Words to the Wise About Gap Insurance - Never Buy From Car Dealers!

I first published a post about this back in 2017 on my blog. A few months prior, I had just discovered Gap insurance, did some research on it, and found what a gold mine it was for car dealers. If you feel you need it, there's a much cheaper way!

"7/1/2017: A couple months ago, I wrote a post titled Why I Absolutely Hate Buying Cars about my recent experience buying a car from a dealer.

Prior to this year, the last time I bought from a dealer was in December of 2008. I purchased a 2009 Malibu that Chevrolet had just redesigned for the new model year. I bought it from Gus Paulos Chevrolet and they gave me an excellent deal on it. It certainly helped that the 2008 recession was full on, cars weren't selling and dealer lots were full. They gave me financing that matched my credit union rate and didn't try to find ways to rip me off like this most recent dealer attempted to do. The contract was clean and no "extra" charges were added to what we originally agreed to. Since moving to Salt Lake City from Wisconsin in 1993, I've bought three new vehicles from Gus Paulos and they have been fair to deal with. That Malibu turned out to be a great car and I seriously considered getting another, but decided on a slightly used 2016 Nissan Altima dealer fleet car that had only been titled for 6 months.

What a difference this year I had with this other cutthroat dealership! Prior to a couple months ago, I had never heard of "Gap Insurance" and had to ask what it was when this latest dealer tried to include it on my contract for $895.00 and throw it into the finance agreement so I could pay interest on it! The finance guy stated that if I totaled the car in an accident and received less than I owed on it I wouldn't be responsible for the difference! I refused and almost walked out on them until he redid the contract, taking it out along with a couple other things they were trying to get me for.

Since then, I've done a little research on this Gap Insurance thing. My thoughts: First, if you ever think you need it or want it, you can get it through most car insurance companies for a couple dollars a month! (My car insurance renewal is coming up next month and I actually just checked a quote I had for Progressive: $6.00 for six months.) Don't get it through a crooked car dealer that charges $895.00 and tries to throw it on your finance agreement. I am still so aggravated that jerk thought he could sneak that past me, it makes me wonder if there was sign on my forehead that said "stupid"?

Second, if you are so upside down between your finance agreement and what the car is worth, you probably made an incredibly BAD deal. You can't trust a car dealer to be looking out for your interests, they will clean your pockets out of everything they can get. You have to examine every line on the contract and finance agreement and understand what you are getting charged for.

In a conversation with one of our drivers this past week, he told me about buying a new vehicle and falling for the exact same thing. He never realized what he was signing for until after the deal was done. By that time it was too late and it cost him over a thousand dollars.

Don't become a victim!"

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A Few More Stories about "The Boss"

This is related to the previous post I did, "Salute to the Tasmanian Devil of Third Party Logistics".  The post referred to the passing of my old boss that I had the great fortune of working 10 years for starting in 1993. His name is Craig Schneider, who at the time was a Senior Logistics Manager for Ryder Logistics in Salt Lake City and quickly advanced to a Director in the company.

Another BOSS man story. Craig didn't normally talk about it unless you asked him, but he had a photo on the wall of his office with him in a Miami Dolphins uniform. He was actually on Don Shula's team in 1974! That was the year after two consecutive Superbowl championships. Bob Griese, Larry Csonka and Mercury Morris were still on the team. Craig was signed as a lineman, then cut, then signed again. After getting cut again, he decided it was time to get a real job. Good for me, as I then ended up working for him 19 years later. Although he never got to play in an NFL game, he was a hell of an athlete to even get to that level! I'm a fairly long legged guy and I remember having difficulty keeping up with him as we were hurrying through an airport. He was like OJ Simpson in the old Hertz commercial, LOL!

Memories of the BOSS (Craig). We were in Vegas working late one night on a startup. As almost always, one person went out to get food so the rest could keep working. That person elected was me and it was decided to go to In-N-Out Burger. Everyone ordered a Double-Double with cheese/onions and fries. Craig said he wanted two. I asked him if he was sure about that, and he said he was hungry. Well, I brought the food back and Craig wolfed down both Double-Doubles with the fries and about an hour later he was in agony, suffering big time. He dismissed us and we called it a night. Got off early! LOL

Craig was a big fan of the TV show Seinfeld back in the 1990's. I didn't watch a lot of TV during that time, being so busy, with an irregular schedule. When out of town with Craig, he always had to be back to his hotel room to watch the latest weekly episode on TV. It was always on Thursday night at 7:30 pm mountain time. On those nights I knew we'd be done working by then, LOL. It wasn't until many years later, I greatly enjoyed watching the series in reruns.

