My numbers as an O/O leased to Crete

Discussion in 'Ask An Owner Operator' started by jdrentzjr, Jan 3, 2009.

  1. CAM

    CAM Light Load Member

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    Hi jdrentzjr, I've been reading your posts the last several months, and you have been an inspiration to me and I'm sure others as well. I'm a newby just graduating this week. My plan is to drive for a few years, save my money, buy a good used tractor and hopefully lease on to a good company. I just wanted to let you know you have been an inspiration, and if possible please keep your monthly financials coming.
    Be Blessed :biggrin_25519:
     
    jdrentzjr Thanks this.
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  3. mogan2006

    mogan2006 Light Load Member

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    Nov 22, 2009
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    This is only about $160 a day!!! some who owns a truck should be making alot more than that. is this normal?
    Even your $74000 for 333 days out is only about $222 a day. I would think you would pull like $30,000 more for owning your own truck and being out 333 days
     
  4. stranger

    stranger Road Train Member

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    That's what most people think that don't own a truck. Some, a very few, people make those rates you mentioned. Many make the same, or slightly more, than a company driver. There are even more that make much less than a company driver, and many of those end up loosing everything they own.

    The above statement is based upon decent mileage pay to company drivers. With the new lower pay scales for companies, the actual amount of O/Os making the same, or slightly more may be up, but these same companies are paying O/Os 1999 rates also.
     
  5. jdrentzjr

    jdrentzjr Road Train Member

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    As a sole-proprietor it can be said that anything leftover after all expenses is in fact NET profit. That being said, lets look at some actual numbers based on my year end Profit/Loss statement.

    Annual Gross: $180,296 - $100,814 (variable/fixed expenses)= $79,482 - $11,500 (projected 2010 tax liability)= $67,982 - $57200 (my annual salary for 2010)= $10,782. This money could be concidered a TRUE net profit which will be reinvested in the purchase of newer equipment or the upkeep of current truck.

    Now for the company driver comparisson based on my annual miles of 142,026 x .47 (the highest possible pay rate for a company driver at Crete)= $66,752.22 gross - $6,700 (projected taxes on adjusted income)= $60,052 take home. This is $2852.22 more than me.
     
    Dryver Thanks this.
  6. Giorgio

    Giorgio Light Load Member

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    Mar 25, 2011
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    I understand the benefit of buying a new truck, depreciating it over 3-5 years and then trading it in and starting over continuing the process.

    But, I am not finding information about the pros and cons of a 4-5 year lease with payments deducted and then rolling into a new lease. Not referring to the overpriced lease purchases, but a standard lease to someone with good credit.

    Overall, as an O/O, which is better from a strictly business standpoint? Assuming every 5 years or so you would be trading up to a new truck purchase or rolling into a new lease.

    Any of you experienced drivers got some thoughts on the two options and whys and why nots?

    Thanks!
     
  7. jdrentzjr

    jdrentzjr Road Train Member

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    Income$64,499.14 on 45,915 milesFixed Costs ($8219)Variable Costs ($32,731) NET INCOME BEFORE TAX $22,93950. Estimated Taxes $4100

    The miles have been steady the first part of this year. Income has been good,BUT.........the expenses for repairs (clutch,front wheel seals and brakes, air valve control for turbo actuator, air compressor govner) have taken a chunk of the $$$. Oh well, 700k miles what ya expect? Not getting rich but I'm still rubbing two nickles together.
     
    Last edited: May 11, 2011
    Dryver, 123456 and Jarhed1964 Thank this.
  8. jdrentzjr

    jdrentzjr Road Train Member

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  9. TLeaHeart

    TLeaHeart Road Train Member

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    Thanks for sharing, gives me something to compare my numbers to. Different company, too.
     
  10. Jarhed1964

    Jarhed1964 Road Train Member

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    Still pretty good!

    Even with the same amount of maintenance expenses over the next three quarters, you are close to $90k for the year. And at least you know those items are fixed now. Kudos!
     
  11. BJMcKay

    BJMcKay Bobtail Member

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    95% of the time being an O/O is the same as buying a job. By definition a business is an entity that the owner can walk away from and return in the future and it is still running as well as profitable. There's not very many people in trucking that can say that they've accomplished this. Maybe the owners of Swift, Schnieder, etc. Other than them the rest of us bought jobs. There's nothing wrong with buying a job. It gives you choices that you'd otherwise not have. At least these days there is very little forced dispatch. In 1983 I was an O/O leased to KLM before it was KLLM pulling a reefer. They kept me out on the road away from home for 1 full year! This was extreme but still typical in those days. Not many choices to be made back then.
     
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