December 9, 2018No Comments

Buy vs Lease a Truck?

Buy vs Lease Truck is one of the first decisions future owner-operators must face. Both options offer benefits as well as drawbacks. There are many different situations that apply to different people. Always keep in mind that a truck is a tool for work first, and a vehicle second. Potential business owners should consider the job at hand to make the best choice.

 

Lease a Truck

Leasing a truck makes sense when you are starting your career or you lack good credit. It does not require a significant down payment, and the monthly or weekly amount is generally smaller than that of a loan. The driver will own the truck, as the lease agreement ends. There is a type of lease where downpayment is required. Monthly payments are generally low because the balloon payment at the end of the contract matches the value of the truck at the time. For example a 10 percent down payment on a $130,000 vehicle with $2000 per month for 60 months and a balloon payment of $24,000 at the end. This is a sweet deal for a new truck if you plan to keep and use it longer than five years.

The most common lease is directly through a trucking company. Weekly payments will be deducted from the driver's check. A required down payment of around $5000 will be needed. It shows good money management skills and establishes good faith. It also allows for lower weekly payments.

A lease is a form of rent. Drivers must take care of the truck, and when the contract expires, the truck should be in good condition.

 

Maintenance under lease

Drivers are responsible for the maintenance of the trucks unless the lease is from Ryder or Penske. These two companies charge between $0.12 and $0.20 per mile for regular maintenance. This, however, does not include accidents and or incidentals. If you hit a deer or a rock cracks the windshield, repairs come out of your pocket.  

Buy a Truck

When a future owner operator purchases a truck and finances it, the bank takes the title as collateral for the loan. The driver owns the vehicle, and like in the lease (unless the lease is from Ryder or Penske) all responsibility for the ownership falls on him.

Advantages

Financing a loan is a cheaper option. Also since the driver is the owner, he can build some equity in the truck. If the market is strong, an owner-operator can make extra principal payments towards the loan, thus paying it off early and saving on interest.

Disadvantages

Drivers need a credit score over 630-650. That puts those with less than perfect credit at a disadvantage. The higher your credit score, the better the interest rate on the loan will be.

Many banks require down payments when credit history is an issue. Ten percent is standard, but some will only ask for five. Almost any lender will agree to finance a truck driver with 20 percent cash in pocket. Putting down a substantial down payment secures lower monthly payments that won't put a toll on the driver when the market is slow.

A major factor improving the odds of financing a truck is previous owner-operator experience. Many banks will deny even 20 percent down payments if the future truck owner cannot provide past truck payment history. That is probably the main reason why many drivers start off with a lease. Experienced truck drivers are not necessarily experienced business owners, and banks know that. Previous owner operator experience shows knowledge of how to manage a business and offers banks more security.

 

Let us know if you want to receive our lease information!!!

December 8, 2018No Comments

Winter Driving Tips for Truck Drivers

A calm sea does not make good sailors, and driving in Florida only does not make good truck drivers eater. For the best winter driving advice, you should ask a driver from all the states North of I70. However, if that is not possible, you can read our blog. We will outline the most common issues our company had in the winter and how we have solved them.

Do not freeze up the fuel Filters

With the low winter temperatures, it is very important to put anti-gel in the fuel tanks of the truck. Unlike gasoline which does not gel up unless it is -120 F, the diesel fuel gels up at around 10-15 F. The fuel does not run through the fuel filters which kills the engine. The popular belief that, if you idle the engine, the fuel won't freeze is not true. Yes, the water separator has heaters, but the fuel gels up the primary filters. The solution for the situation is to change them and prime the engine.

 

Do not forget your chains

Different states have different chain laws. Colorado chain law requires every passing truck to have chains between September 1st and May 31st. Not all states require you to have chains in the truck, but they may give you a fine when you are stuck in the snow.

 

Do not leave your fuel tanks empty

When you go home in Minneapolis or stop for 10-hour break in Laramie, WY make sure that your fuel tanks are full.  Because warm diesel circulates between the tanks while the truck is moving, water condenses on the inside of the empty fuel tanks. Winter driving with extra water in the fuel tanks can make fuel filters freeze faster.

 

Do not forget the airlines

New trucks have sophisticated aid dryers. As the name suggests they make the air in the air system dry. That is important because moisture can build a lot of ice inside the lines which will malfunction the air brakes.

 

Do not try to be a hero

All loads can wait. If the weather is dangerous, just pull over. If your dispatcher or customer complain about it, you work for the wrong company. Your paycheck maybe shorter this week, but you will live longer.

