Question About CPM

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.

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

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.

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?

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.

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.

Hmm, so you wouldn't recommend lease?

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.

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.

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.

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.)

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.