Fed Ex and EO
- Thread starter Weave
- Start date
Hi Weave,
If you were in their shoes would you advertize on this site? They are the most talked about company on this site. So why pay for something you get for free? --------- I didn't notice the flashing trucks hitting me right in the face. Oh well I guess I was wrong. Or way-be Lawrence gave them a free-be. HA HA HA!!!!!
If you were in their shoes would you advertize on this site? They are the most talked about company on this site. So why pay for something you get for free? --------- I didn't notice the flashing trucks hitting me right in the face. Oh well I guess I was wrong. Or way-be Lawrence gave them a free-be. HA HA HA!!!!!
A couple of weeks ago I was talking to another distinguished member of this board who hails from the state of Virginia.
He told me FECC is having trouble with recruiting right now. Not because of the usual problems they but because they can't find anyone who can get financing for a new truck.
According to my right distingushed collegue People who don't have 25% down payment and 10 years experience in expediting are being turned down due to the excessive number of repos in the recent past. Maybe they decided to go where the "veterans" hang out. That is probably why they extended the age of the fleet recently.
Just an uneducated guess mixed with my usual ramblings and half thoughts :+
He told me FECC is having trouble with recruiting right now. Not because of the usual problems they but because they can't find anyone who can get financing for a new truck.
According to my right distingushed collegue People who don't have 25% down payment and 10 years experience in expediting are being turned down due to the excessive number of repos in the recent past. Maybe they decided to go where the "veterans" hang out. That is probably why they extended the age of the fleet recently.
Just an uneducated guess mixed with my usual ramblings and half thoughts :+
Yes, the financing is definitely a matter. It is not easy to finance a truck now, even for experienced O/O's. The barrier is huge- for example the banks who work with KW of Ft Wayne would not touch me (4 yrs. O/O, perfect credit, no missed payments, etc) for anthing less than 20% down! That's a HUGE outward expense, but they figure that to be the off the lot depreciation on a new truck. I couldn't afford it, for sure. Nobody can.
I did get financing through Diamler/Chrysler however on my used Freightliner, with only 5% down as I financed my FL70 from them, and they knew my record. They will not finance inexperienced O/O's anymore the way they did in the past. Number one on the list of leased expedite trucks repo'ed from D/C- you know.
In the end, what the banks and finance companies are doing is a good thing all around. Not only for the truck market, but for truckers and owners in general. What this is doing, in essence, is eliminating the scenario where Hubby-Wife with no experience but good credit, walk into a dealer and get into a $100k truck, lease it to you know who, and have it repo'ed less than a year later. Who ends up paying for the loss? Everyone except you know who. Overzealous recruiters create a lot more problems than they think.
-Weave-
I did get financing through Diamler/Chrysler however on my used Freightliner, with only 5% down as I financed my FL70 from them, and they knew my record. They will not finance inexperienced O/O's anymore the way they did in the past. Number one on the list of leased expedite trucks repo'ed from D/C- you know.
In the end, what the banks and finance companies are doing is a good thing all around. Not only for the truck market, but for truckers and owners in general. What this is doing, in essence, is eliminating the scenario where Hubby-Wife with no experience but good credit, walk into a dealer and get into a $100k truck, lease it to you know who, and have it repo'ed less than a year later. Who ends up paying for the loss? Everyone except you know who. Overzealous recruiters create a lot more problems than they think.
-Weave-
Interestering comments. My FL 70 is a 1996,this is 2002 so it is on the books as a 6 year old truck.This year they gave me a 2 year extension,which will allow me to run for 8 years. However the truck has performed well for them (FDX CC) no missed runs etc.As of today I have 607K on it and think it should be able to make 750 K without any major problems. This secnario happened back in 1995-6 in where many trucks were put on with minimun down payments,then were repoed after 1-2 years,someone from Mercedes Benz Credit actually called me asking me about (at that time) Roberts Business levels. They were sitting on a lot of paper as they called it and would not approve new users unless they put 30-40% down. Weaves piece of Iron is sure nice but having a truck payment of zero is also nice.However increased maintenance as Weave can surely tell us is eating up about 30% of that zero payment,just had a rear axle seal go out to the tune of $330.00
It still works out best, from a tax standpoint, to have a truck you are making payments on and depreciating during the period of the loan. If you have ran out the depreciation on your truck, a huge hunk of your profits are just going to Uncle Sam, while you are running an older, not so nice truck anymore. The "cash cow" is hard to feed at tax time. This, along with increased maintenance, is why you don't see the big fleets keep their tractors much more than 6 years. They can't afford to. If they could, they would be running the things till they dropped. Driver comfort, believe it or not, is NOT the main reason why Schneider-Man has that newer conventional now.
-Weave-
-Weave-
One thing that I was advised to do many years ago was to use the standard business mileage deduction instead of deprecidation and operating expenses.In spite of what Frank Katz says the IRS has no problem with this ,as I was audited once and they approved my mileage deductions.If you do the math on running 100k per year it works out to be a better deal,but only if your truck costs about 60 K or so.For a 100,000 tractor the deprecidation factor would be better. One interestering thing is that you can!t change your tax deductions in mid stream,if you start out with deprecidation/operating costs you have to stay that way with that particular unit.So it makes sense to buy a new vehicle when deprecidation is maxed out,but if you started with mileage deductions you can continue forever with that unit..
It really depends on the amount of miles you figure you are going to run in 1 year. If you take 20% depreciation allowance on a 51,000 truck,that is only about 10,000 plus whatever your operating costs are.But if you run 100,000 miles you can deduct $34.000.00 off the top plus your business loan interest only,not the payment. I think we are at .34 per mile this year,could be slightly less. So work out the math and decide whats better for your situation..Good luck
I am going to try a simulation with a tax program I have using the truck I just bought and an estimate of expenses based on last year's. I paid $54k for my truck, and average about 80k miles a year. I will try the program both ways (depreciation or business miles) and see what works better. I was told years back depreciation works out better, but I was just going on what someone told me and did it that way without trying business mileage deduction. It would be so cool if you could use both:7
-Weave-
-Weave-
To Rich M, & Weave
I have noticed your post on the standard milage vs depreciation and actual cost. Its true that the best way to go is mileage, but if the IRS decided to crack down on the mileage deduction, then basically all of you would be in trouble and owe uncle sam.. I dont want to see that happen, I only quoted the actual Law for the standard deduction that is written in the various publication that are available from any IRS office or can be downloaded on the IRS website. [www.irs.gov.] Oh, by the way the standard deduction for 2002 is 36.5 cents per mile
Frank Katz
I have noticed your post on the standard milage vs depreciation and actual cost. Its true that the best way to go is mileage, but if the IRS decided to crack down on the mileage deduction, then basically all of you would be in trouble and owe uncle sam.. I dont want to see that happen, I only quoted the actual Law for the standard deduction that is written in the various publication that are available from any IRS office or can be downloaded on the IRS website. [www.irs.gov.] Oh, by the way the standard deduction for 2002 is 36.5 cents per mile
Frank Katz
Yes, one can make out like a bandit using mileage deduction (if legal.) Do we need to warm up Rich's jail cell at San Quentin?:7
I'm not so sure. Taking mileage deduction says the truck is part of a business or corporation. Depreciation says the truck IS the business. As Rich made it through an audit, I would have to say it is legal either way.
-Weave-
I'm not so sure. Taking mileage deduction says the truck is part of a business or corporation. Depreciation says the truck IS the business. As Rich made it through an audit, I would have to say it is legal either way.
-Weave-