags and what not? Well.. On your behalf?

LOL - correct. They "front" everything for you. No out of pocket startup costs unless I wanted a premium truck. A premium truck to them is anything other than the Cascadia. With a premium truck, there's a $5,000 minimum down payment.

Good luck......a friend of mine did the exact same thing with Schneider, went all the way, and took the truck with him when he left.

BUT........ He went everywhere, never deadheaded and stayed out 3 to 5 weeks at a time, he was single then and living at home, he never talked actual $$$$ figures, but I'm guessing he did all right.

Once it was HIS truck he left and went to Mercer, bought a step deck and never looked back.

Today the 07 386 Pete he bought has 1.1 million on it.................

I did the same thing when I leased the company I did when I bought my truck. Though they didn't do the 2290. But the lack of paperwork was great the first year.

I can't remember if they said they file the 2290 for me the following year or not. She did mention that they pay it out of the "company" escrow account. I'll find that out when I go to orientation.

I've been talking to about 15 people that are doing the same lease-purchase, pulling the percentage fleet (book your own freight) and they're all more than happy. Most seem to be in the range of $5-6,000 per week income to the truck, with about $2,500 remaining after all expenses (minus income-tax). I know the first few weeks will be the worst while I try to find the best freight lanes. It definitely helps with the freight base that Schneider has. One day, one of the other lease guys looked and there was over 6,500 loads available in the US that day. It also helps with the 'power' of Schneider, with all of the fuel discounts and such. Also, the Cascadia Evolution's are averaging about 8mpg @ 70mph while running the flat ground (which I prefer to do, as well). They also come equipped with the ParkSmart idle-free heating/cooling system.

Good luck buddy! I hope it all works out for you.

I hope it's as good as it sounds

I did some power only for them a few months ago and they always had plenty of freight. Hope it works out for you.

You know what they say, don't you? Well Malaki86 has been here for quiet some time, and seems to be a good guy, so i wish him all the luck. Just count the money...!
,

I called today to see if I could get my start date moved up a couple of weeks. Turns out that my truck isn't even built yet. Well, it's scheduled for production this week.

Now *THAT* is a new truck - new enough that I can't even start yet because it doesn't exist.

so how much is the payment going to be on that shining wonder?

The truck is $800 per week, plus $81 per week into the maintenance account. That's with no down-payment on a 1 year lease.

Wow! That's all i could say....

Thats $3467 per month for the truck payment. I dont want to come off sounding like all the naysayers that come on these forums and tell people they will fail because I believe you when you say you spoke to people that have done well with this. But lets at least not make these leases sound like they are somehow a good thing. You need almost $3500 in revenue each month just for the truck payment. At $800/ week you need 571 miles @ $1.40/ mile every week to make that payment. Then you have to add in fuel and other variable costs of doing business, its safe to say margins will be thin. I use $1.40 because dry van freight just doesnt pay that great so Im hoping Schnieder has better paying freight than the national average.

Dry van spot freight was doing pretty well this summer in the low $2/ mile range but Im sure Schneider takes a portion of that rate before they quote it to their drivers so rates might be in the mid to high $1/ mile range ( just a guess). Trucking as an O/O is a game of averages since you will have good weeks and bad weeks, good months and bad months ect ect.. The funny thing about averages is that they fall fast but rise rather slowly. This is because if you lose 10% you need to make 11% back to break even. So while Im sure money can be made you have to be careful an be excellent at managing your business when your expenses are so high. Good luck with this program I hope it works out well but its easy to see why so many fail. Here is a chart of percentages so you can see when an average drops why its so hard to get back to even:

Percentage Loss Percent Rise To Breakeven
10% 11%
15% 18%
20% 25%
25% 33%
30% 43%
35% 54%
40% 67%
45% 82%
50% 100%

I just ran the numbers for a loan to purchase the same truck (same price of $147,000). With a 7.5% APR, no down payment, on a 48 month note, the payments are $3,554.30 per month.

that's not the issue.



The issue is as a business owner, you wish to keep your fixed monthly expenses as low as possible.Having a $3500 fixed lease payment is almost impossible to maintain for an extended period of time.Seasonal slow times you will be drowning in that payment trying to make it an d all the other bills you have.
Even my lease company I have has told me on new ventures, they don’t like to see a payment over $1500 per month.
Companies that are established, they don’t like to see much past $2250-2500, MAX monthly payment

Good Luck

Malaki, if you don't mind..How is this program works? I mean %... And stuff like that..

Most of this is copy/pasted from a PDF file they sent me. Hope it helps.

