a little help?

I'd go company, and get some experience in the industry first. Then, look into buying a truck.

Also, take some business management courses. You'll need the business mindset as an O/O.

 

Yep...what he said.

 

If driving on someone else's dime is going to break you, since you would be getting paid during that time, then you need more financial stability to be a successful o/o.

It's cut-throat out there right now.

 

GOOD MOURNING:now first od all i would never dicsourage anyone from becomming an owner operator ive been doing it for almost 50 years and would not do anything else.
the biggest problem is that most that get into the business have no idea what is envolved and that can cost you.
can you do it , hell yes you can but before you get a truck you need to no what to do with it its not like trying for a job , much more to it.
now im assuming that your going to try and finance your truck, lots of luck with that, the banks have efectivly locked up financing real hard to get credit if you can at all.
now you mentioned that you have found in house financing in fl , now i live in orlando, and i no most of the thievs here not saying that you have found one of thoses but i am saying be real carefull it can cost you a lot .
now at this time its a buyers market they have trucks stacked up all over the country,repos,guys getting out of the business, and a lot that just went broke so you can find some good deals BUT be carefull who you deal with times are hard wright now and it brings out the worst in a lot of people.
watch your overhead that will get you quicker then anything else you got to have room to operate, when your just starting out a payment of 1500.
00 for just the tractor is to much, freight rates are at an all time low and will be for awhile so go slow .there is plenty of freight but it is cheap for the most part and its going to be that way for awhile.
dont buy more then you can afford to pay for, a new shiney pete looks awful god but what good is it if you can only look good for 60 days then the finance company takes it away from you and that my friend will break your heart.
before you buy your tracter have a job for it before you sign the papers once it is yours you dont have time to play around you got to go.
another thing to remember is if your going to truck you cant be home every week you got to turn and burn you got to run where the freight takes you and that gets a lot of people but thats the way it is if you want to be in the trucking business.
now this is just a small part part of it think it thru before you buy and dont buy the hype that you have to have a whole lot of expeirence befor you can be an owner operator hell when i bought my first one i didnt even have a drivers license, wasent old enough to have one and there was no such thing as a cdl, i wanted to drive and no one would give me a job because i was to young and no licens so i got pissed and bought my own been out herfe ever sense, but its a lot different today you can still do it just be carefull and plan your moves ahead of time if you do that you will do just fine.
the best to you see you on the big road.----southernpride

 

Try getting some insurance quotes, i think your going to find that insurance for some one with no experience is going to be expensive, just like adding adding your kid who just turned 16 to your auto policy.

 

Hey there Pilot....

I am one of those people that keeps a positive attitude about just about EVERYTHING I get into. I read your post on here and I had mixed feelings... excitement for your upcoming days, and concern for your plan. I can promise you, I speak from recent experience. And although I am not bragging, I am not the dullest knife in the drawer when it comes to business and finances. Several years ago, I took over a business, made it VERY profitable in a short period of time, took my "rewards", and moved on.

Southern Pride has given you some great info. And you should heed some of his warnings. Crash and Nophix are also quite right. You need to learn on someone else's dime. No offense, but if you haven't spent time in the industry, you don't have a clue about the idiosyncracies of the business. Things like tolls, IFTA fees, scales, fuel prices, and so much more. Then you need to look at how are you going to get paid. Generally, you are going to have a hard time finding a company that is going to bring you on board with zero experience. And not because you can't drive a truck or you are not an intelligent individual, but you have no track record. Sure, it is your truck and your insurance, but it is THEIR load, and if you "fail", the burden of failure is placed on your employer by the shipper or receiver, not on you. So you really need to

A. develop a track record and a history of proven performance
B. create a "portfolio" that will make you attractive to quality, reliable companies.

Brokers are pretty much the same way unless they are fly-by-night "bedroom brokers". And you need to watch out for them because it may take you many, many weeks or even MONTHS to get your money. Another point.... there are companies out there that will buy your receivables in order to provide you with working capital. Be careful with them too. Typically, if you sell your receivables, the longer it takes to collect, the less the financer applies to the debt, YES, DEBT, and you could end up being on the hook to them too.

Now, as far as in-house financing goes.... you need to look VERY CLOSELY at this, because there are but a few that are fair deals. Almost 100% of the companies willing to get you financed with less than 12 months experience are running a scam on your deal and you will most likely be signing a piece of paper that contains verbage designed to get your money for several months, then set you up to lose the truck and even further destroy your credit. And the finance company wins... they get your money, they get the truck back, and they do it again. That is how they make their money.

To begin with, you need to make sure that there are no pre-payment penalties. You also need to see if you can pay it off early. Sound crazy? Nope. There are a lot of them out there that won't let you do it. Also there are some out there that, let's say your payment is due on the 15th, and it is the 1st or 2nd of the month and you decide to make a payment early. If your payment is not due yet, and you make a payment, they will take the payment and they will apply it to the balance, but you will still be responsible for paying your payment by the 15th. It is very prevalent out there, so look out.

Another thing to look out for is find out whether it is a lease with a mileage payoff or a "regular" financing deal. Make sure that your name is on the title, and that if something happens "along the way" (say you get injured and can't drive anymore), you have the ability to sell the truck. Some places won't allow you to do this, and you (or your heirs) could get stuck with a 1200$ / month payment.

The next thing that is going to run through your mind is to hook up with a company, lease a truck through them, and "start your own business". If you do this, and you succeed, you are one of the 3-5 % of people that actually make money doing it. I have run a bunch of spreadsheets and financial models on this concept. Yes, it can be done, but in order to be successful, you need to know how the company system works, and you need to have a GREAT relationship with dispatch, because without that, you won't get the miles you need to pull it off. Every company does it differently and you need to have mastered the learning curve before obligating yourself.

Companies will talk it up, stir you into a frenzy, and you sign it before you check it out. DON'T DO THIS!!!! Company leases are designed to help support the bottom line of the company. And there will be many weeks you could possibly have a negative balance on your check. THEN, you have to make that up on the next check before any money goes into your pocket.

If you were my brother or a close friend, I would really get in your face and implore you to wait. You don't have a clue (sorry, I am not trying to insult you) about what you are trying to do. Especially if you don't even have the road miles. There is SO much more to it that you might think. Plus, you might not like it once you get started. It is more than a job.... it is a lifestyle. So without sounding discouraging, you need to make sure this is for you before you lock yourself into an agreement. It is easy to get excited and say "I can do this.... I'll buy a truck..... I'll be the one to make a difference... I know what I am doing..... I have a great backup plan....." I know this because I went through the same thing. Thank GOD I had made friends with a few drivers that were nurturing, but experienced and talked me out of it.

I still drive. I get about 3000-3300 miles each week. And I love it. I get home, and I can't wait to go back out. I have a very supportive spouse who has absolutely no problem with me doing this. I have the perfect situation. And eventually I will be getting my own truck. But I am being patient and waiting / learning on my company's dime. And you should too. If not, there is an overwhelming chance that you will be setting yourself up for failure. Personally, I would hate to see that happen.

If you need more info about this.... let me know and I will help anyway I can. But really... don't buy a truck yet

Sorry for being so long winded, but you need to know.

ARF

 

Jeeze scooterdawg, what a well written response. You need to post more often...
Well Done..........