Looking to becoming a Owner Operator

Hello to all the fellow drivers out there. I'm looking to becoming an owner operator for the first time. I've been a truck driver for approx 6 years straight. I'm currently a driver for Coke Cola but all of my trucking experience is mostly doing local intermodal for J.B. Hunt out of Chicago. I'd like to finance a truck and wanted to know if anyone can tell me if I go back to JB Hunt, how do I get financed to get the truck. Is credit really an issue? My family is extremely important to me so I'm only looking to do local work. Any help or answers will be greatly appreciated.

 

I would not owner operate as a sole proprietorship. You being a family man, the libility is too great. They can take "everything" you have, for the rest of your life. Start an LLC (Limited Liability Company) and then start building your "company business" credit as L/O. Then you might find someone to finance a truck to you. Or...

$200 (extra as L/O) x 50 weeks = $10,000 x 5 years = $50,000 cash for truck + good business credit for maintenance, truck #2 financing and truck #3 financing; all running through a fleet management company. From there you can continue to drive or lease out truck #1 also then go be with the fam.

Oppss!!! Just told on myself.

 

If you are the driver of the truck a LLC will not protect your assets. You will be sued as an individual/driver of the truck.

The best way is to have the assets in some sort of trust or in your wife's name.

 

First....learn how to run a business. I mean learn. Then learn how trucking works. You might have been an excellent driver.....but running a trucking business is a whole other animal in itself. Leave the driving part out for one second and ask yourself the hard questions. Don't jazz yourself up and think it's that simple.

Second....do not do a lease purchse.....ever. I will make it simple....it's a scam. You are still a company driver.
Do the hard work and you will be sucessful.

 

I do appreciate all the feedback. I'm not a newbie to trucking but a newbie to taking that next step. Are there any successful lease purchase owners out there? If there are I'd like to hear them. And get advice on how they make it work for them.

 

I also will not do a lease purchase. You'd be locked into buying the truck. A "sales" contract.
A lease option is different. It's a walk away lease. Like renting with the "option" to buy it.
See: Quality Trucks (my choice), Google or start a thread asking for lease option companies.

From what I've learned (not done it yet); leasing a truck (L/O) enables a company driver to more
easially transition into O/O. Learn the business side, BUILD BUSINESS CREDIT and more,
before going all in with a lease purchase, financing or dropping 50K cash on a truck. Lets the
comapany driver get his/her feet wet before just diving in. Most O/O fail within the 1st year.
Better know what you're doing.

The following income and expense budget will help you to decide whether you should be able to
make it as a truck lease operator. While some carriers will pay for certain items, this gives you a
good idea of some of the expenses that you might incur. Company drivers don't deal with.

• Income
• linehaul revenue (mileage or percentage-based)
• fuel surcharges
• stop pay/unloading/etc.
• Fixed Expenses
• Tractor payment
• Trailer rental
• BT/DH Insurance
• Cargo Insurance
• Licensing
• Permits
• Accounting/administrative expenses
• Variable Expenses
• Truck fuel
• Reefer fuel (if refrigerated)
• Mileage fees
• Excess mileage fees
• Tires
• Repairs
• Maintenance
• Truck/trailer washes/trailer washouts
• Cellular services
• Tolls
• Workman’s compensation insurance
• Road, fuel, usage, mileage taxes
• Cargo claims
• Lumpers/gate fees
• Scale/weight tickets
• Fines
• Parking
• Legal fees
• Check cashing fees
• Qualcomm rental/usage fees

SOURCE: Truck Leasing 101: Complete Guide to Semi Truck Leasing
PLUS: Free Online Truck Business Education Videos

 

Nevermind

 

Just remember that no matter what, an llc or corp or what ever, your personal situation is always examined.

 

Thank you for the info.

 

Thought of you when I replied to this thread. More good info for business owners.
https://www.thetruckersreport.com/truckingindustryforum/threads/first-time-buyer.341240/