Need Advice on becoming an O/O

Marmonman, I have looked on truckers paper at the 2007 trucks..the only one I found was for 39,900 in NC that had 700,000 miles. The rest of them that were in the 500,000-550,000 was listed for 49,900 and that doesn't include interest that you pay when you have it financed, so even with excellent credit you are still going to pay 8,000 in interest.

 

The question that I asked is if there was any info on D&T or if you would lease on to a company as an owner operator with what they offer. So far I have gotten advice on Lease Purchasing, which is not want I wanted because I have sat down and already figured things out on my own. I have already compared apples to apples and oranges to oranges along with all of the other components involved. Please do give me credit...as no one is taking into consideration my experience and knowledge. I did owner operator statements along with lease purchase statements, and many other departments when I worked in the trucking business. I have already sat down and done my figuring...in my own spreadsheet with all of the variables needed to be an owner operator. The reason why I stated the reasons about filing bankruptcy is because I have seen many people get blamed for their financial troubles and wouldn't make it as an owner operator in this forum. I didn't need that from anyone.

I guess I am to take it that no owner operator leases on to a company? I know this isn't true, because I see O/O who lease on to companies all the time. What I asked was if the things that they were offering as an O/O would you consider leasing on with them? The reason why I ask is because I can't find anything on them in this forum...and there is no SCAM REPORTS about them on the internet either. Obviously they must not be a bad company if they aren't running adds everywhere in books trying to promote lease purchase...Bay and Bay yes they do advertise, but like I said I don't like their pay rates. I found D&T on one of the trucker hiring websites, and was needing more information on them.

 

Yes a L/P and O/O is different, but O/O who own their own trucks can lease on with a company that will pay for base plates, permits, insurance, and so forth. So what I have been trying to get answered is the things that D&T is offering would a O/O lease on with them. It is not forced dispatch and all drivers choose their own freight. I think at this point I have made my own conclusions as what to do, because I know our situation better then anyone.

I would love to go out and buy a truck and own it out right, but that isn't going to happen and that I can say for sure. Not with kids, medical bills, utilities, car payments, insurance, rent, and much more. So, I will keep doing my research and make my own decisions based on my own knowledge.

 

I do agree with you that there are alot of shady companies out there....and I could name quite a few. Those same companies have tons of SCAM reports, negative reviews on this website, and high turn over. These same companies have 500 + drivers driving for them, and they are just a number and not a person. Now I am not down playing Lone Mountain and yes they do leases, but I have looked at about every company offering lease purchase out there, and the payments are 600-800 a week, paid by the mile (.86-.93 per mile bases on the distance of miles) + the companies fuel surcharge rate which can be .36-.41 cents per mile. Now I now from experience that high payments and low pay = doomed from the beginning. In my experience we were a small company with 100-150 drivers and that included owner ops, lease purchase, and company drivers. We required a security deposit of $1200, maintenance escrow of a $1000 minimum, base plates, permits, and insurance which was about $4000 for the year and they were deducted from the settlements as well. Now most of them made anywhere of $2500-$3000 every 2 weeks which was take home after deductions. Some lease purchase drivers and owner ops went in the hole because of breakdowns, and they were trying to replenish the maintenance fund when the other deductions came through. So yes it is possible to have the miles coming in, but because of breakdowns or lack of revenue a person can go in the hole real quick regardless if they are an owner operator or a lease purchase. The other reason some of the drivers got in the hole was because they were taking cash advances to pay bills from being on the road, which would also be deducted in increments from their settlements. So a driver can loose their truck that they bought from a dealer just as well as l/p driver because they don't have the money to pay for it. There are many risks to becoming a owner op or l/P, it's knowing upfront what your revenue is due to you along with fuel surcharge before accepting the load, and deduct the amounts yourself to know what your true pay will be after deductions, but even then you have to build a cushion separately from the maintenance fund to handle the minor repairs so that you don't deplete the maintenance fund, and not take out cash advances to help pay those big repairs as well.

I looked at the company and it is a small company of 200 trailers and about 75-100 drivers, but I figured I would find information on this sight about them, and I can't. I have found info on a different D and T down in Texas, but it is not the same outfit because this one is in MN and does refrigerated loads and that company down there does sand and aggregate. I have read from other owner operators on this forum that it is better to deal with a company that is a l/p and o/o company only, because the company knows what it takes to make sure they succeed. I personally think it would be better as well.