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ADVICE for Lease Purchase Drivers! I鈥檝e got the NUMBERS to Share. Know this before you Sign! - YouTube
Channel: MakeCents
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what's going on guys welcome to the video聽
today we're going to talk about lease聽聽
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purchase programs and i urge you to finish聽
this video watch this video to the entirety聽聽
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before you jump into the lease purchase po program聽
um there's there's a better way guys i'm telling聽聽
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you there's a better way uh lease purchase is a聽
scam a scam and before you guys get offended and聽聽
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jump down in the comments please just watch the聽
entirety of the video there is some pluses and聽聽
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along with the negatives of leaseops versus聽
being a real quote on quote owner operator聽聽
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i don't know it's such a technical um loose聽
term uh by the definition of owner operator聽聽
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i'm not even really an owner operator even聽
though i've got my own truck my own trailer聽聽
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my own mc my own authority but since i do actually聽
work with brokers based on that if you get really聽聽
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technical about it i'm not even considering an聽
owner operator so because being an owner operator聽聽
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means you are the owner of the business and you聽
do the the work as well and well i don't i don't聽聽
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have my own customers so technically聽
like i said it's a loose uh subject it's聽聽
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very broad so we're just going to talk about聽
the lease purchases such as like swift jb snyder聽聽
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all the mega carriers and we're going to talk聽
about that now guys i'm telling you it is a scam
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and it it is a scam and i'm gonna crunch numbers聽
uh and i'm gonna show you the difference i mean聽聽
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it's it's the difference of night and day聽
um the thing about i do like about a um聽聽
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at least purchase is a lot of times it's hard to聽
get into the industry and buy a truck through a聽聽
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bank a lender and such because you got to have聽
a crazy credit score you got to have a crazy聽聽
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background in trucking uh it's it's actually聽
harder to buy a truck than it is a house so聽聽
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if you find yourself and you can't don't have the聽
credit and don't have the means to buy a house聽聽
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buying a truck is even going to be harder聽
it's just such a high risk of fail rate聽聽
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banks don't want to lend on it so the alternative聽
to that is in the companies they basically use a聽聽
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predatory approach to give you a lease purchase聽
uh they fit the bill um and on the truck and聽聽
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let you drive it and make you feel all warm聽
and fuzzy and say you're an owner operator聽聽
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uh when you're technically not because you're聽
you don't really have any skin in the game聽聽
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it's just uh if something goes awry you can jump聽
out of that truck and jump into the next lease so聽聽
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it's not really quote unquote a real owner聽
operator um but it is ability making it聽聽
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available to put you in a truck and feel warm and聽
fuzzy um the thing about it is uh getting into a聽聽
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lease it benefits that carrier that company that聽
puts you in their truck first off they're getting聽聽
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that truck for cost or low low price because聽
they're buying in volume say they give 140 for it聽聽
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and they're selling it to you for 240 um 250.聽
they're making all that profit so now they're聽聽
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not only making money and you hauling their cheap聽
freight you're also they're also making money by聽聽
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marking up the price of that truck um that's with聽
the companies that have their own equipment i聽聽
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don't know about the ones that go through penske聽
rider and such i'm just talking about the ones聽聽
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that uh basically if you jump out of that truck聽
they're going to put another driver in at within聽聽
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their uh company so they're making money on聽
both ends of it trucking and truck sales now聽聽
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also it costs them less money to make you a 1099聽
a independent contractor they're going to make you聽聽
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feel all warm and fuzzy and say you're an ic but聽
here's what here's the deal it's cheaper for them聽聽
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to do that as a business it's all it's it's easier聽
cheaper for me to sub work out than make you a w聽聽
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uh a w-2 employee because i don't have to pay no聽
workers comp none of that stuff on you because聽聽
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you're an ic uh but the biggest reason is i say聽
it's a scam is if you go out there and you have聽聽
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an accident and you cause a major major wreck聽
a major fatality wreck uh or or just just think聽聽
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of the worst if news channel nine or six or two or聽