And then, there was Emily, who was hired in a clerical position right out of high school about 1996. Her brains and ability quickly became evident as Craig promoted her up the chain into her currant role as Regional Manager at a freight and logistics company. She recently sent me this: "I think of you every time I see great food posts about places that we used to always eat at back in the day lol! I have so many great memories of Daniel S. Bridger, Bob Carter & Jim Maxson, driver trainers I'd never met until I had to pick you guys up at the airport. All Craig Schneider told me is you guys knew his Maroon Ford Taurus. And who ever jumped in it, bring them back to the office, lmfao"

One of Boss Man's often stated quotes "Bottom line, it's chump change!". Often heard when discussing the cost of implementing a new policy or investing in new equipment, LOL!

It was a wonderful 25 years I spent living and working in Utah. So many great friends made, and co-workers that worked together as a great team to get things done! Under the leadership of Craig, he was a major reason I stayed there until retirement in early 2018. Although I surely missed my family and friends back in Wisconsin all those years, it would have been foolish to leave. It's been a hell of a ride and a great one!

Salute to the Tasmanian Devil of Third Party Logistics

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Salute to the Tasmanian Devil of Third Party Logistics

A Celebration of Life service is being held today in Las Vegas for my old boss, Craig Schneider. He was just 74 years old and only recently retired. I am also now retired and had the very great fortune of spending 10 years working for him starting in 1993. I was working for Ryder Dedicated Logistics in Wisconsin and transferred out to Salt Lake City, UT. Craig was a senior logistics manager there at the time.

That division of Ryder Systems, Inc is a third party logistics provider employing more than 10,000 drivers serving the transportation needs of companies throughout the US. Our major customer in Salt Lake was/is one of the largest independent bottlers of Coca-Cola in the world.

It was a hell of a ride with Craig rapidly being promoted to Director in the company (Ryder). There are only a very few people in the lives of most of us that really make a difference. One of those for me was Craig. Long story, short, he was most responsible for my 25 years spent living and working in Utah. The man taught me so much, and reined me in hard when I needed it. I always appreciated his work ethic and what he taught me about business. A great man that made a huge difference in my life.

Craig was always thinking “outside the box” and throwing out ideas and concepts to customers, colleagues and employees constantly. I remember a customer's high level manager telling me that hearing some of Craig’s ideas would seem so off the wall, but ended up being brilliant. Hence the “Tasmanian devil” and “bull in a China shop” references to him. His leadership style produced amazing results directing a great team that enjoyed working for him throughout the inter-mountain west. Rest in peace Boss!

What follows are some of the online comments I received expressing how respected and appreciated he was from colleagues and former employees:

From BM:

Craig was a hell of a boss and mentor!!!! He stuck up for me when others were trying to take me down. I owe him so much with what I learn in life and management!!! Rest in Peace My Dear Friend!!! Thank you Dan for posting this!!!

From YS:

One hell of a boss for sure. Rest in peace boss man.

From DT:

God Bless him and his family

From MC:

Oh no, what a great loss. One of the greatest guys I ever knew and worked for! RIP Craig!! Thoughts and prayers go out to you and your family!!

From ML:

I am so sorry to hear, he was a great person and boss. RIP

From CW:

He was one of a kind! I learned so much from him in the 15 years I worked with him. He was the kind of boss who believed in his people and brought out the best in them. I was shaped by his leadership and he pushed me to be the best I could be. I will forever be grateful! This world lost a good one.

From NW:

With Dan's comment, Craig gave me opportunities that I never dreamed of. Will miss him

From DC:

Sorry to hear

From BK:

Good man, I have a picture of him and me together of him handing me the 1st place truck rodeo trophy. Condolences to his family.

From JD:

Lousy news. He was his own logistics engineer because he could keep the numbers in his head. More importantly he led his team with an all for one and one for all approach that for a long time produced some impressive results.

From DT:

A Good man

From YM:

That's Craig for ya. He used to make me laugh with his stories of different startups. RIP Craig

From JP:

Amen, brother. Only reason I became COO of *****, was Craig. I owe him for taking a chance on me. Speaking of *****, I retired. Will re-engage somewhere, and take some time for rest.

Bottom line (one of Craig’s frequent expressions), he had such an impact on so many lives, he deserves a tribute. I authored a book in 2020 that describes many of our adventures throughout the 1990s, into the early 2000s, My Truck Driving Life, if you’re interested. From us two haoles working a startup in Hawaii to Las Vegas, Phoenix, Denver, Seattle and throughout the intermountain west, it was a fascinating ride for me, a cheesehead from Wisconsin. I wish I could be there in Las Vegas today, not possible, but this man will live on in my frequent dreams as long as I’m still around. Craig Thomas Schneider, always will be, The Boss!

