Leasing on to a carrier? How does that work?

I Personally would only recommend leasing on with Schneider or landstar because they both have a pretty good load selection method. If not those i's say go independent. There are other likely companies i just dont know about them and how good they are.

 

If you want to see what a typical lease looks like, you can contact OOIDA (www.ooida.com). They have one they will send to members. There are specific things that must be included in a lease. You can find those on the fmcsa website. A lease is a contract that outlines the relationship between an owner operator and a motor carrier.

When you lease your truck to a carrier, you give them exclusive use of your equipment. You cannot haul your own freight without the approval of the carrier to whom you are leased. Most carriers will either pay for your base plates and permits or advance the funds to pay for them and then deduct a fixed amount from each settlement. Some carriers pay your IFTA (fuel taxes) others will deduct the taxes from each load you haul. In most cases, the owner operator is responsible for all taxes, fuel, upkeep, bobtail or unladen liability insurance, workers comp or an occupational accident policy and any other costs associated with the operation of your truck. In addition, you will be responsible for paying your own 2290. It is $550/year and prorated from july until the time you put the truck on the road. As an owner operator, you are an independent business owner. As such, you are responsible for paying your own taxes, such as income, self employment, etc., The carrier usually furnishes their owner operators a fuel card. You can usually receive fuel discounts at company fuel stops. Most carriers will advance funds to your fuel card after you are loaded. The amount may vary somewhat from one company to another, but it should not be more than 50% of what the load pays. Your settlements are usually put on your fuel card, although some will give the owner a separate card for settlements. Some carriers offer direct deposit into your bank account.

The lease will cover the responsibilities of both parties. The way you are compensated and when, should be addressed in the contract. Detention and other types of compensation may also be in the lease. Make sure you read over the lease very carefully and don't sign until you do. You may also want your attorney to look over the lease. Most leases may be canceled by either party, at any time, and without cause. A lease is different from a employment contract. If there are companies in which you are interested, you can ask them to send a copy of their lease. Otherwise, you will need to look it over while you are at orientation. Leases are not usually put forth until the last day of orientation. It gives the carrier time to check your background. Good luck.

 

Well exposure is one thing, learning about how it works is a different ballgame. I know a guy who took his time and went to a couple companies with a deal - he would work for nothing to learn a specific part, dispatching for a month, doing the safety thing for a month and so on. He learned a lot more than being a driver, which really doesn't offer much in the way of the business side.

ALSO start with the FMCSA regs on leases, that will give you a good idea what is going on.

 

I'd take 30K, buy a new Pete and plan on living in it so buy a shower & small sink. Buy a trailer and then lease to Matson or Jones Motor etc. Write it off in 450,000 miles and trade it in. Never runs out of warranty. Right chradiohead, we need more laws, there aren't enough now. You go tell your Congressman.

 

A secritary won't give you any advantage, you need to learn. Knock on doors, ask questions and learn.

As for other drivers, I will give you a bit of advice, until you are on the road for at least two years, don't even think about it.

Another tool in your tool box is a lawyer, retain one who can read the contract and tell you what's good and not good.