sammons trucking company, i read about has a program where you dont have a fixed truck payment(so if you take time off you wont fall behind) the more you make the sooner your truck will be paid off, if i eve had to go that route id look for something like that :lol:

 

I would be wary of any company who didn't have a fixed payment amount and time frame. There has to be some really small fine print which needs to be checked. :shock:

 

Hey GMAN, I asked earlier in another thread but I don't know if you saw it as you are pretty good at answering questions. I called Crst and I need another month where I am. I asked them If i could use a penske truck and the recruiter didn't know the answer. I could buy a truck for cash without a problem and I have enough for breakdowns, but I figure just starting that that might be the smarter thing to do for the first few months anyway. Besides I never did flatbed and I want to make sure I'll like it. If not, and I don't see why I won't, I don't want to be stuck with a truck and have to lease on to these big companies for 90 cents a mile. Any opinion on whether this is feasible?

I think this is a good question for this thread anyway, cause I never hear this option mentioned. That is renting a truck instead of these lease option ones. I do believe someone on this board, I think it was bandits cousin was renting a truck, but like I said other than that I don't hear it mentioned.

Thanks

By the way Cam, I'm glad things worked out for you. You were smart and did what was good for YOU. Many won't need to do that, but if that's how you work, well like I said, I'm glad it worked out for you. I do do as GMAN said, everytime I have a repair, I'm either standing there while they fix it and asking questions or after I ask a bunch of questions.

 

None of this really matters to me, I've got a truck. And Jumbo, don't worry, all this talk isn't really about the OP anyway. What this is about is what we're saying to guys everytime they come on this board asking about L/P. I'm no crusader, I'm not trying to change everyone's mind. Right now, there is no information to be gained on this forum about L/P except 'don't'. I can live with that :wink:

 

I don't know what their policy is concerning taking a rental truck. You may need to get approval for that from operations. I haven't checked the cost of renting a Penske or Ryder truck, but I would think it would be rather expensive. I believe they have a base rate plus mileage. CRST Malone will train you on securement. If you are going into flat bedding, you will also need to either rent or buy a trailer. You can rent one from CRST for about $165/week. You will also need to purchase tarps, binders, etc., You can buy them through CRST Malone for about $2,500 (new). They sometimes have used you can buy for less money. They will do a weekly deduction along with a deduction for your base plates and permits, tarps, etc., If you rent a Penske truck you probably won't need to worry about an additional charge for base plates and permits. All of the deductions add up to a lot of money. CRST Malone pays percentage. I doubt whether you will be offered anything for as little as $0.90/mile.

I think that if you plan on becoming an owner operator you should just jump in and give it your best shot. Whether you pull flats or vans you will need a truck. If you get a good buy in a truck, you can always sell it and get your money back. I would imagine you will pay at least $500/week to rent a Penske truck.

 

Thanks GMAN,. As for the 90 cents I meant if I didn't like CRST for some reason and went with one of the dry van companies. Seems like that's what most of them pay.

If I do go with them, I will be going over all these deductions with a fine tooth comb. I'm a tight wad and if I can get things done cheaper I will.

You're right, I should just jump right in and buy a truck. I just like the money in the bank earning interest, but I have to pull it out at some point. Nothing ventured nothing gained right?

Thanks as always GMAN. When I do get a truck and start going I do plan on putting all my figures out here in the open. I think the feedback here is invaluable. By the way I still say you should set up a consulting business helping new O/O. I saw in one of these trucker magazines lately some guy is doing that with how to choose the right freight lanes and to set rates etc. You could be doing that as well.

Thanks again

 

I appreciate it, Merrick. CRST Malone has vans running out of Birmingham that pay percentage (or did at one time). I believe CRST in Iowa pays percentage, but I am not as familiar with their operation. There are other carriers who also pay percentage to owner operators. Most require a minimum of 1 year driving experience. Landstar is one of the larger carriers who pay percentage.

I understand your wanting to conserve capital, but it costs a lot more to rent a truck than to buy. I don't think you can make up the interest you will earn in the bank with what it costs to rent a truck. Even if it only costs you $500/week to rent a truck and you keep it for 3 months. That is $6,000 you will spend on a truck that you don't own. You could spend more than $500/week. That $6,000 is about 1/3 of what you could spend to buy a good used truck. I don't think you can offset the cost of renting with the earned interest on the money. I found CRST Malone to be very up front with their charges. Landstar tends to nickel and dime you to death on some of their charges. You could do well with either company. There are also others who pull vans and pay percentage.

I think it could be very helpful to those just starting out, for you to post your figures. I will keep the consulting in mind. Thanks for the vote of confidence.

 

Thanks again GMAN. By the way about the 90 cents I got that from Melton's website. They are supposed to be a good company and this is what I found:

Melton offers a competitive compensation plan for owner operators. Below you will find the highlights of our contract:


90 cpm loaded and empty
Fuel adjustments that change with the national average fuel price
$40 tarp pay , $40 Stop Pay
PAID toll and scale tickets
PAID fuel tax processing fee
FREE base plates and permits
FREE trailer usage
FREE trip paks
Headache rack available
Group Rates on required insurances available
$1000 sign on bonus to those with their own tractor

This doesn't seem right to me, of course I only go by what I read here. That's why I am nervous buying a truck. I don't want to be hauling for fuel. But at least I am fortunate that I will have the needed financial cushion you always say is needed. Again thanks

 

You are welcome, Merrick. You don't have to SETTLE for $0.90/mile. These carriers try to make it appear that they are giving you much more than you are really getting. If you only make 75% of the line haul and it is say, $1.50, then you are making $1.125/mile. You should get all of the fuel surcharge. Some carriers pay a percentage of the line-haul, others pay a flat mileage rate in addition to the line haul rate. If the percentage is 17% then you would need to add that to the gross rate of $1.50. At that rate the fsc comes to $0.255. So you are actually getting $1.125+0.255 or $1.38/mile to the truck. I realize Melton says that they pay a fsc, but don't say how it is calculated, from your post. If it is the same percentage rate, then you will make $0.90+ 17% or $1.053/mile. That is a difference of $0.327/mile. If you keep your deadhead to 10% you will still come out with more money. Base plates should run about $0.015-0.022/mile based upon 100M miles. The line haul rate of $1.50 is an arbitrary number. You could make more when you run on percentage. One thing I learned a long time ago. Nothing is FREE. If a company is offering something for FREE, it will cost you something. The main thing in this situation is it will cost you revenue. Some people are more comfortable making money by the mile. I prefer making money on percentage. That way I can have more control over how much money I earn. On percentage, I can turn down the cheap loads and only haul those which will meet my minimum haul rate. When you work by the mile, it really doesn't matter what you haul, where you go, or the rate, since you are paid the same, regardless.

 

also keep in mind that with the big carriers you are competing with company trucks.....not a good idea in my opinion.

tootie