Getting your Own Authority,or Leasing on with Company ? Just The Facts !

I purchased my truck in Feb last year

I obtained my authority in May

I am not saying I have all the answers .... And I am not trying to say this is easy ... But everybody likes to say Landstar is "just like running your own authority" ????? Okay so what is the major advantage that I am missing ... A tire discount? A fuel discount? Okay if my deal falls off its back to the load board so yeah I fly on my own, so then I start beating at doors again until I find something else...I just feel sometimes its more difficult to be leased to a mega carrier ... Competition, favortism, shady agents ... I personally don't have the tempermant to do this as when I get frustrated "shove it up you ###" sometimes tumbles out of my mouth ... And I realize I am to old to react this why but hey ... thats why I operate a commercial vehicle an am not a have to deal with the people person

 

Independents rarely receive much in the way of fuel discounts.
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I read in Comdata's Brouchue they give Discounts to Independents,just Like the Big carriers.

 

It boils down to what you want to do. Look at both sides of the issue and act accordingly.
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Well it's like the ' Old saying ' goes : Risk v.s. Reward

Reading these Forum Boards for the Last 8 Years,I've come to the Conclusion :

(a) Have at Least $ 10,000 saved up !....Before you even THINK about going alone !
(b) Have a Big Down Payment on a Good Used Truck ( 2007 or Newer ).
(c)Use as Many Load Boards as you can afford.
(d)Never Lease with a Company.....Because Human Nature being what IT IS,You don't know If they are Being HONEST with you !
That Is why I rather Choose to Go witha Reputable factoring Comapany.( Especially now a Days with ' Trans Flo '....They can get the Paperwork Instantaniously ! ).

 

Circumstances dictate procedure.

 

Risk is another reason that you should consider when thinking about becoming an owner operator versus getting your authority. In some respects, you will assume greater risk by going it alone. If a broker or shipper fails to pay as agreed, it will be up to you to collect the money. Leasing to a carrier, thy assume all the risks of collection. If you have a major breakdown, you are completely on your own if you run your authority. Some carriers may assist you in getting repairs done and back on the road, if you have been with them for awhile. Leasing could help the owner operator get national discounts on tires, repairs, fuel, etc., Few discounts are available for most independents. Most carriers offer some dispatching to those leased to them. As an independent, you will need to find your own loads or pay a dispatch service to do the work for you.

Some people are more comfortable being on their own and others need the association with a major carrier. I don't think that one way is best for everyone. I consider it less of a risk to be on my own than leasing to a carrier. I set the policies and goals for my company. When you lease, you follow the carrier's policies and have no input. There are some who consider it less of a risk to lease to another carrier. You need to start with what best suits your goals and temperament.

 

Something else to consider is location. For example, the OP is from S. Florida, the worst place for an independent that pulls anything but a reefer to live. Being leased to a carrier with freight out of there could make a HUGE difference, where if he was based in NW Indiana it wouldn't matter nearly as much. I know I see freight rates out of FL now that I never imagined with my authority. On the other hand, if the Miami driver had some steady direct freight lined up coming out of FL, getting his authority would be a no-brainer. This is what I did until the company I hauled out of got bought out and I couldn't find a steady replacement.

 

Taxes are a HUGE investment, how does one make much money after all the fuel taxes, state and unemployment taxes and insurance are all taken out?

 

Ummmmmm....Let's see ..... I think I will take "Don't Haul Cheap Freight" for $500 Alex

 

$900 is cheap freight??

 

I heard ooida has a class to help you with your own authority and what dot wants for records