This is an email that was sent to me. I hope this helps. BOL

Dale, I just received your information this morning. I have attached our
information for your review.
Are you currently an owner operator or are you interested in our lease
purchase program? If LP where do you live?

Your fleet manager will help you with loads, we have over 100 agents thru
out the country that you can contact for loads, we also have our own
logistics department. If neither can get you a load you can broker other
loads only of CRST has no loads for you.

 

Here is what they sent me.

LP Truck Information – updated 5/15/08

2004 Freightliners – Columbia 2005 Freightliners – Columbia
DIMENSION 228” Wheelbase DIMENSION 228” Wheelbase
ENGINE Series 60 Detroit ENGINE Series 60 Detroit
TRANSMISSION over drive 10 speed FRO-15210C (not super 10) TRANSMISSION over drive 10 speed FRO-15210C (not super 10)
CAB Conventional, Condo 70” CAB Conventional, Condo 70”
REAR AXLE Gear Ratio: 3.58 REAR AXLE Gear Ratio: 3.58
WHEELS Steel Hub Pilot WHEELS Steel Hub Pilot
SLEEPER SIZE 70” SLEEPER SIZE 70”
Engine RPM 1450 at 65 mph Engine RPM 1450 at 65 mph
TIRE SIZE 295/80R 22.5 TIRE SIZE 295/80R 22.5
AVG MILES 600,000 AVG MILES 600,000


Term of Lease: The existing 2004 Freightliners we have are around 100 weeks on the lease. The 2005 Freightliners have 156 weeks on the lease.

Payments are all set at approximately $305.00 per week, Balloon payments are $5000.00. The payments and balloon is the same on all trucks. Balloon payments can be settlement deducted at $250.00 per week until paid (20 wks).

Based on 1900 loaded miles per week, $1.66 per loaded mile gross, fuel surcharge of 56 cents per loaded mile, a fuel price of $4.14 a gallon, 5.5 miles per gallon and 15% deadhead, the following calculation applies:

$3154.00 (gross line haul)
X .75 (75%) (net line haul)
$2365.50 (net line haul)

- $1105.85 (deductions)
$1259.65 (net take home before fuel)

$1645.31 (total fuel cost)
- $1064.00 (fuel surcharge)
$581.31 (total fuel cost after fsc)

$1259.65 - $581.31 = $678.34 (net take home after fuel)


According to Ron Maynard, Director of Operations, the LP program is tough, but if a guy really wants to own a truck he can do it, as long as he knows that if he works hard the average take home is between $600 and $1200 a week. From $600 - $800 at the beginning of the lease and around $1200 as deductions drop off. He can’t sit at home on the weekends and he has to take freight in good areas, with good rates and stay out a couple of weeks at a time.


LP Deductions
Truck Payment $305.00/wk (starting 2nd-3rd week)
Bobtail Insurance $30.00/mo (2nd week of the month)
License & Permits $75.00/wk (3rd week after leave)
Physical Damage Insurance $35.00/wk (1st week after lease)
Securement Equipment $100.00/wk (starting 3rd week until paid off)
Trailer Rent $185.00/wk (1st week free, 2nd week $92.50)
Performance Bond $75.00/wk (after plates are paid until $750)
Security Deposit $50.00/wk (5th week after lease until $4250)
2290 $10.85/wk
Maintenance Expense Approx. $240.00/wk
Total Cost per Week Approx. $1105.85/wk

 

This is if you own your truck.

CONTRACTOR OPTIONS (PAGE 1)


At CRST Malone, we have created a variety of options from which Operators with varying needs can choose.

Trailers The contractor can pull his own trailer or rent a trailer from CRST for $185 a week.


Plates & Permits CRST Malone runs Illinois base plates. The cost of a tag supplied through CRST for a full year is $1800, prorated $150 less each month from April at $1800 to March at $150. Permits or IFTA (state fuel taxes) are $260.95. The cost of tags is added to the cost of permits and set up as one deduction of $75 per week starting the 3rd week you are leased with CRST. Amounts are subject to change from year to year. The costs listed are for 2007. If you decide to turn in our plates and get your own, you’ll have to pay through the month they are turned in and then the deductions stop.

