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Explain it to me like I’m 5

R/Trucker

Published:

Reading time: Less than 1 min.

Please help me understand how this is supposed to “work”. I am not a truck driver. My primary background is in finance. This is in regards to a truck lease (straight lease, not lease to own).

​

The total weekly fixed operating costs are $1410 – this is the truck rental, trailer rental, admin fee, insurance, IFTA. Variable costs are 15% of the load, maintenance deposit of .08/mile, and fuel/tolls. Assuming 3000 miles week at $2.00/mile with an average MPG of 5.5 and average diesel cost of $4.21/gal; you’d only gross about $925/week as a 1099 assuming no tolls.

I don’t understand how this would make sense to do. The first 4 days of driving are your “break even” point. Am I that far off on my numbers (miles per day?) or is this an insanely bad deal?



View Reddit by Primary-Sherbert375 – View Source

Primary-Sherbert375
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