Edit: after talking to probably 15-20 different drivers on the percentage side, the average pay per mile, including FSC, is around $1.50-1.65. I haven't seen anyone say they've taken under $1.50, but sometimes they'll see loads that pay up to $2.20 or so. Those rates are the rates to the truck, not to Schneider.

You have a choice between percentage and mileage pay. Mileage pay is a set rate (I forget what it is) + FSC. Percentage is 65%, plus 100% collected FSC and 100% of any accessorial pay (unload, extra stop, etc).

Mileage paid O/O's are scheduled loads by a dispatcher. Percentage paid O/O's schedule their own loads via Schneider's load board.

• No trailer rental fees
• No Qualcomm fees (installation or monthly)
• Tolls - Schneider pays or reimburses tolls in New Jersey, New York, Maryland, Delaware, Pennsylvania, West Virginia, Massachusetts, Maine, New Hampshire, Illinois and Oklahoma. You will receive a transponder in orientation with an ezpass in it. Add’l $15.50/month to add prepass to transponder
• Fuel card - EFS card used to fuel trucks and can get up to $325 cash advance on card. Fuel
  purchased Monday by midnight will be taken out of the following Friday settlement (It doesn’t matter
  when load delivers). Discounts for fuel on cash price ($.05 savings from pump price) Ambest $.03,
  Petros, TAs, & Loves $.05, Pilot’s & Flying Js range is $.08 - $.24 off per gallon. 400 gallon per day
  fuel limit. Operating centers reflect the lowest fuel price in the state. Fuel cards can be used at
  hundreds of stops. Owner operators do not have to use fuel card, it’s their choice.
• No set required amount of time away from home (on the percentage side, anyway. I don't know about mileage side)
• Paid weekly (all loads done by Monday are paid the same Friday)
• Passenger Insurance - $2.65/wk
• HazMat loads pay an additional $25. Other O/O's say the mileage rate is about the same
• BT Insurance - $8.05/wk
• Escrow - Van Escrow-$50/wk for the 1st 20 weeks until reaches $1000; you will get this money back if you term your lease with Schneider as long as you return the Qualcomm and don’t have any outstanding balances with Schneider
• Base Plates/Permits – Schneider offers plates and permits at the discounted rate of $32 per week, less a $50/yr admin fee. Total is $1,650/yr. Schneider plates are apportioned out of the state of Indiana. If an owner-operator has their own base plates, they need a cab card/registration for all 48 states. Schneider will provide permits for $43/year.
• Occ Acc/Work Comp Insurance - $154/m through TrueNorth ($35.45/week). Owner-operators can get insurance on their own, but must have $1 million in coverage. For teams, each person needs coverage. Sign up is during insurance presentation during orientation.
• Fuel Tax (IFTA) - Schneider automatically figures amounts and provides monthly statements, not based on fleet average, it’s where driver fuels and roads they drive on. Deduction is once per month (4th full week of every month). Shop/Maintenance will put IFTA stickers on truck during orientation.
• Settlements - Direct-deposit into a checking account, EFS card or split pay into both. Settlements are paid every Friday for bills received in GRB by Monday at 5pm.
• Orientation Details - Orientation starts every Monday and goes for 4 days for percentage program and 3 days for mileage program. Schneider provides hotel (we ask you to share a room). Owneroperators will be paid $.50 per mile to bobtail to orientation. If bringing a person/pet-will need to confirm availability & pay for own room upon arrival.

• Mileage Only - All loads are pre-assigned to maximize utilization. If a pre-assigned load does not meet your requirements, a secondary load may be assigned. This program is not forced dispatch.
• Choice program – 65% of 100% of LOH rate, 100% of FSC pass thru, 100% of select accessorials (hand load, hand unload, stop offs, diversion/reconsignment, pallet jacking); we pay for lumpers, call lumper hotline; must have laptop with nationwide internet access, will need inverter installed or plug in to cigarette lighter for power. If they don’t deliver the load they are moving on, a $400 charge will be issued to recover costs incurred. They will receive a percent of payment for the miles they moved the load. A leader will have to contact dispatching and find a driver to move the load.

