Leasing on to an auto transport company

I don't understand. If you have your own Authority and Insurance, why pay them 15% for what? Calling you for 5 minutes and giving you a load? What am I missing here?

 

That statement just answered yourself. I'm new and coming out as O/O with own Authority. It's out there. Just not going to fall on your lap. Just do research and you will find what you need. I personally go to a local TS and as O/O's are fueling I pick their brain. Been doing this for 2 months. And even already have a few shippers lined up to get me out of this LOW paying Freight State ( any guesses anyone?, LOL) . Still have a lot to learn. But not giving up .

 

There is no longer a distinction between contract and common authority. If you already have your authority and insurance, I don't understand why you would lease to another carrier. You will still be paying your insurance, if you want to maintain your authority. If you lease to this company you will be paying insurance twice. Why don't you just broker loads from them since you want to keep your authority? There are a lot of brokers and dealers around. You could find your own dealers and get loads direct.

 

Yes that is normal as far as paying for the insurance even if you aren't working. I myself am leased to a company and have been since 02 and like the fact of having freight available all the time and not having to look for loads. When you are leased to a company yes they take 15% from the load rate which is no different than if you get the load brokered to you by said company. I can tell you that when most companies broker a load they take more than the 15%. The other benefit to me about being leased to a company is I get paid and don't have to chase dealers or whoever if they write a bad check skip out or whatever. The company handles the problem and goes after whoever it may be (dealer broker etc)
Hope some of this may help you and I'm not saying leasing is the best thing out there but this industry sucks anymore from what it use to be so you find what works for you and go with it.

 

So I am thinking about leasing guys on, but I have always owned my trucks, so I don't know what is fair. However, to answer gman on one issue, is with my contract I can not broker. They must be leased on. Percentage is relative to rate in my opinion. Also my real problem is insurance. My agent will not let me get around a required down payment, which is a third of total policy. 3k min. However you get the last 3 months free, to save for the renewal. My other thought is fuel, I will not advance that either. The way I figure it, if a guy wants to work for me, then they need 10k for start up. Who has that laying around? Anyway I don't want to ramble.

 

he may be tired of dealing with brokers, and ever since CD sold out to dealers, the car dealers are cutting out brokers and lowering the rates. Private party moves are challenging at best, and auctions/new cars pay is horrible. If I didn't have the client that I do I would go back to hauling a box around.

 

any car transport company rent trailers

 

Welcome to the forum.

Try U-Haul

Or did you have something more specific in mind ? And, no, I'm not being sarcastic (Really Hammer, Stan, Brad - I'm not!), but your question is ...... ahhhh ...... pretty basic in the details.

Actually, re-compose your question and start a new thread. This thread, old as it is, is a bit off topic.