Lease Purchase Program
PICK THE FLEET THAT WORKS BEST FOR YOU:
4-AXLE FLATBED FLEET
Run 2 Western States: Oregon and Washington (Primarily Interstate 5)
4-AXLE CONTAINER FLEET
Run 3 Western States: Oregon, Washington, and Idaho
TRACTOR INFORMATION:
· Contact company representative for available tractors.
· Tarps & Tie-Down Available for Flatbed Operation
Lease Purchase Operator is expected to be equipped with all necessary tarps and tie down gear. Mitchell Bros. can sell you “new” or, if available, “used” gear. Any gear purchased from Mitchell Bros. can either be paid in cash or you can purchase the gear through settlement deductions on a rent to own basis. Approximate cost for a complete set of “used” gear is $200.00 per month for 12 months.
· Qualcomm Satellite
Free installation and use of “state of the art” communication technology to help enhance productivity.
PAYMENT TERMS:
· To view available tractor(s) for sale and to confirm purchase price, please check with company represenative.
· $0.00 Down Payment
Required
· Tax advantages passed on to Lease Purchase Operator
The following terms apply:
> Operator must enter into our Contractor Lease and Operating Agreement for the duration of the purchase contract.
> No early payout - operator must complete 24 months or maximum length contract of 30 months.
> If engine requires a major rebuilt while under contract with Mitchell Bros., Mitchell Bros. will make financing available.
> Sorry, our lease purchase program is not available for fleet owners. Person who enters into contract must be driver.
> For complete terms, see Mitchell Bros. Purchase Contract/Equipment Lease.
MITCHELL BROS. PAYS THE FOLLOWING:
75% of Gross Revenue Pulling OUR trailer/chassis.
Note: Lease Purchase Operators are to pull company (or shipping line) provided trailer/chassis.
Ask a company representative for an estimate of earnings.
Fuel Surcharges
Note: Lease Purchase operators get 100% of what we collect for fuel surcharges. Historically, Mitchell Bros. successfully receives 98% of fuel surcharges that we bill our customers.
YOU PAY THE FOLLOWING EXPENSES:
· Fuel purchase program. You can purchase fuel using the Mitchell Bros.’ fuel card. There is no added charge to use the fuel card except the standard transaction fee of $0.00 to $.50 depending on the fuel location..
Note: You can also benefit by purchasing fuel from our tanker when in Vancouver, WA. There will be a $.05 per gallon mark up from our bulk fuel price, which will still allow you a considerable savings from normal truck stop prices.
· Mitchell Bros. shop will provide your tractor with all routine service. Our customary shop rate is $65.00 hour.
· Licensing: Obtain your apportioned license plates and other operating credentials. $250.00 per settlement is deducted from licensing until paid in full. Then, starting in the month of August of each year, $200.00 per settlement is deducted in pre-payment for the following year of licensing.
· State Fuel & Road Taxes: Mitchell Bros. sets up $.03 per mile for fuel and road (mileage) taxes. A statement of the total amount due and total amount deducted will be issued one month after the calendar quarter ends.
· Heavy Vehicle Use Tax: You are responsible for paying the Federal Heavy Vehicle Use Tax (Form 2290): $550.00/year. Mitchell Bros. will report and initially pay this fee, however, the cost will be deducted from your settlement check(s).
· Federal Annual D.O.T. Vehicle Inspection: No charge for first inspection. Subsequent years shall be charged $65 fee for tractor, $32.50 fee for trailer/chassis.
· Direct Deposit available for settlement checks The fee is currently $1.25 per settlement period.
· Administrative Fee: $100 per month for cost associated with administrative procedures.
· After Hour Service to respond to Tire or Road Service: $44 fee for provider to respond.
· Insurance
| TYPE OF INSURANCE COVERAGE | DEDUCTIBLE AMOUNT | MONTHLY PREMIUM |
| Liability Insurance (Property Damage & Bodily Injury) | $1000 | $440.00 |
| Bob-Tail, Non-Trucking Liability | $1000 | $45 |
| Tractor Physical Damage (Collision) | $1000 | Approximately 4.2% of value is annual premium. |
| Trailer/Chassis Physical Damage (Collision) | $1000 | Approximately 4.2% of value is annual premium. No premium if pulling a company trailer. |
| Cargo Insurance | $1000 | $0.00 for operators assigned to our container fleet. $50.00 for operators assigned to our flatbed fleet. |
| Load Securement Gear | $1000 | $0 |
| Qualcom Satellite | $1000 | $0 |
| Occupational Accident Coverage This policy covers you if you are hurt as a result of an accident. This is not considered a health care policy nor is this policy considered State Workers’ Compensation coverage. |
$148 | |
MITCHELL BROS. PROVIDES THE FOLLOWING SERVICES:
· Investigates and processes all accident and freight claims.
· Conducts marketing efforts and assumes all responsibility for billing and collections.
· Provides the necessary operating authority. (Mitchell Bros. has 48 State & Canada authority).
· Provides a passenger “rider” waiver policy. Passengers must be 18 years of age or older.
· Provides fully maintained, licensed, and insured trailers for those that elect to pull a company trailer.
· $10 per week phone card to call customers. Any balance left over can be used for personal use.
MISCELLANEOUS INFORMATION:
Escrow Fund
An escrow/performance fund of $2500 is required with Mitchell Bros. This fund shall be established by deducting $200 per settlement until the fund is established in full. The primary purpose of this fund is to ensure the lease purchase operator can satisfy any insurance deductibles if involved in an accident or cargo claim. Funds in this account shall earn interest which is paid out quarterly.
Maintenance Fund
Whichever is greater of $.08 per mile or $125 per settlement check shall be deducted from Lease Purchase Operator’s settlement check(s) to be applied to a maintenance fund. Funds from the maintenance fund shall be used for tractor maintenance and repairs only.
Cash Advances
All cash advances or purchase orders that are not withdrawn from your pre-established maintenance fund shall be charged a 5% fee. Your EFS card issued by Mitchell Bros. will allow you to take a cash advance in the amount of $200 each week subject to a transaction fee of approximately $1.25. Any additional cash advances must be approved by an authorized representative of Mitchell Bros.
Pay Days
Mitchell Bros. issues settlement checks on the 15th and the last day of the month. Loads hauled between the 1st and the 15th are paid on the last day of the month. Loads hauled between the 16th and the last day of the month are paid on the 15th of the following month. Ask company representative for a “settlement calendar” that shows deadline dates for paperwork to be turned in to be processed for payment. If your paperwork is not in the office by the “deadline date” you will not be paid for it until the following settlement date.
Health Care Coverage is Available
Ask company representative for information for your area.
Orientation
All Lease Purchase operators will undergo a 2-3 day orientation period. Our orientation is designed to answer most of your questions as we introduce you to Mitchell Bros. Truck Line. Items discussed will include: 1) how to prepare paperwork, 2) what to do in the event of an accident, 3) how to use the Qualcom satellite, and 4) much, much more.
Referral Bonus Pay
You can earn extra money if you refer a company driver or owner-operator (excluding lease purchase operator) that we sign on. For complete details, ask company representative.
We
will provide the experience and support for you to become a successful LEASE
PURCHASE operator.
For more information please call our Recruiting Department at 1-800-883-4557 (8am-5pm Mon-Fri).
The information, policies, and benefits described in this informational sheet are deemed to be reliable, however the information is subject to change from time to time.