Bond The bond is $750 deducted at $75 per week starting after your plates are paid with CRST Malone. This amount is to cover costs associated with the abandonment of equipment and contractor bad debt.

Securement CRST Malone keeps an inventory of securement equipment for its contractors’
Equipment convenience. Cost of this equipment depends on the contractor’s needs. The cost for a full set of equipment is approximately $2,000. CRST Malone will accept credit cards, cash or cashier’s check for the full amount or 50% payment at the time of orientation. Arrangements can be made for financing up to 50% of the equipment cost with payments to be deducted from your settlements at $100 a week.

No Qualcomm Since CRST Malone does not use Qualcomm; cell phones are required and are the primary means of communication with dispatch

Discounts CRST Malone offers a fuel discount program, parts and maintenance discounts at over 400 International dealerships and a national tire account discount program

Prepass CRST Malone was one of the first carriers in the nation to be afforded the privilege of participating in the prepass program. Cost of this program is $8.93 per month for unlimited bypass with a $100 deposit.

Maintenance Operators can take advantage of an optional payroll deduction that allows them to put Escrow Acct money aside for unforeseen emergencies.

Pegasus A paperwork scanning process available at truck stops. The cost is 25 cents per page. It allows for immediate receipt of documents into CRST Malone’s settlement department.

ComData Fast and convenient pay is provided via ComData. Funds are available by noon on Wednesday and Friday for use on the road or direct deposit transfer.

Terminal Pay Some CRST Malone terminals offer terminal pay as a convenience for their domiciled Operators.

Referral Pay Operators can earn extra pay by referring Owner/Operators and Lease Purchase Operators to CRST. We pay $750 for each Owner/Operator paid at $500 upon first dispatch and $250 after 30 days. We pay $250 for each Lease Purchase Operator referred upon first dispatch.



CONTRACTOR OPTIONS (PAGE 2)


Health Insurance CRST Malone is pleased to provide a new, cutting edge, combination of group and individual insurance plans for our valued drivers. Through affiliation with the Universal Trucking Benefits Association, drivers have access to a variety of insurance options. For more information call toll free 1-877-472-5541.

Retirement Plan The programs available to Owner/Operators are: Individual Retirement Account, Simplified Employee Pension and Simple IRA plans. Premiums can be settlement deducted or paid through automatic bank account withdrawal. Operators can call Principal Financial at 1-800-253-7991 (Steve Odegaard or Larry Witzel) to receive a detailed packet of information including cost.

Driver’s Legal Plan The attorneys of Drivers Legal Plan dedicate their entire practice to CDL defense. These lawyers have extensive experience in every state and practically every court in the continental forty-eight states. Former judges and prosecutors, and CDL holders themselves; they, and their legal staff have handled thousands of cases for drivers just like you. They are familiar with logbook rules, hazmat standards, weight and length restrictions, and moving violations in the various states; and more importantly, the effects on your CDL. To enroll or for more information, call Toll-Free at 1-800-580-8789

ATBS America Truck Business Services (ATBS) is a comprehensive program created specifically to meet the business needs of owner-operators. Owner-operators must handle many time-consuming, complicated business tasks themselves including bookkeeping, tax preparation, and monthly income statements. Their personalized program handles all of those elements and more, plus unlimited business consulting. ATBS is a unique complete program with one goal – to make their customers the most profitable, successful owner-operators in the industry. To enroll or for more information, call Toll-Free at 1-888-640-4829 or go online to www.attrucktax.com

 

LOL, and some more info.

FLATBED

CRST Malone is a fast-growing, people-oriented trucking company that is committed to excellence. In order to meet this commitment, we have a clear understanding that developing partnerships with top-quality Owner/Operators is essential. We have created a comprehensive and growing network that, in a cooperative effort with CRST’s broad customer base, can provide our Operators with the ability to have high earnings with low deadhead. Our operation is made up of one of the nation’s largest fleets of covered wagons, a large number of step decks and regular flatbeds. We pride ourselves on our driver friendly freight.

DISPATCH PROCEDURES – Our dispatch procedure is not new or unique. Stay in touch with your designated contact, central dispatch or terminal. We do not force your dispatch. We do utilize preplanning to insure you can get reloaded with the least amount of layover and empty miles. Preplanning requires communication, and good communication leads to higher earning.