whatever wherever you live come to the company and聽聽
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says hey what do you got to say about your driver聽
that blah blah blah uh the company's gonna say聽聽
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well that's not our driver that's an independent聽
contractor so what to me now i'm a truck driver so聽聽
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let me know in the comments if i'm wrong here but聽
to me what makes sense is it takes away liability聽聽
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uh to help their company save face in the event聽
of a by accident so strike number one they're聽聽
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making money on the truck with you strike number聽
two it's cheaper to make you a 1099 versus an ic聽聽
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number three takes away all the liability聽
liability so to me that's what makes sense聽聽
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uh but let's get real down get real down nitty聽
gritty into the numbers wait i'm getting ahead聽聽
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of myself uh i will give you a small caveat聽
right here if you find yourself and you can't聽聽
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get a truck uh one thing i do like about a聽
lease purchase is it it gives you a little聽聽
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more rain to run it gives you a little more聽
freedom uh if you want to dedicate six months聽聽
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in the lease purchase i'm gonna so i'm going to聽
suggest this really highly get at lease purchase聽聽
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and save your money don't get out here and go be聽
a little bit well above your means uh get in that聽聽
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truck stay poor stay broke and stack your money聽
and stack it five ten fifteen thousand dollars聽聽
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and as one of my best friends said a long聽
time ago was talking on the phone he said聽聽
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if a guy can't go to a company as a lease聽
guy or a company guy and save five thousand聽聽
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dollars he damn sure don't need to buy a truck but聽
because you getting into this game uh the money聽聽
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you you need access to money sometimes uh most聽
the time it's uh unexpected uh two weeks ago聽聽
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i had my truck in the shop that was over a nine聽
thousand dollar bill so if i didn't have access聽聽
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to that those funds i would be out of business so聽
with that being said if you can get into a lease聽聽
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purchase to give you a little more freedom on how聽
you want to run dedicate six months and go hard聽聽
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save five ten thousand dollars and there's聽
companies out here i'm a fan of lone mountain聽聽
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lone mountain has a lease lease purchase program聽
but the thing about it is when you buy that truck聽聽
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from them you know what you're paying for it聽
there's no balloon at the end of it they've聽聽
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got low down payments anywhere from three to four聽
to five to six thousand dollars on a late model聽聽
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truck and payments are usually reasonable and i've聽
seen them as low as eight hundred dollars a month聽聽
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uh around fourteen fifteen hundred dollars a month聽
on a late model used four or five three four five聽聽
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year old tractor uh that would be my suggestion聽
also if you know of companies like long mountain聽聽
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i know schneider uh lease has got something聽
like that and there's a couple other companies聽聽
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i can't remember them off top of my head i've got聽
friends that has those kind of trucks and they're聽聽
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they're available to do whatever they want聽
to want to with that truck they're not聽聽
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held down by the company uh a trucking company聽
so to speak they can take that truck to landstar聽聽
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and mercer you know one of these owner聽
op companies where you're going to fare聽聽
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well and make a lot more money so in the numbers聽
what what i've comprised is examples and numbers聽聽
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versus say a landstar owner op versus say a聽
swift roadrunner i'm going to use roadrunners聽聽
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numbers because i know they're you they're units聽
i i worked there for almost four years so i know聽聽
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their units of how they charge so i'm going to聽
compare the two and then we'll get down to the聽聽
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end of the month net and we're going to compare聽
apples to apples and yeah i had to take notes guys聽聽
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i had to crutch all these numbers matter of聽
fact the numbers are so crazy i had to crunch聽聽
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my numbers four different times because i thought聽
that there's this can't be right it can't be right聽聽
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so what i've done is i've based two different聽
operations apples to apples 2500 miles both聽聽
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getting six miles of the gallon both getting given聽
five dollars a mile for fuel um and which that's聽聽
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this apple's apples the difference is how much聽
you pay for that truck and trailer and insurance聽聽
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versus also the difference in how much you聽
make per mile uh we're going to go with聽聽
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road runners plan right here when i was there this聽