On this road called life, you have to take the good with the bad, smile with the sad, love what you got, and remember what you had. Always forgive, but never forget, learn from your mistakes, but never forget. People change. Things go wrong. But just remember, the ride goes on. Credit: simplereminders.com

Craig Thomas Schneider Obituary

Aunt Lorraine and her "Safety Sentinel" Speedo

My Aunt Lorraine was one of my favorite aunts, but she was a pretty scary driver.

Growing up in Milwaukee’s inner core, dad was the only driver in our house until after we moved to the northwest side in 1964. I didn’t even ride in a school bus before then so my exposure to riding with other drivers was very limited. Dad was a skillful driver, took pride in driving and he told me once that his long time dream was to drive race cars.

His older sister, Aunt Lorraine was a whole different matter. She was 4 years older than my father and basically raised all the younger siblings after their mother died when dad was only 14 years old.

In the early 1960's, I remember riding a few times in her big Oldsmobile. She scared the hell out of me, seeming not to be paying attention to where she was going. She could not hold the throttle steady, always either on the gas pedal or off of it, especially if she was talking, which was most of the time! She had what they called a Safety Sentinel on her dashboard speedometer. It had a little button to adjust the speed setting you wanted, say 65mph. As the indicator approached 65 the indicator bar would turn yellow and then red when you hit that speed and an irritatingly loud buzzer would sound off. So she would be on the gas until the alarm sounded and then off the gas coasting until she realized how slow she was going. Then hit the gas pedal and repeat the cycle again. It drove me nuts as it seemed she wasn't paying attention. I was always so happy to get out of her car.

I later found out that her driving would catch the attention of the police as well, resulting in being sometimes pulled over. She almost always got a break however, talking her way out of a ticket with just a warning to be more careful.

Later in the mid 60's she bought a brand new Checker Marathon car that was specially built by the Checker Cab company. I think it was built in Michigan and they were for sale to the general public. It had a Chevrolet motor and had enormous back seat leg room due to the special configuration. Throughout the years, it seemed she always had a new dent or scratches on her vehicles and she had a couple crashes I remember hearing about as I got older. 

She was fun to be around and always had good stories to tell, but after the first few rides, I always tried to avoid having to go anywhere with her driving. After we moved to the suburb in 1964, mom grew increasingly frustrated being without transportation. She always had a driver license but never drove and dad was against it. In a brilliant move, mom decided to try and get Aunt Lorraine involved to help out. She expressed her frustration and dad’s resistance to his sister and one day she came over to the house. Mom got in Aunt Lorraine’s car and they went out shopping. I came home from school to find a 1962 Plymouth Valiant in the driveway that she bought for $300. Aunt Lorraine stayed until after dad came home from working second shift that night, knowing there was going to be a confrontation.

She kind of raised dad into adulthood and he reluctantly backed down against the both of them. It all worked out though as he found out a second driver in the house relieved him of a lot of running around. It also forced him to finally get car insurance as he always figured he didn’t need it. That would have quickly become an issue for me because I was nearing 16 years old and dreaming of getting a driver license and driving a car! So, very grateful to dear Aunt Lorraine for her help!

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Truck Drivers: Beware the 1099! - Words of Caution

What follows is a social media conversation I had recently with a truck driver. He was seeking advice about signing up with a trucking company claiming they pay company drivers $100,000 per year (as 1099 income). It sounds great? 100k a year! You can live really well on that, right? But there's a little catch. 1099 statements mean you're being paid as an independent contractor, not an employee. Technically, there's a huge legal distinction between the two and not to be taken lightly.

I lost my patience knowing the guy had already made his mind up. I have not named him for obvious reasons.

HIM: I found a $100,000+ a year job as a company driver., but you are responsible for your own taxes you will be filing a 1099. Inbox me your information.

ME: Probably illegal. Find a reputable company if you're going to be an employee. This one, you'll get screwed.

HIM: how can you get screwed if they 1099 you I never heard of this before explain

ME: OK, John, I'll try. Any good road driver can make over 100k per year with a decent company these days. You said you can make 100k on a 1099. That means you will pay the full Social Security tax, both employer and employee portion,15% total. So you will pay 15k off that 100k knocking you down to 85k just to start. Then, say you want 2 weeks off for vacation. That cuts your gross income another 4k down to 81k. Now, you will need some health care insurance, oh that ain't looking good, figure on another 12k minimum. That knocks you back to 69k. What about some disability insurance in case something bad happens? Another 2k, down to 67k. And you haven't paid a dime yet in federal or state income tax. Now, what about road expenses, like meals, hotels, showers? I could think of more, but, please believe me, you will get screwed. I spent my life in trucking and I've seen so many get taken for a ride. Good luck. 

