The best advice I can give you is to take your time and think it through, and do a lot of research before making any move. IMHO it is better to be an owner/op than a lease/op, but only because you can plan ahead and buy your tractor with cash. You have tons of expenses to consider and you won't need a lease or truck payment dragging you down when you're the most vulnerable, while starting up. You also need cash banked for expenses until your pay starts coming in which can be 30-60 days after you start hauling on your own. Just some things to consider before you take the plunge. You might find you are doing better where you're at after looking at expenses vs. rates, etc.

Allow me, yea thats what I'm making now but its not all from driving. I only get .30 cent a mile and get about 2100 miles a week.the rest comes from unloading,I make 5 deliveries a week an usually takes about 5hrs to uload a trl. An now about to go to e-log so a lot of home time will be cut out.

Twhit2011, yea I'm probably going to buy my own truck rather than lease one. Just looking @ all options right now ya know. Thank 4 the help

You are missing a lot of the expenses. On a 0.93 CPM lease plus a 0.36 CPM FSC, you will only make 1.29 CPM. At this rate plan to run 3500 - 3800 miles per week to make the same money and cover your Cost Of Operation. Your fuel costs will be about 48% of gross due to the low pay per mile.

Read all the docked threads in the "Ask An Owner Operator" section. In addition, these are some threads full of great information:

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/146942-how-to-become-an-owner-operator.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/147854-what-would-experienced-o-o-buy.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/125507-what-estimated-operating-costs-o-o.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/148340-keeping-track-o-o-operating-costs.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/134211-no-experience-but-getting-authority.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/143100-rate-confirmation-question.html


http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/64679-my-numbers-o-o-leased-crete.html

Originally Posted by train1478

I need some advice on buying a truck or leasing not sure if my math is right.
Iv been a company driver about 5yrs now for a mid-small trucking company. They have been good to me, I get home 2-3 nights a week an weekend and make average 1000 week b4 tax. But I'm now wanting to own my own truck but my company does not deal with o\o so iv been looking at other companys but at a glance I don't think my math is right or I'm missing something so I need some help.

Iv always heard o\o is "were the moneys at" I'm wanting a KW900 but to start I may do a company lease to see how it will go an save on fuel. Been looking at a few companys an over all they seem alike But think I'm missing something. Not to pick on but take u.s xpress for example. There lease sounds good because all trucks have a warinty and new tires.


Say I average 2500 miles a week and they pay .93mile plus add .36 for a fuel surcharge =$3225
Was told they charge $455 wk for truck payment and $145 other fees so $600 week. Now after payment I'm @$2625 still good.
Now say I'm getting 6mpg @2500miles I need 416gal at a cost of $4 a gal I'm paying $1664 for fuel. Now my bring home pay is @$961 average a week that puts me at the same pay I'm at now as company driver untill one week i need a new tire $300, oil change $350 and truck wash $50 now I'm bringing home $261. And on top of all that I still have base plates,taxes,tolles and insurance.

This can't be right what am I missing?or when they say fuel surcharge is .36 is that what I would have to pay per gallon?if that were the case I see were I could make some money.

An last what are some things to do and ask for before buying or leasing a truck? Oil analysis,tire aligment, dot inspection?

Thank you so much for all your help!!!

Your lease payment is whats killing your figures. Save up your money and either pay cash for the truck or put down a high enough downpayment to make your payments lower. You'll need cash to pay for repairs, cash to maintain personal expenses and cash for the downpayment.

If you lease your truck from the company, you wont make enough money to make it worthwhile.

That's correct about the payments. Most people miss the fact that there are 4.333 weeks in a month, not that 4 * $455 = $1,820 per month isn't too high anyway. But $455 per week is $1,971.67 per month (4.333 * 455 = $1,972). I would be looking for $900 - $1,300 per month depending on a 2.5 - 4 year pay off. If you are going to run a cheap CPM lease instead of a % lease you will probably have to stretch the loan term and pay lower payments and more interest to make ends meet.

I'm not sure what other fees are. You didn't cover license, permits, insurance, maintenance escrow, fuel tax, trailer rent, workmen's comp, health ins, income tax and social security. Then there are misc cost, check fees, qualcom charges and excess mileage charges in many cases.