was some years ago so it might have changed some聽聽
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of these numbers might be might have changed聽
i don't know correct numbers but if as long聽聽
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as you're diving into new companies the numbers聽
aren't going to be too far off uh some of them聽聽
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might not be a per mile basis but some of them聽
might be a 50 percent of the load 60 70 and what聽聽
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have you just know the numbers and what i'm about聽
to show you and you can adjust it accordingly to聽聽
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what you're looking at in at least purchase so聽
road runner i've got them down at a dollar ten聽聽
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a mile when i was there's a dollar five a mile聽
plus fuel surcharge so i'm gonna bump it up five聽聽
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cents today i looked up to fuel surcharge the fuel聽
surcharge today is 85 cents a mile given or gallon聽聽
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whatever given that you get 100 fuel surcharge聽
so based on this math at a dollar ten plus 85聽聽
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cent fuel surcharge comes to a dollar ninety聽
five now if this truck runs 2500 miles a week聽聽
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that's going to gross 4 875 on the course of聽
four weeks we're just gonna go four weeks here聽聽
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not a month just four weeks on the course of聽
four weeks that comes to nineteen thousand聽聽
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five hundred dollars now here's where it gets聽
interesting let's take away the fuel 2500 miles聽聽
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right divided by our 2500 miles divided by six聽
miles to the gallon times by five dollars per聽聽
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gallon um it comes to eight thousand three聽
hundred and thirty three dollars a month聽聽
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and that's going to drop it down to six thousand聽
well let's start back over here because i lost聽聽
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my train of thought and my place on this page uh聽
let's say you got at the end of the month you got聽聽
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gross nineteen thousand five hundred dollars the聽
fuel eight thousand three hundred and thirty three聽聽
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leaving you six thousand four hundred four now聽
based on what road runner had for a lease purchase聽聽
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uh their trucks was like 800 a week i think聽
they're more than that now so but we're just聽聽
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for the sake of this video an example we're聽
gonna go with 800. uh that comes at 3 200聽聽
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a month we're going to use again when i was there聽
the trailer trailer rental fee was 250 a week it聽聽
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might be different now i'm just going to say it聽
was what it was when i was there and insurance uh聽聽
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when i was there as little 400 so i'm just going聽
to say 500 but i'm doing apples to apples on both聽聽
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companies even if the numbers are wrong that comes聽
to 4 700 so if you take that 4700 monthly expense聽聽
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out of that 6467 it's gonna leave you a weekly net聽
of sixteen hundred and sixteen dollars and seventy聽聽
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five cents so if you tally that to 52 weeks聽
if you want to be able to run that every week聽聽
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which you can't uh you're a little over seventy聽
thousand dollars a year net which is decent but聽聽
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you're running your [聽__聽] now here's something聽
i don't really like about the week-to-week deal聽聽
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um if you're running out here and you're running聽
week-to-week to week to week as long as you're聽聽
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working the payments are coming out on on the聽
weekly settlement and you're always in the black聽聽
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but but if you want to go home and say take a week聽
off when you go home if that truck is 800 a week聽聽
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and the trailer's 250 a week and they adjust all聽
your other expenses break them down into a weekly聽聽
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uh you go home even though you're sitting at聽
home you still accrued a thousand twelve thirteen聽聽
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hundred dollars in the red so when you come back聽
the following week you start out behind the eight聽聽
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ball so not only do you have to run all week聽
and make that coming up settlement truck payment聽聽
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you're still trying to catch up last week's too so聽
this paycheck uh you're it's going to be double i聽聽
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mean you go home for a week and then spend three聽
weeks trying to get back into the black on that聽聽
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model i mean it's just it just it's terrible聽
guys and i can't stress enough a weekly lease聽聽
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like i said if you're going to get into it for聽
six months hit hard and stack all your money聽聽
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uh and get then go another route that's the only聽
way i'd say go that lease otherwise you never get聽聽
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in quality home time you never get home time with聽
your family but i'm getting ahead of myself here聽聽
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and let's get back to that leaves you a weekly聽
net of sixteen hundred and sixteen dollars per聽聽
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week now let's jump onto the landstar model the聽
landstar model this is you go somewhere and you've聽聽