 

Do not think of Winter Driving as a joke

Ice on the road makes trucks unstable. Cold weather will weaken the metal and the truck will feel different.

July 6, 2018No Comments

Don’t Haul Without a 401(k)

Don't Haul Without a 401(k)

Not all employers offer the same benefits to their drivers; if you are looking for a comfortable retirement, then you want to ensure that your prospective company offers a 401(k). What exactly is a 401k and why does it hold the key to your future?

401k might not seem like a need right now, but later on in life it will be.

What is a 401(k) Retirement Plan?

Simply put a 401(k) is a retirement plan that allows you to store money for your later years. A percentage is taken out of your paychecks and helps replace your typical employment income when needed after retirement.

Depending on your employer, they may also opt to match a percentage of your monetary contributions. As 401(k) offerings differ between companies, it is essential to understand precisely what the company you are prospecting is offering.

Employers are not required to match 401(k) contributions, but it has become a common practice within most larger companies. An example of a basic policy would be one that mirrors 50% of your contributions.

Saving a certain amount from your paycheck and your employer also making a contribution will result in a total contribution. It is important to take advantage of this benefit when offered its like free money for retirement!

 

Why Should I Consider a 401(k)?

A 401(k) is a vital company offering and should be carefully considered when seeking a company for employment. It might be better to opt for a lower paying position with a 401(k) than a higher paying position without.

Once you pick the company you wish to work for that offers a 401(k), do more research.

For starters, it is critical to discover when you can begin contributing to a company’s 401(k) offering. You may have to work a certain amount of time before being eligible for a 401k plan.

Some employers require a more extended amount of time like a year before you can participate in the 401k program. The sooner you decide on a 401k the better, you're money will grow allowing you to live comfortably during retirement.

 

What Should I Look Out For With a 401(k)?

401k Savings Plan

Many companies require you to stay with the company for a specific amount of time before you can keep their contributions. Don’t be afraid to ask the company for details about their 401(k) offerings. While some companies will help to maintain your plan for no cost, many will request fees for maintenance.

Remember to keep an eye on the policy that shares what percentage of your contribution a company is will match. Some companies do not match a percentage. However, while a 401(k) plan is better than nothing an employer that offers a higher match percentage is ideal.

At this point, you should see the incredible advantage of working with a company that offers a 401(k) for retirement. While you might be comfortable with your current income, what happens when you retire and your active income drops to nothing? The answer to not only comfortably in your older age but also essential security, comes thanks to your 401(k) contributions.

 

When Can I Take Advantage of a 401(k)?

Now that you know your company selection and current financial contributions can shape the latter half of your life, you might ask when you can begin to access that money. When does retirement start for a hard working individual such as yourself?

Generally, you need to be 59.5 years of age to obtain your contributions without incurring a 10% withdrawal penalty, but if you decide that you need money from your 401k sooner you may do so paying tax on what you withdraw.

If the 401(k) game isn’t new to you, or if you remembered that one of your past companies offered a plan you can opt to move the assets into your new employer’s plan. If your new company has a human resources or finances department, it may be best to speak with them to determine the best course of action for your future.

 

Why Should I Work Towards my Future?

When we work hard at our jobs, many of us keep our eyes on the present to ensure that ourselves, and our families, can live comfortable lives. Still, working with your employer goes beyond merely considering the present day. Every day we work, we need to be conscious of what we will do one day when we are no longer able to drive long hauls or provide the services we have previously.

Finding an employer that offers a 401(k) retirement plan helps to shape your future, allowing you to enjoy your elder years. If you are currently seeking driver opportunities with a company that is keen to look after your future, be sure to checkout Logiflex.

Not only does Logiflex offer drivers disability insurance, life insurance, and pet-friendly vehicles, but also that critical 401(k) retirement plan that we have been discussing. If you are ready for the next step of your life, apply at Logiflex’s website today.

 

© 2018 Logiflex Inc

Blog / Uncategorized

Buy vs Lease a Truck?

Buy vs Lease Truck is one of the first decisions future owner-operators must face. Both options offer benefits as well as drawbacks. There are...

→ Read More

Winter Driving Tips for Truck Drivers

A calm sea does not make good sailors, and driving in Florida only does not make good truck drivers eater. For the best winter...

→ Read More

Don’t Haul Without a 401(k)

Don't Haul Without a 401(k) Not all employers offer the same benefits to their drivers; if you are looking for a comfortable retirement, then...

→ Read More