how much does a new authority cost?

Look you are not getting it, to start up as an owner right after you gain your CDL without any exposure sets you up for failure. We have people here would say I'm full of it, they did but they don't tell you they are the exception.

For every one person who makes it to a year, there are 8 or 9 more who fail. This industry has a 85% failure rate, and I am not talking about drivers.

working for another carrier reduces that risk, doesn’t eliminate it but reduces it, maybe to 60%.

You should first see if you can even drive a truck, a lot of people think they are good truck drivers but can’t pass the simple road test or even a Pretrip, forget backing up …

so the progression should be be a driver first, work for someone else and gain experience in how to drive a truck, if you can.

 

Depending on what trailer you pull. I had over 100k in account after equipment was sorted. I put 37 k down on a new truck and I believe 20 k on a new Reefer. If my truck goes in a ditch on an icy road in transit I can settle a pricy tow and a rental. Remember if the law calls the towing company your stuck with that call. It’s a forced tow. It is up to the towing company to charge what they want. Open ended bill if you know what I mean. Trucking is a business just like any other. It takes some capital to operate. If not you may be like some of the others that eventually go out of business. Within a year or five. It will catch up with you. If you’re pulling a flat I would want about 80 k in checking account for working capital, Reefer 100k. These are bare bones. It’s really not much money these days. I don’t factor or use a dispatch service, and pay my insurance in a lump sum. Have two fuel programs, national tire account, eat at waffle house occasionally, and pray . It all adds up.

 

If you are leased on to a carrier they find you loads, you get insurance at a discounted rate, some offer base plates and IFTA and they take a percentage of your revenue.
When you have your own authority you are responsible for everything.
I don't know what your experience level is but both of the above are a lot of responsibility.

 

I recently got the ability to get my truck and work under someone's authority, as others mentioned current market is terrible for this adventure. If your looking for a quick cash cow start up business to be your own boss yeah this the wrong time to do it. Hate to say it but go try companies like ats that give you one year walk away lease options and get a taste of what the business is like. or just run as company driver, you'll probably put more personal spending money in your pocket, as owner your truck takes your income

 

14 or so months ago and for a couple of years before, you could have worked as a new O/O with a fresh CDL and likely printed money. But not now. Consider yourself lucky for not getting sucked in as a new O/O at the tail end of the boom, and just go to work for a good carrier if you'd really like to drive. Not working as a lease operator, not as a leased on O/O, but just a .60 to .70 cents per mile driver for a company that can keep you busy and will treat you right. The only O/O's who are making money right now and for the foreseeable future are those who have spent years developing contacts within the industry. The rest who do have adequate resources, like me, are merely 'treading water' if they're lucky. And the tail end, who don't have money to fall back on at all, are currently being bankrupted at a steady rate.

 

Sounds like a foolproof plan! As long as rates hold up and load availability holds up you'll be doing great. Oh and as long as the truck stays together everything should be great!

 

I agree with @LoneRanger. 100K in the bank after you purchase truck, trailer and insurance nowadays.

There's more to consider. Do you have a house and kids? Home time comes into account. In addition, having a low enough mortgage payment (or being mortgage free) and bills that side work will cover when the market is in the trash is important.

 

Are you paying cash for them both? If you're jumping in with your equipment paid off then it just might work well for you. Personally, I prefer old Iron, but to each their own. Use the search function around here. There's a wealth of knowledge that you can benefit from before making a decision that will put you in a hole you can't crawl out of. Either way, we have long ladders and will still help...but the goal is to avoid doing that in the first place. Best of luck to you.