HOME TIME – As stated above, we do not force your dispatch. Therefore, home time is up to the Operator. Keep your fleet coordinator informed as to when you want to go home and how long you want to stay. Most of our Operators develop lanes within our system that allow them to have whatever home time they deserve.

FREQUENTLY ASKED QUESTIONS
What do you pay? We pay 75% of revenue with or without CRST Malone’s trailer.

When do I get paid? We pay twice weekly – Wednesday and Friday by noon through ComData. If your paperwork arrives on Saturday, Monday or Tuesday, you will be paid that Friday. If your paperwork arrives on Wednesday, Thursday or Friday, you will be paid the following Wednesday. CRST Malone uses the Pegasus scanning system, available at truck stops across the nation, at a cost of $0.25 per page. Pegasus provides immediate receipt of scanned documents into CRST Malone’s Settlement department. Other pay options available are: Direct Deposit through ComData, Standard Check and Terminal Pay (in some locations).

What is the age limit on a truck? We do not have an age limit on tractors. All new leases must pass a CRST Malone DOT inspection. Tractors ten years or older must also pass a safety visual inspection conducted at an authorized location.

What do your loads pay, and how much can I expect to earn? Our Owner/Operators’ average gross revenue is $1.82 per loaded mile. You get 75% of the gross revenue plus 100% of the fuel surcharge which is averaging .72 cents per loaded mile as of 8/1/08.

How long is orientation? 2-3 days for Owner Operators and 4 days for Lease Purchase. Lease Purchase orientation is held at our Eldridge, IA location. We have multiple orientation sites for Owner Operators. We pay $500 orientation pay for all Owner Operators after you are dispatched on your first load.

What is your average deadhead? Our average is 10-12%

What types of bonus programs do you have? INSPECTION BONUS: Owner/Operators are paid $50 for going through a state level 1 or 2 DOT inspection with no violations. A bonus of $25 is paid if there are no out-of-service equipment violations noted on the inspection form, but the contractor provides proof of repair to CRST Malone within 10 days, showing the violations have been corrected. Violations cannot be out-of-service or driver violations, and all inspections must be logged correctly. REFERRAL PAY: $750 is paid for referring Owner/Operators to CRST Malone in 2 installments - $500 when they are dispatched on their first load and $250 30 days later if they are still leased with CRST Malone. $250 is paid for referring Lease Purchase operators to CRST Malone and it is paid when they are dispatched on their first load.

What are your hiring requirements? Owner Operators must have a minimum of six months verifiable OTR in the past three years in equipment similar to the type you will operate at CRST Malone. Lease Purchase drivers must have a minimum of one year verifiable OTR in the past three years. No more than two moving violations in the past three years. No DUI or DWI convictions within the past three years. No felony convictions within the past 10 years. DUIs, DWIs and felonies have a lifetime limit of one. No positive drug tests or refusals. Minimum age requirement: 25 years old or 23 years old with 2 years of verifiable OTR experience.

 

INSURANCE & DEDUCTIONS
CRST Malone provides General Liability and Cargo Insurance at no cost to the Owner/Operator; however the Owner/Operator will be responsible for the deductibles of $1,500 on cargo and $1,000 on liability. If cargo and liability are paid on the same accident, the maximum deductible would be $1,500.

Non-Trucking Liability Cost: $30 per month/deducted from settlement
(Required) Covers: Liability insurance when not under dispatch
Deductibles: $1,000 per occurrence
Note: Non-Trucking Liability insurance is required, but does not have to be gotten through CRST Malone.

Physical Damage Cost: 4% of the stated value of the insured equipment for the yearly (Optional) premium.
Deducted weekly (based on 48 weeks) or monthly
Covers: Damage to operator’s tractor/trailer
Deductibles: $1,000 fire or theft - $1,000 collision

Occupational/Accidental Cost: $180 deposit deducted over a 10 week period, $180/mo. Deducted from settlement at $45/wk.
Covers: Medical expenses and provides weekly earnings when an operator is injured or disabled due to an occupational accident or work related injury

Note: On the Job Injury Insurance is required for all drivers for owners and in some states all Owner Operators. Contractors may obtain Occupational Accident coverage through CRST. If the contractor prefers to get On the Job Injury Insurance coverage independently, Worker’s Compensation coverage will generally be required.