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got a truck that's fifteen hundred dollars a month聽
you've got a trailer that's four hundred dollars聽聽
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a month you've got insurance of five hundred聽
dollars a month your monthly on truck trailer聽聽
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and insurance is twenty four hundred dollars聽
now if you run the same model 2 500 miles a week聽聽
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and we're gonna go with three dollars a mile now聽
because you're up in the big boys you're getting聽聽
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three dollars a mile on all that 2500 miles a week聽
times three that's 7 500 all right 7 500 weekly聽聽
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gross if you tally that by four it comes to thirty聽
thousand dollars so we're already leaps and bounds聽聽
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difference thirty thousand versus nineteen five聽
it's already over ten thousand dollar difference聽聽
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but it's even worse than that now twenty five聽
hundred miles divided by six miles to the gallon聽聽
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at five dollars a gallon you're gonna accrue the聽
same expense two thousand eighty three dollars a聽聽
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week or eight thousand three hundred and thirty聽
three a month let's say you got thirty you do聽聽
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that and you got thirty thousand dollars聽
a month gross after fuel you've got eight聽聽
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thousand three hundred and thirty three and聽
after your cheap truck trailer and insurance聽聽
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payment of twenty four hundred dollars that聽
leaves you a monthly net of nineteen thousand聽聽
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two hundred sixty seven it's divided by four聽
leaves you a weekly net of forty eight hundred聽聽
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and sixteen dollars now how do you go from sixteen聽
hundred dollars to forty eight hundred dollars if聽聽
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the difference there is the sixteen hundred dollar聽
a week scam on this model i'm giving you is a scam聽聽
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it's just a scam guys there's a better way聽
of doing it like i said i'm not against lease聽聽
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purchases the thing i'm i'm i'm against them is聽
this it just don't make sense you work the same聽聽
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amount of hours you pull the same amount of load聽
you pull the same amount of hours of work day聽聽
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the fuel everything you're pulling the same thing聽
but the difference is is the money in your pocket聽聽
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which at the end of the day the only reason we're聽
doing this is for money there is nobody out here聽聽
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trucking just to be trucking unless you're old聽
retired and you're just choking for fun i get聽聽
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that but i'm just saying majority of us out here聽
we truck to make money otherwise we'd be at home聽聽
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enjoying time with our family and doing fun stuff聽
versus kicking rocks down 970. you know i'm just聽聽
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saying it just makes sense guys i hope this made聽
sense if not i'm going to leave this up right here
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and i hope you screenshot that if you didn't聽
screenshot that back it back up do a screenshot聽聽
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crunch the numbers in your own head get an聽
idea of what i was talking about because聽聽
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i don't even make sense of what i just said聽
but putting it down on paper guys there's a聽聽
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big difference owner out versus lease op there's聽
a huge difference and the lease purchase way it's聽聽
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just there's not there's not a lot of money in聽
it guys it's a lot of hassle a lot of headache a聽聽
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lot of stress uh most guys i know this went down聽
the lease purchase program they ended up losing聽聽
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everything they had then went back and they're聽
just working back home they gave up on their dream聽聽
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because they see it as a scam as a you can't get聽
a you can't get above ground uh also a lot of guys聽聽
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in the comments you know today's trucking聽
is dead there's no money in it anymore uh聽聽
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possibly those guys are in police purchase聽
programs and they don't see ass they don't
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they don't have access to keep more at the end of聽
the month that's that's what it's all about guys聽聽
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there's a smarter way of doing it and i suggest聽
the owner operate way if you get into the lease聽聽
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purchase like i said use it hit it hard get out聽
and if you're interested in what i'm talking about聽聽
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on how to get out of that and go into another get聽
going to the owner up game uh in a different means聽聽
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um stick around subscribe give me a thumbs up聽
because i'm going to put some videos together聽聽
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in the near future on what i would do if i was聽
to have to buy a truck again and i've got shitty聽聽
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credit so anyways guys remember uh it ain't about聽
how far you go in life that matters it matters聽聽
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how far you go in life adding quality and values聽
to others until the next video guys see you bye
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