Lease onto or own authority?

You got to ask yourself one question from a shipper's perspective "Why would I want to use you to haul my product? Are you reliable? Can you cover a loss if there is one?" If you don't have the freight for sure lined up, it's going to cost you a lot of money during the time it takes to build up the reputation to win good contracts. In my opinion, if you've never owned before, buy a truck and lease onto a carrier. You'll have plenty to worry about without adding freight availability and income worries piled on top. Maybe one of the local milk hauler's would be interested in leasing on a owner-op? Would be a good way in.

 

When I got my first truck I got my authority as well and NEVER looked back. Yes you have to setup with brokers and make contacts. Trust me it's not hard. Get you five or six good brokers and haul for them all the time and you will make decent money your first year. Leasing on to me I'm not my own boss. You still have to depend on someone to get your loads. You control your own destiny with your own authority

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I haven't been around as long as some of the drivers out here, but I talk to a lot of drivers (company, o/o and independent o/o's) and am currently following the advice given me by most guys who are owners told me when I asked this same question.

1. Buy a truck
2. Find a company to lease on to until you learn the freight lanes

I figured the best way for this, and to prepare for having my own authority (and running load boards etc before making contacts with brokers) was to lease on to a company that had load boards for me to pick from. As topcat1974 said, leasing on and having someone else find my loads for me isn't being my own boss. Of the two big (and really only 2 companies I could find with load boards at a quick glance) companies Landstar & Schneider, I chose Schneider... mostly because I heard from a few Landstar guys they were leaving due to freight getting too slow. I've been at Schneider now as a leased on o/o (with my own truck, I'd never lease purchase) running on their IC Choice program (picking your own freight) and have to say this was probably the best move I've made since getting my CDL. Everyone's freight is getting cheap because they're all trying to undercut each other, and yes I've even seen some loads I hauled back in Dec. cheaper by nearly $200 now than it was back then. Even with that being said, I've got some of the best support staff at Schneider that I've ever had, and I can still make very good money out here. By choice, I don't go west of I-35, and while I'm sure that's cutting me off from quite a bit of freight and revenue, I'm doing so well east of I-35 I don't miss it.

My advice, from a newbie owner op, is buy your truck, lease on to a company (if you want the local dairy market then talk to those companies before you buy) learn the industry from a leased operators point of view, then get your own authority if you wish. As things stand now, my 'plans' of getting my own authority are on hold.... why ruin a good thing?

 

One thing to consider when you get your authority is that you will usually need to not only buy a truck, but also a trailer. Most carriers have their own trailers that you can pull or sources where you can rent one to use. When you run your authority you will need money for insurance, base plates and operating capital until the money starts to come in. Most carriers to whom you lease will pay you weekly and may either furnish or finance your base plates. The carrier also pays for the cargo and liability insurance.

I also started out by getting my own authority after having driven a company truck for a while. I have leased to a couple of other carriers, but have run my own authority for most of my career. I also started out by paying cash for my first truck and trailer. That was a big help for me, as was having several years of business experience. There are many success stories in this business. Some have found success leasing to a carrier while others have found their success while running their authority.