Advice for new hotshot owner

That's The Internet Truckstop

https://truckstop.com/

 

so how's it going so far Alexander?

 

I think we lost him

 

is it best to lease to a company for hotshots or run under your own authority?

 

In my opinion, you're better off being a Independent. Why? Because in just about every lease agreement I have ever seen, read, or heard about, the percentage you pay out to be in a lease is just to much. Most companies that lease Owner Operator trucks on will tell you a percentage split, like 75% to you, and 25% to them. What they don't come right out and tell you about is all the extra fee's you'll find in the fine print of their lease agreement. For instance, the last lease agreement I examined for a guy, the company had fee's for just about everything, these fee's where on top of the percentage split. The money they were telling the guy he would earn didn't reflect these fee's. The bottom line is, that 25% they said they were going to be taking turns into more like 40% with the fee's mentioned in the fine print of most lease agreements.

Best advice I can give you is to read any lease agreement thoroughly, maybe even have a attorney look it over for you.

It's not that these lease companies really want to take so much, it's that they have to in order for their business to be profitable. Even if all they took was a true 25% (no extra fee's) it would be tough on you. That 25%, and then some that they'll be taking from what you, and your truck produces, that's what really makes a Independent Owner Operator successful. That money allows the Independent to maintain, update his equipment as needed, and better his position in life.

For instance, a Independent Hotshot Owner Operator, set up correctly, running a tight operation, and who's keeping busy, should Net some where around 55 to 60 percent. That's what's left after all operating cost.

In a lease you're still paying for all that operating cost like the Independent is, but now you're giving up and extra 25%, on top of that.

And just so you can see that I'm not just trying to make the grass look all that greener on the other side of the fence,

As far as being a Independent Owner Operator, there's nothing easy about it, it's a lot of hard work . It requires business sense, a good work ethic, good communication skills, the ability to maintain a positive attitude (even when the going gets tough), and a level of motivation a lot of people just don't seem to have, or be able to maintain. It's been like that since I started out in trucking over 30 years ago, and it's still that way today. If you're lacking in any of these areas, life as a Independent can be very short lived.

 

First off, thank you for your response. right now I'm an OO leased to mercer. But have always wanted to go under my own authority, but have been discouraged from all the negative I've been told about it. I've also heard that there are a lot of people that had their own authority but gave it up to lease to someone and run under theirs. But I've also heard that it is a lot better and you make more money. Right now being leased to mercer I'm averaging $1.89 all miles. But at some point I think I'm going to get my own authority for my semi truck side of it. But my fiancé has her CDL and was going to drive team but once she read about hotshot loads she now wants to do that seeing We have a 2012 Dodge Ram 3500 just sitting at home with a $700 a month payment and a gooseneck trailer that's paid off. Another question is can I run the hotshot business and my flatbed business under the same authority? Thanks again for your help.

 

I second what Flatbedcarrier said !!

 

You're welcome,

Absolutely, yes, you can run both trucks under the same MC/USDOT, you just list both trucks when applying for everything.

 

Oh ok sweet. Thank ya. How does it work if I want to add another truck later on?

 

It's very easy to do, Once the truck has gone through a inspection and it's ready to roll out, and the driver has been qualified, just call your insurance and add it on. Then update your MCS-150. You can update your MCS-150 through safersys.org .