LEASE vs OWNER operator?

You do know most company drivers average that weekly pay? And get tax money back, and do not pay in to taxes. Tell me again how this is so freaking great?

 

Tell me how a person netting $1000-$2500/wk gets out of paying any taxes.

 

How long is the lease for? What if you get sick and can't drive? Is the idea for everyone who leases to end up owning the truck outright at the end of the lease? Is it an internal load board exclusive to Schneider? How does a person find out in advance if a company has a good ride board before they hire on for that kind of setup? Is it safe to say that only a mega-carrier is going to have enough options on their load board for you to consistently pick and choose runs in close proximity? Is it first come first serve, competing with other drivers looking for the same good loads? How far in advance of making your next delivery can you claim loads off the board? Do they review and evaluate your request each time to decide if there's a sufficient cushion between your current ETA and the pick up time of the next load? Is this enough questions? If not, I can think of more rather easily.

 

Assuming the average company driver weekly is $1000 ballpark. W2 employer takes taxes out. Than the IRS pays back most of that plus certain credits. 1099 pay you are taxed near 25% minus deductions , but you will still owe something. I will guarantee it. Yet you think leasing a truck you will never own is great.

 

First, I know EXACTLY how much my customers are getting charged for my services, because I fill out a waybill with my company's logo on it. That's how much they get charged. In some cases I negotiate the rate, when I use load boards to find a load. I tell dispatch how much the rate is and they plug in the numbers. I ALWAYS know what rate I am hauling.

I have my company do my own payroll for me. They take care of the 19% payroll taxes and I get two checks every week. One is my net payroll check and the other is my owner's settlement check.

I pay myself 25% of whatever the truck earned for gross revenue. My settlement check deducts the 19% payroll taxes, fuel, insurance, etc. From my settlement check I need to set aside for business taxes and maintenance.

So I if I bought another truck I could hire a driver that will make at least $1600 per week gross pay, and still make about $800 to $1000 net profit on that truck per week. THAT'S a business. Those that THINK they have a business by buying a job are kidding themselves.

 

Ok thanks. I need to bookmark all that so I can easily find and refer to it later if I ever turn out to be worth a flip.

My mistake - I thought you were already doing something like that. I'd say then the more (trucks) the merrier. Just like McDonalds. I guess that's why the megas have thousands of them. Great until you owe too much money and the economy turns, and it WILL turn. With a country $21 trillion in debt and counting and record deficits every month, it has to, eventually. The free lunch won't last forever, and the next Democrat who beats Trump for re-election will probably undue all the tariffs, if you're even in the camp that believes tariffs help rather than hurt.
Here's another link, hot off the presses...
Federal budget deficit increases 79% in July

 

I sometimes clear $2000 a day, depends on how desperate the broker is. On a slow day after fuel and truck payment per day I clear $1000, so do your homework before you lease to a company.

 

We have a small O/O outfit, two of the drivers bought a truck or two and put drivers in them. One of those drivers worked out a lease purchase with one of these truck owners. I don't know the details, but the driver bought the truck in less than two years and leased it back on with us. He is still here driving that truck. As far as any benefits in regards to staying, he knows what we pay, switching over was painless in regards to pay, and he does not have to play the grass is greener routine.

As far as a mega carrier, no way in heck would I lease a truck on there. A dollar a mile freight is not enough to survive on out here, especially when most of us know what this freight is really paying.