HIM: but this is standard and get an extra $600-$1000 a week should help with benefit. Correct me if I’m wrong plz

HIM: it’s call good business no one forcing anyone it’s a contract you have a right to hire a lawyer if you don’t understand the contract or you can sign the contract and get a lawyer to try to sue that company. This been around for a long time so I will say good luck with that.

ME: Yep, it's your life, go for it! I was just trying to warn you. And you were asking for advice. I knew I was wasting my time, but I tried. Carry on. Oh, and a couple things, since you'll be self-employed, don't forget to budget for a tax accountant/bookkeeper, minimum, a couple grand for a good one (That was quite a few years back, they're probably a lot more now). And you should put a lawyer on retainer, and those guys ain't cheap. And with that independent contractor status, you may now have some legal liability in case you get in a wreck. Better set up an LLC for that (more ongoing costs). Get a separate business checking account to make it easier as you will have to file business tax returns as well as personal. More fees. DO NOT fall behind in your estimated income tax payments, as the IRS will come crashing down hard on you, I've seen what they can do. BTW, I was a driver for 38 years and also had a sideline income tax prep and bookkeeping service for many years, specializing in trucker service. You will quickly find a big fish (the government) and all sorts of little fish circling and taking chunks out of that 100K. Save this post and let me know how it's going in a couple years. Good luck.

I admit, I was short tempered with this guy, but I've seen it so many times. These trucking companies taking advantage of drivers that have no business experience, and most of them are not legal if a company assigns you equipment, tells you where to go. It is illegal to misclassify an employee as a 1099 independent contractor to avoid paying payroll taxes and benefits. 

If any of the following apply, you are an employee, not an independent Contractor.

• Company drivers: Drivers who use company-provided equipment, follow company-set schedules and routes, and are subject to the company's direction and control.
• Lack of investment: Drivers who do not have substantial capital investment in their own equipment and tools.
• Exclusivity: Drivers who are exclusively tied to one carrier with no ability to perform services for others.
• No control: Drivers who cannot decline loads and must adhere to specific instructions on how to do their job.

I've talked until blue in the face to some drivers that decided to try this, one in particular. He had a wife and young kids and was always near the top in earnings for us as he would do anything, take extra runs, work 6 days a week to make money. He didn't have an earning problem, he had a spending problem, if he had cash, he had a need to spend it. After a while, a small trucking company owner got in his ear, preaching that he could make $2 per mile working for him. "Just buy a used tractor and come to work for me". I couldn't talk him out of it, all he heard was $2 per mile and he was going. He eventually asked me to do his books and tax returns for him. He was in deep, so deep, it ruined his life. He ran hard for this guy, was never home. I talked to him once while he was on the road. He was running in 95 degree heat, his A/C had quit and he couldn't afford to fix it. He had trouble just paying for basic repairs to keep the truck on the road, let alone fixing the A/C. Finally, he went to the trucking company owner telling him he didn't know how much longer he could hold out. The owner told him, he could solve all his problems with a new tractor that got better fuel mileage! It didn't end well, it ended horribly.

There is not one driver, that I know personally, who successfully switched to be an independent contractor. Every one of them eventually went back to work as an employee, with most deeply in debt and paying off their previous obligations. That's not to say it can't be done, there are exceptions, but "why take the risk"? Many years ago my wife (the one I had at the time) asked me why I didn't buy a truck. That was my answer. Truck drivers have a difficult enough life, why add a whole bunch of stress to it, while working for less than a reputable company would pay?

One driver told me he could write off meal expenses as an independent contractor, while employees couldn't. That is true, the income tax reduction reform in the first Trump term did away with the employee business expense deduction. While away from home overnight employee truckers could deduct $65 per day for meal expenses as an itemized deduction. It is important to consider that this was not a tax credit, but a deduction. And only those expenses that exceeded the first 2% of your adjusted gross income were deductible. And, you also had to itemize deductions to claim it. If you compare this as an employee to your company paying half your social security payment (7.5%) as well as matching contributions that most make into your 401k of several thousands of dollars, paid time off, company contributions to your health care, disability and life insurance plans, it's not even remotely close to meal deduction savings.

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