I find it interesting that you're leasing trucks. From those that have leased, I've generally learned that they aren't maintained properly at all. More of a "we'll fix it when it breaks" kind of deal. I have over 2 million km on my 99 volvo and it is extremely reliable because I believe in fixing things before they break. Alternator every 2 years, air dryer every 2 years, batteries every 2 years, belts every 3 years, etc.. A little bit of maintenance makes all the difference.

On top of that with a lease you never own the truck, never ending monthly payments. I guess it does tend to keep cash flow more consistent.

But to each his own, it doesn't matter because our business models are different, I do not have employees (most here do not either). I wish you success in the future. Keep us posted.

 

I think it pays to own. Everyone who i talked to that leases says in the long run its more money. Also all the bigger fleets around me. Own most of their trucks. But to each their own. What ever works for ya.

I was thinking about buying a 7,000gallon vacuum tanker. Then leaseing a tractor to pull it. So i can bid on sludge hauling. But im still thinking about that.

 

I've always deferred to you with respect to mechanics allan as you know so much more than me. All I can say is they (Ryder) own the trucks so if they want to resell it than they should be maintaining it so they have better residual value. At one point I had 7 trucks of my own and was leasing 7 and made a comparison and it came out to be the same. However I always say, you can quantify breakdowns at the end of the year but how do you quantify downtime?

I've had clutches go in the middle of the night and still made on time delivery (with flowers to Walmart). It's a peace of mind thing. My payment includes insurance which my old agent told me that he hates to lose a customer but I will never get rates in the state of Florida like that from an agent. It includes the plate, the 2290. It even helps if it's my fault. For instance I had a truck hit a deer that did a lot of damage. They towed out a replacement and we kept rolling. I had to pay for it but again I made on time delivery with flowers to another Walmart.

You'd be surprised how many real big companies do this too. MBM is I think Ryder's largest customer. Ruan has a bunch of them. I was talking to a guy from TransAm I think it was or one of those big ones from Kansas that haul meat and he was telling me until they reached 50 trucks they had Penske. Seems like there are Ryders everywhere too. Actually just to give you another example, last week we broke down at 11PM in the middle of Vermont. We thought the clutch went, but we spoke to the shop and we decided to nurse it there as he was just getting on the interstate. He got there, they gave him another truck and we made on time delivery and they had his truck fixed by 11AM or so. It was some rod or something. This is a huge selling point with customers.

 

Awwww you're making me blush. I'm not a super mechanic or anything, I just really pay attention to details and always try to get my hands on shop manuals.

I understand where you're coming from completely. You'd rather take care of the customer service side of things than the mechanical items. We just have different business models. I don't know if I could handle that many trucks because I'm such a perfectionist, half of them would be off the road at any given time! If I were to build a fleet like that they would be all 2000-2003 trucks full restored and rebuilt before put in service. I'd have no problem putting 30k into each truck. The upfront cost seems absurd but this is the most cost effective way to do it long term.

I always try to avoid breakdowns and downtime. To me spending a little more and looking at things closer has paid off. As soon as you hire one guy to drive a truck, that special care disappears. But I certainly wouldn't hire a driver with at least some mechanical background. At a minimum they should be able to change lights and belts, and recognize certain problems like wheel seal leaks, hubs low on oil, brakes out of adjustment, wiring wearing through, air leaks, etc..

The problem is most of those type of drivers are owner operators already.

 

My oldman told me years ago. The problem with building a fleet is getting good drivers. Cuz all the good drivers sooner or later will buy their own trucks. Just like we all did.

 

i for one was iffy about buying a ex ryder truck because of what i've seen when i was a company driver in fl. my truck i have to say was really taken care of well by ryder! the location where we used to go when i was a company driver (riviera beach) was THE WORST. i can see both the pro's and con's to leasing. i think one of the biggest next to the pro's that merrick has stated is the write offs. that case alone i dont think he'll mind the never ending payments.

merrick i am taking notes and what not, i hope to buy my second truck by june of next year. i tell people all the time, from what i see the rates are down, but money is still to be made.. and a lot of it! continued success !

 

I prefer an older truck too Allan (I drive a '98 myself) but the difference is the driver.

You and I an keep an older truck on the road because we hear every squeak and fix it. Merrick's drivers might not be as concerned with the truck as much as we are. Also, you and I likely have a shop to work in on weekends. Merrick would need a couple of mechanics working round the clock on weekends to fix everything that broke during the two weeks.....assuming the driver mentions it. What's Merrick going to do when the driver neglected to tell him about that growling clutch and now the driver is broke down day 1 into a 14 day trip?

Older trucks are fine, but there are no company drivers qualified to operate them IMO.

 

That new!!!! You're one of those high faluten truckers.
Mines an 84'.:smokin:

 

Hey Rosty remember that new one you were looking at 2 years ago. That would have been 1/2 way paid off my now LMAO.......

 

True, but this old girl is starting to take shape now. It was rough, but I'm getting ahead of it now. I don't think I'd trade this b model CAT for anything new.