General Question?

CR England has on their Web site ,for leasae purchase, an item that is called "Variable Mileage Payment" Computed at $0.14 per mile with $0.01 going into a Interest bearing truck investment fund, to be used as a down payment on a future truck purchase or for upgrades on future truck lease. What & where is the other $0.13 cents going or used for? For the annual compusation for a Solo driver that can be a healthy hunk of change.

What exactly is Variable Mileage Payment? I think I know but want to make sure I am thinking right. Possibly a driver who has leased from CR England can explain.
I would like a good explanation not some wild answers to down a company.

Thanks in Advance

MR C

 

MR. C;

I know that CR England pays a little more for very short runs than they do longer ones, but in the end, CR England will screw you to the bone.

No "wild answer" here, but if you are even considering CR England, then turn around and run like hell. CR England is a beggar's crossroad; they lead to trouble in every direction.

 

IT'S A LEASE NOT A LEASE/PURCHASE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!

The 14 cents per mile is a charge to the driver. It's not compensation. It's a payment you make to CRE on top of the weekly lease payment. It includes unpaid miles you run (remember, they pay on HHG but charge on the hub), and you pay for all costs of running those unpaid miles).

What happens to that .01 per mile if you don't re-lease or "upgrade?" And what the hell is a "lease upgrade," anyway? You need to ask CRE. If you do, please post their answer here.

And that $41,392 annual solo driver pay? That's before income taxes and health insurance. If you want to work 52 weeks a year (2,900 miles a week X 52 weeks = 150,800 miles) for a lot less than $30,000 a year after taxes and other expenses, jump right in.

"What and where is the other 13 cents going or used for"? It goes to CRE. I don't know what they use it for, but it won't be for you. As to what they mean by "Variable Mileage Payment," you'll have to ask them. I suggest you record the answer and let us know.

Again, it's a lease. A lease. A lease. A lease.

There. I stayed away from "downing" those bottom feeders.

 

As for finding a former CR England driver to respond, good luck with that one.

Former CR England Fleece Operators are either too embarrassed to post here, or else they are too broke to be able to afford internet service.

Too bad "Spencerain" isn't around anymore!! :P

 

I just realized that my numbers might seem to come out of thin air. Go to

http://www.crengland.com/truckingjob...ractor_leasing

Click on "potential income" and you'll see what Mr C and I are talking about.

 

In looking at the numbers, you would make as much working for a carrier as a company driver as you would leasing one of their trucks. In fact, you could probably make more and not have all the headaches that go along with renting something you will never own.

We have discussed these programs a lot on this forum. I have looked at these programs for years. I have yet to see one that works in the best interest of the driver. Most drivers want to become an owner operator. If that is what you want to do, then save your money for a good down payment and running money. If your credit needs work, then get your credit problems straightened out while you save money and get more driving experience. The best way to buy a truck is to pay cash. Most will not want to wait that long. Your alternative is to buy a truck using a lender. Renting or leasing a truck from ANY carrier is not a good idea. You will pay much less for the truck by getting it on your own. You will also be able to leave your carrier at any time without leaving your truck. You can buy a good truck for less than $20-25M. Right now you could probably find a good truck for less than $15,000. I am not talking about a junky truck, but something that will make you money without breaking the bank. You don't have to get a new truck to do well. The key is keeping your costs down. We are in a troubled economy. During difficult economic times it is much better to have low or no debt.

 

How in the hell can these people sleep at night? Has there ever been anyone on here that ever did a l/p and suceeded? What about Samuel909 or whatever his name was that was on with Swift. Didn't he l/p his truck and I haven't seen a post from him in quite awhile.

 

I know what you mean, Jumbo. By the way, Mr C. With all the extra costs of doing these programs it isn't uncommon to pay $800/week or more to the carrier to rent their truck. The payment is only part of the cost. The money you put into a maintenance account may or may not be returned to you. Some people lose their entire maintenance account if they don't complete their lease. You need to read the fine print very carefully. Don't rely on the figures the company give you. If it were me and I was thinking about getting into one of these programs, I would want to talk to people who have completed their program. I would not want to rent a truck that I would never own. You can rent a truck from Penske for about the same money as you will pay CR England or most any of the others who do these programs. I rented a Penske truck for one of my drivers when the truck broke down. It wound up costing me about $800 for the week. You can buy a truck and have a monthly payment less than $800/month. Most lenders want you to have a year or two driving experience and decent credit. You will need a credit score of at least 650 for some lenders. I believe OOIDA has sources who will finance a truck with a minimum score of 625. It is in your best interest to get a year or two of solid experience before going out and buying a truck. Things will be much easier when you know more about what you are doing.

 

I met a really happy CR England L/O last month.

He had completed his lease was turning in his truck on August 1st and couldnt wait to get out of the parking lot after he did!

 

G-Man;

I agree with your points about saving some dinero and paying cash for a truck, or being able to put down a sixeable doen payment on a good used one, and keeping the monthly payments low.

There is one other alternative to consider, and that is to start off the way "Bandit's Cousin" did; rent the tractor from Ryder/Penske. Does it cost more?? Yes!!....Or, in the end, it may not!!.... but it enables a driver who has aspirations of becoming an O/O a number of advantages.

1.) O.P.M.: Other People's Money
A driver who has aspirations of becoming an O/O can operate the unit as an O/O would, become more familiar with some of the challenges that an O/O faces, and gain a clearer perspective on whether driving as an O/O is right for him/her. what's more, this learning curve can be traversed without an outlay of capital or monthly payment obligations.

2.) O.P.H.: Other People's Headaches
Whereas an O/O driving a good used truck must set aside a maintenance reserve, and deal with the headaches of repairs, and the cost of downtime, by renting a truck, he/she will not be burdened with unexpected repairs. Truck needs work?? Turn it in, and check out another one. No headaches over repair costs, or revenue lost while a truck sits in a shop, and minimal downtime.

While renting is obviously more costly in terms of cash outlay, a driver can better assess whether the dream of being an O/O is one that he/she really wants to persue, or if the realities involved with ownership are more than he/she ants to contend with on a long term basis.

Can this be done successfully??

Well, "Bandit's Cousin" did it, and now, he's got a truck of his own that many drivers can only wish for.

What if the responsibilities of working as an O/O are too much for a driver to contend with??

Well, he/she has no monthly payment to worry about, no "upside down" note or balance to contend with, and no having to sell off a depreciating asset!!

As sales are concerned, truck sales (both new and used) are hurting right now.... BIG TIME!! So, as you suggest, there are some real bargains out there for those who are creditworthy, and prepaired to make a good downpayment.

The mortgage crisis is hitting hard, and we are by no means out of the woods yet; this is affecting alll of the credit markets, as there simply is not as much money available to lend as there has been in years past, so those who are trying to obtain financing in the subprime markets are going to be in a world of hurt, or else paying ussery rates for what financing they can obtain.