Plates & Permits CRST Malone runs Illinois base plates. The cost of a tag supplied through CRST for a full year is $1800, prorated $150 less each month from April at $1800 to March at $150. Permits or IFTA (state fuel taxes) are $260.95. The cost of tags is added to the cost of permits and set up as one deduction of $75 per week starting the 3rd week you are leased with CRST. Amounts are subject to change from year to year. The costs listed are for 2007. If you decide to turn in our plates and get your own, you’ll have to pay through the month they are turned in and then the deductions stop.

Bond The bond is $750 deducted at $75 per week after your plates are paid with CRST Malone. This amount is to cover costs associated with the abandonment of equipment and contractor bad debt.

2290 The Heavy Highway Use Tax or 2290 must be obtained from the IRS before the owner operator can be leased to CRST Malone. The cost to obtain a 2290 is $550/year. It is possible to be advanced orientation pay to pay for an owner operator’s 2290. The owner operator must have passed his drug screen before the orientation pay is released.

Trailer Rental CRST Malone offers trailer rental for $185 a week deducted from settlements. The first trailer rental fee will be ½ the normal cost and will start the 2nd week leased with CRST. Starting on the 3rd week leased with CRST, the trailer rent will be the full $185.

 

Last one. I promise.

LEASE/PURCHASE “MAINTENANCE SERVICES”

1. Maintenance coverage during the First period is a “bumper to bumper” coverage as defined
by the contract.


2. Maintenance coverage during year three will be routine maintenance only. Routine maintenance will include the following items:
a. Items covered, Period Two.
i. Tires, normal wear only. Abuse such as curbing, low tire pressure or road hazards will not be covered. Type of tire used will be at CRST’s discretion.
ii. Brakes and brake components.
iii. Preventive maintenance such as oil changes and necessary items to complete service.
iv. Belts and hoses.
v. Alternators.
vi. Air conditioning systems.
vii. Heater blowers.
viii. The Clutch, clutch housing and clutch assembly.
b. Items not covered, Period Two.
i. Engine and all internal parts, this includes the engine head, valves, valve springs and keepers, rocker arms and shafts, camshaft and bearings and head gasket.
ii. Fuel Injectors.
iii. ECM or any of the associated electronic components.
iv. Turbo and inner cooler
v. Oil cooler, pan and pump.
vi. The transmission and all internal parts.
vii. The axle assemblies and all internal parts.
viii. Timing case cover and timing gears.
ix. Exhaust manifold.
x. Intake manifold.
xi. Performance complaints.
xii. Oil consumption, this includes oil leaks, accessory drive seals, cam follower boxes, cylinder problems.
xiii. Front suspension, king pins, spring hangers.
xiv. Radiator.



___________
Initial

 

So do you have any other questions? :wink: BOL.

 

I would stay away from the lease purchase. I met one lease operator who liked it and said that he had paid off one truck, but did so by training. They have gone up on their trailer rental fees. Rather than leasing a truck from CRST Malone or anyone else, I would save my money for a good down payment or just pay cash for a used truck that you can afford. You will still need to pay some of the fees, such as the base plate and permits, etc., There is no charge for IFTA. You pay fuel taxes, but I rarely pay more than $25-75/quarter. If you watch where you purchase fuel you can keep your fuel taxes to a minimum. I can't see me ever doing a lease purchase with any carrier. The costs are too great.

 

I feel the same Gman. the LP programs will dime you to death and then you would have made more money being a company driver.

 

There are some drivers who will do almost anything for the opportunity to become an owner operator. They get so blinded by their desire that they don't think it through. The sad part is that most of them will never own the truck. They will make the payments but never actually see the pink slip. Most of these people have poor credit and limited funds. When they get out of these lease programs, their credit is often further damaged and they can owe thousands of dollars to their carrier. In addition, they are probably in worse financial condition than before they jumped into the lease. There is not an easy way to become a successful owner operator. You sacrifice to achieve your dream. You work, save your money, rebuild your credit and learn the business while driving for a good carrier. There are no real shortcuts.