A buddy of mine was an O/O that was leased on to a company, but he came off the road in Feb. to start a new business but kept his truck. So, the truck has been idle since. I'm considering becoming an O/O and possibly buying his truck. It's a '12 T660. As far as I know, he doesn't have his own authority. I've been driving since '05, so I'm not fresh out of a trainers truck wishing on a pipedream lol.
My question is if I were to use the truck to keep it rolling and make us both some money before/if I buy it, could I lease on to a company in this arrangement? And if so, would it be treated as if I rented a truck from Ryder, Penske, etc.? Would I be able to get bobtail insurance in my name with the truck still in his? And would he have to do the paperwork and whatnot when I find a company to lease to? Anything else I should consider?
If this scenario isn't a good idea, let me know.
I have some other questions, but I'll start with these.
Running someone elses truck and leasing to a company
Discussion in 'Ask An Owner Operator' started by CarsNCameras, Jul 27, 2020.
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I would say you could. You write lease agreement between him and you for the truck, than you lease on to a carrier. Insurance shouldn’t be a problem but make sure to mention both leases when buying it.
CarsNCameras Thanks this. -
Sounds no different than leasing a Penske tractor and leasing onto Landstar.
CarsNCameras Thanks this. -
That’s what I figured. My brain was just overthinking the situation, as always lol. Thanks!
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Anyone have suggestions on how to set this deal up with my friend? He says the truck is paid for, but I still want to make this worth it for both of us and so I can save more money to pay cash.
The plates aren’t current though, so how would that work if leasing to a company that pays for base plates and getting to a terminal? I just have to cough up the $2k and get new ones, or what? -
Just buy the truck, then get your own plates and run it like a business, and do your due diligence with the truck, don't trust anyone.
Dale thompson and CarsNCameras Thank this. -
After I did some numbers and digging, my buddy and I came to an agreement for me to buy the truck on payments. I’m going to have an attorney draw up a contract for what we agreed on.
One step closer to telling my current company to pound sand lol.Speed_Drums and Coffey Thank this. -
Keep in mind with your own plates comes IFTA and its wise to put the IRP in a business tax ID "Instead" of your own personal SSN. The company you lease onto will provide you with a ELD that will keep track of your mileage and every quarter they will either pay for your fuel taxes for you or they will give you a spreadsheet to show your mileage and you can take that and pay for your taxes yourself.
If you haven't researched ANY of the above that I mentioned please go and do so. IFTA will send someone your door and visit you for unpaid fuel taxes.
Also, with your own plates you have to register a Form 2290 so please look into that as well.Coffey Thanks this. -
Plates here in Ohio, according to him, are around $2k. So I’m going to go with someone that provides plates. I’ll probably be leasing on until after the new year so I can get some O/O experience in and an idea on where the market is going after/during this COVID stuff in 2021.Coffey Thanks this. -
Coffey and CarsNCameras Thank this.
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