• Loading/Unloading - Must be able & willing to do so. 70% of freight is drop and hook. For mileage only you get $100 for full unload, $50 for partial. Schneider pays for lumpers to hand unload (use Tcheck).
• Truck requirements:
   Age limit of truck is 10 years or newer
   Needs to be equipped with an ECM (electronic control module to hook-up a qual-comm)
   Sliding 5th wheel is required, no wiggle room allowed
   Tractor weight fully fueled should be 20,500 lbs or less
   Wheel base 260 inches or less (exceptions can be made on a reviewed, individual basis)
   Tractor will be DOT inspected the first day of orientation. Make sure brakes are adjusted, no holes in the exhaust system, lights work, reflectors are in place, tires are legal, check for oil/fluid leaks, no cracks in windshield, no wiggle room in 5th wheel.
   Remove decals and lettering before the truck inspection. If our mechanics remove decals/lettering it will cost a minimum of $62. Mechanics charge by time and materials, so cost varies.

Dont seem like enough. anyway good luck and keep on updating

Well, you'll never know, unless you try... But it just doesn't seems right. I wish you the best luck, and count your money...!

Tomorrow morning I'll be heading to Green Bay, WI for orientation starting Monday. On Thursday, we're released from orientation and take possession of the trucks. After that, anytime I want to scream at my dispatcher, I'll be standing in front of a mirror.

What happens at the end of the 1 year lease?

At the end of the 1 year lease, you have the option to continue the lease on the current truck to payoff, you can do another 1 year lease on another new truck, you can walk away.

Just say if you want to continue lease. How long till the truck is 100% paid off?? Also does your payment of 800week stay the same the whole time??

You beat me to it Mackman....

I can't answer that right now, but I will ask that question ASAP at orientation. I do know that there's no balloon payment at the end. You can also make larger payments if you can/want to.

I really wish I could be positive about this, but at 1.50 per mile and the price of fuel what it is, I think you'll be lucky to put a thousand dollars a week in your pocket after all expenses. If your only goal is to have a new truck, then you have it, but if your goal is to be an owner operator, then you're still a lease operator, and hopefully you can walk away with this truck. Remember, you don't own anything till it's paid for. My hunch is that by the time you get the truck paid off it will have 900,000 miles on it and you've worked for years for company driver pay. At first it will feel like freedom, but in the end it will be a sacrifice that you'll have to make or you'll lose all you've got invested up till that time. Personally, if I was gonna do that program, I'd do it with a cheaper truck and double your income. They will all haul the diapers down the road. Remember, these companies use lease operators to cover extra freight in the good times, and their company drivers when freight is scarce. It sounds like you are bound and determined, so I say good luck, but since the truck isn't even built yet, I'd look for another way........

Malaki86, you've really got some real friends on here that have spoken to you in very reserved tones and with a lot of wisdom, which tells me they are real friends, because being somewhat of an outsider and not being on the board for a while, when I first read this thread I was thinking your friends should arrange an intervention. lol.

My friends usually just grab me and shake me, so I'm not used to this.......

I'll play the other side. Everyone has to start somewhere. When I bought my truck it was a lot cheaper then what he's doing. But... I was running rail containers. I was told average was 1.50 a mile. Never calculated it... Didn't care. I did what I needed to do. Worked my ass off. But I also worked smart. Very smart. I started July 1st by the end of the year the truck made $86k. Might not be a lot to some but it got me to where I had to be. I do hope it works out. But it'll only work if YOU figure it out.

I'm still waiting to get a chance to talk to the finance department about the total length of the lease & what the payments are like if you pay the entire truck off. I do know that the payments are different depending on the length of lease you sign. My lease is for 52 weeks. The truck payment is $800 & maintenance of $81 per week. A guy sitting beside me is doing a 104 week lease. His payment is approx $750 plus $150 maintenance per week. So, the length you're signing for definitely affects it. At the end of my 52 week lease, my truck will have a residual value of $119,000 which would be the amount you would finance to pay the truck off. The starting value of mine is $148,000.

The gave us "guest" access to the Choice load board yesterday. While there are a lot of loads in the $1.50-1.65 range (your share with FSC included), I can stay within 300 miles of my home in northern WV and make $2.50-3.00 a mile all day, every day. These are mainly short-haul and heavy, but they're there. I found a load yesterday that went from Wheeling, WV to Chambersburg, PA that paid well over $1,000 total. It's also a drop-hook at both ends. So, a 5hr trip for a bit over $1,000. Pretty good in my book. Yes - that is the rate paid to the truck, not to SNI.

Left out of Green Bay this afternoon to start my new career. They bobtailed us all out, at a rate of $0.90+$0.41fsc. I'm picking up an empty trailer in Belvidere, IL, then going to Milwaukee to pick up a load for Charleston, WV that delivers on Monday. I had to go through the house, so this works out good for me (I'll be there Saturday). This load is paying the truck $1,195 (95 empty, 546 dispatched miles).