Question About CPM

Topic 12536 | Page 1

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Cory D.'s Comment
member avatar

Okay in class the teacher said you can make 90 cpm when you do a lease contract, but I did the math. Say if I ran 500 miles, 90 x 500 = 45,000. Would I seriously make 45k before taxes? This really doesn't sound right.

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

Craig T.'s Comment
member avatar

Under those conditions that is correct. Except it's not what you thought. At 90cpm you would make 45k in cents. Which equates to $450.00

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
Cory D.'s Comment
member avatar

Under those conditions that is correct. Except it's not what you thought. At 90cpm you would make 45k in cents. Which equates to $450.00

Ah, now it makes sense. I also jumped the gun. I was suppose to add 0.90 instead of 90.

Thanks.

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
Cory D.'s Comment
member avatar

Also another thing, if your money management skill is good and you get your truck paid off I reckon you would really be in a good situation making 90 CPM and have the right to turn down loads?

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

Errol V.'s Comment
member avatar

Also another thing, if your money management skill is good and you get your truck paid off I reckon you would really be in a good situation making 90 CPM and have the right to turn down loads?

Probably by the time you pay off your truck is over 500k miles and that it will start spending more time in the shop and less time on the road.

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

Cory D.'s Comment
member avatar

double-quotes-start.png

Also another thing, if your money management skill is good and you get your truck paid off I reckon you would really be in a good situation making 90 CPM and have the right to turn down loads?

double-quotes-end.png

Probably by the time you pay off your truck is over 500k miles and that it will start spending more time in the shop and less time on the road.

Hmm, so you wouldn't recommend lease?

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

Errol V.'s Comment
member avatar

Cory has a simple question:

Hmm, so you wouldn't recommend lease?

Most TT'ers will say do not lease or buy a truck. Lots of reasons. I feel the main one is that you get the ownership headaches but you still are doing the job of a company driver.

The Big Debate happens about once a month. If you have no experience operating a business, starting a truck career is not the time to learn how to also make money as a truck driving business. One step at a time.

If you've run a business before, you'll know how much a PITA if is and you'll decide to be a company driver and let the main office worry about maintaining your truck.

DAC:

Drive-A-Check Report

A truck drivers DAC report will contain detailed information about their job history of the last 10 years as a CDL driver (as required by the DOT).

It may also contain your criminal history, drug test results, DOT infractions and accident history. The program is strictly voluntary from a company standpoint, but most of the medium-to-large carriers will participate.

Most trucking companies use DAC reports as part of their hiring and background check process. It is extremely important that drivers verify that the information contained in it is correct, and have it fixed if it's not.

Cory D.'s Comment
member avatar

Cory has a simple question:

double-quotes-start.png

Hmm, so you wouldn't recommend lease?

double-quotes-end.png

Most TT'ers will say do not lease or buy a truck. Lots of reasons. I feel the main one is that you get the ownership headaches but you still are doing the job of a company driver.

The Big Debate happens about once a month. If you have no experience operating a business, starting a truck career is not the time to learn how to also make money as a truck driving business. One step at a time.

If you've run a business before, you'll know how much a PITA if is and you'll decide to be a company driver and let the main office worry about maintaining your truck.

You've given me a lot to think about, the guys that lease the truck suppose to come by tomorrow and talk to us but I might just stick with company.

Thanks.

DAC:

Drive-A-Check Report

A truck drivers DAC report will contain detailed information about their job history of the last 10 years as a CDL driver (as required by the DOT).

It may also contain your criminal history, drug test results, DOT infractions and accident history. The program is strictly voluntary from a company standpoint, but most of the medium-to-large carriers will participate.

Most trucking companies use DAC reports as part of their hiring and background check process. It is extremely important that drivers verify that the information contained in it is correct, and have it fixed if it's not.

Errol V.'s Comment
member avatar

For your bed-time read, put "lease" in the search box above. You'll get several articles.

There are people who are successful with a leased or owned truck. It's a lot of work. Sometimes owners get a priority on loads, but as a company driver you should be turning miles yourself anyway.

Think of these situations: * flat tire, * clutch problem, * you crunched a fender, * no load/driving for four days.

Lease ops have to pay for those, and still make a lease payment monthly.

Company drivers take the beast to the shop. (Ok, crunched fender means you'll have to talk to Safety, four days no driving means you don't get paid about $760, but no need to worry about a truck payment.)

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
PJ's Comment
member avatar

Corey I leased for awhile. I have run a business before and know the devil in the details of that side. I needed a tax break and did it. Most trucks companies are leasing will have between 600-700k on them when they get paid off. I worked percentage instead of milesge. I made decent money and averaged approx. 1.40 per hub mile. However out of that comes your fuel, then your payment. It not only the truck note. You have your insurance. You have to carry bobtail ins, cargo ins, and your policy for when your hooked to a trailer. Some states like mine require you to carry workers comp ins. Then you have heavy use tax, ifta road taxes, base plates, prepass and ez pass if you have them, which I highly recommend. Now you need to put money in a maintance account. It all adds up real quick. Also those payments don't stop because you took time off. Some companies make a big deal of covering base plates and maybe a few other things. Those are the cheapest areas overall. But it sounds good. Also is the company pulling their own freight, or broker freight. It makes a big difference. Does the company charge you if you break down under a load to repower the load?? These are just a few high points off the top of my head. I'm not saying it's a bad thing all together. Just not exactly how some companies portray it. It can work for some people under the right circumstances.

Bobtail:

"Bobtailing" means you are driving a tractor without a trailer attached.

HOS:

Hours Of Service

HOS refers to the logbook hours of service regulations.
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