What are the advantages of leasing rather than company driver?

Other than not being under forced dispatch, there is no real difference in how a company treats a lease operator from a company driver.

Money wise it can make a very real difference in net pay. If you are a lease operator then any fuel savings go directly to you. Any savings from having an older paid for vehicle go to you. Maint costs, if you own the vehicle, can be reduced somewhat, because you have a better choice about where and when servicing will occur.

However, leasing a new truck from a carrier will almost always result in less pay, and tighter control of that vehicle by the company.

 

Just be careful with the whole "no forced dispatch". As a lease operator where I was at, they had the same thing. I was sitting in Georgia on a Thursday trying to get back to Portland, OR by the next Wednesday for my daughters surgery. They offered me a load of 400 miles that delivered on Saturday so of course I turned it down. 400 miles for 2 days, who wouldn't. So they said if I refused that load, i'd sit. And sit I did. Not only did I sit the rest of Thursday, I sat all the way through until Monday morning. The first load they offered me was the very same "rescheduled" 400 mile load. So I ended up taking it. They said all you are (and this is their words), all you are is a glorified company driver. With that said, I dropped that load and grabbed a load from Pensacola, FL to St. Helens, OR and ended up missing my daughters surgery. Things happen and I know as drivers we miss out on things at home from time to time, that's the nature of the beast. But to tell strong-arm me into taking that load was absurd. Needless to say, I think I hauled a few more times with them and finally told them to kiss my rear end. I do believe that a lease CAN work, but you'd be hardpressed to find a company that is going to make it work for you. I read on here numerous times that the worst thing you can do is lease equipment from a carrier that you'll be hauling for. I ignored it and had to realize it on my own, believe me, they were right. Good luck man, you're gonna need it.

 

As a leased o/o, or glorified company driver to the rest of you, I like the added responsibility. I like the fact that if I get into an accident and wreck my truck or someone else's property it all comes back to me. I am way more careful than I was as a dumb Swift company driver.

On the money side, I have made more money as a leased o/o than I could ever hope to as a company driver. Case in point, I was picking up and delivering to the same place as one of the company drivers and they were just getting straight mileage. I made about 5 times what they made on that particular load. I am on percentage; it feels like I am having money thrown at me all the time.

 

Differences. You gain more freedom. It's your business, your truck (sorta) which means you can say no.... If something is important and they can't get you there. You have the freedom to drive your truck there on your own dime.. Leasing will still come with restrictions, with things like maint accounts. Which you have little control of, the money belongs to the truck not. Now if you turn in the truck then after repairs you get the rest of the money back.

People will say. That's not true. Well my first truck as an owner operator was a lease truck back in 07 after 2 years I turned it. It took 2 months and 1000.00 of it was spent on valid repairs. However I got 6800.00 back of the maint account. Granted i did 99% of my regular maint out of pocket. Which allowed me to build up a bit.

As for money. If the company you lease on to is good, and doesn't nickle and dime you to death, and keeps you running good. You can make a lot more money. However you have to realize your going to have to run harder than you did as a company driver. As a lease driver there is a breaking point mileage wise.

Example if you run 2300 miles a week as a lease operator, you would be making less than a company driver

Once you get to 2500 miles a week you start catching up to that company driver for weak

Once you pass that 2600 mile a week mark your pay will start to grow exponentially in comparison to company drivers.

granted all of this is relative to your operating costs and of coarse this is using a mileage based pay system over percentage based pay system.

home time or time off will hurt as a lease operator. You will hit the road afterwards running the first few loads just to get out of the hole your in. Because the charges continue to accumulate regardless.

If your planning on going down the road of lease operator. Get the numbers, I would also demand an engine history report on the truck your leasing. Fuel economy is king. The ECM engine history report will tell you the average fuel economy over the life of the truck..

things to take into account in your expenses that kill a lot of lease operators. TAXES! Put away for them. They will destroy you if you don't. Pay quarterly. Medical insurance is going to cost you more.

Well I could go on but it's getting late here and I have to roll in the morning

 

Most of the Lease drivers i talk to i make more then what they do as a company driver.. Some lease let you go faster then a company truck. Maybe no forced Dispatch? other then that there is nothing better then a company driver when you are leasing your truck from another company. Plus it says u have less then a year.. Why not wait it out and see if your really gonna love this job or not?

 

That's exactly what I was going to suggest TruckerPete1990! 8-J, as a lease operator myself
the best advice I could possibly give you is don't jump into being a lease operator without
doing your homework. You're going from company driver to being a business owner, there's
a big difference there. For the most part, depending on who you lease with, most things your
company now handle will be your problem. Take your time, talk to the O/Os and L/P drivers
out here, ask questions. Most are more than happy to share their knowledge with you. You're
still very new to the industry and have a lot to learn before taking this big step. No slam on
you, just the honest truth. You could be the best company driver in the industry, and still fail
as a business owner. The money is good, but this takes a serious commitment and hard work
to make it as a business owner in trucking.