New owner operator, Lease or Own authority?

Discussion in 'Ask An Owner Operator' started by jsingh, Dec 17, 2018.

  1. jsingh

    jsingh Bobtail Member

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    Ok.. Very new to trucking I've been working with a company for 6 months now and I feel the money I'm making is not enough for me to do this much longer. I have only 15k saved up to put down on a truck and I wanna know if it's even worth me getting my own authority or just lease with a company that will take me on?

    I know everyone says to wait a year or two but I don't think It's worth it for me to be working for a company making 5/6k a month. I want to be plan my own work schedule and have more freedom.

    all advice is appreciated.
     
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  3. Midwest Trucker

    Midwest Trucker Road Train Member

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    You are not even close to being prepared enough. You better save up another 15k at the very least and that’s if you put no money down on the tractor.

    You can spend 15k in a matter of a couple weeks. If you spend that on your tractor down payment then what are you going to run on?

    Be patient and save up to do it right. You will get swallowed up and spit out as you are now. Maybe wouldn’t even hit the road.
     
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  4. danny23tx

    danny23tx Road Train Member

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    Save up another 10k so you get off to a good start . Build up your credit as well and keep doing research , a lot of good stories and threads on this forum of ppl failing and succeeding. Good luck dont rush it .
     
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  5. SteerTire

    SteerTire Road Train Member

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    Like the others, I can’t stress it enough. You do not have the experience needed for this move.

    There is so much that you don’t understand about this industry yet. And you can’t learn this in 6-12 months.

    Do you understand freight lanes, freight peaks and valleys (trends)?

    Do you fully understand fuel cost and fuel taxes?

    Do you want a fixed per mile, or percentage pay? Do you actually know the difference between the two?

    If you’re making 5-6k a month as a company driver. It won’t kill you to wait a bit longer. That is not bad pay for most people. Especially at your level of experience.
     
  6. TruckRunner

    TruckRunner Heavy Load Member

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    Learn more on the company's dime and save more money. You wont believe this until you become an owner but right now you think being an owner op is the same like you are doing now except you make a truck payment and it's not. Now when I hit a big pothole or run over debris I get nervous that I messed up something that I have to pay big money to fix. My company truck could have exploded and I wouldn't have cared. Plus after all expenses you live about the same lifestyle as you do now unless you are getting crap pay. I made really good money as a company driver nearly six figures and now I'm making a killing as an owner op and my lifestyle is still the same except I have more responsibility now.
     
    Last edited: Dec 18, 2018
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  7. Ridgeline

    Ridgeline Road Train Member

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    Six months?

    Try a few years.
     
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  8. 6wheeler

    6wheeler Road Train Member

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    I did it for much less than 15k. 10 years OO. You'll need to learn how to fix everything on the truck and trailer your self.

    If you have enough money to buy a used truck and trailer, your ready.
     
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  9. Gdog66223

    Gdog66223 Road Train Member

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    Son I bought my first truck after 10 YEARS... you got a ways to go

    I've been in business now for over 1 year and I have already been audited on my Logs and done been hit with taxes for next year

    Let me ask you do you have any idea what cost per mile is??
    Do you know what IFTA taxes are??
    If you run your own authority Do you know what Drug/Alcohol program is??
    Do you know Audits mean??
    Do you have any idea what letters are suppose to be on the side of the door and cab??

    There is more to it than just going to buy the truck/trailer and slapping a name on it...
     
  10. Rideandrepair

    Rideandrepair Road Train Member

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    5-6 k mo is very good pay for only having 6 mo. Experience. The goal being to make money. I’d say you’re doing good right now. No doubt you can do it. You may be disappointed though once you figure out the bottom line isn’t much more on your own. After all is said and done.Add all the extra time and work involved. Very disappointed. Meanwhile learn more. Run Current Truck as if you owned it. That is use a hypothetical per mile rate minus fuel. Then minus Truck pymt Ins plate cost etc. Repairs/ maintenance is easily $1000 mo. Plus occasional major repairs. The risk is huge.The more you understand this the better you’ll do_Otherwise you can be blindsided with surprises (also known as bad luck) that are really just normal stuff.
     
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  11. Ridgeline

    Ridgeline Road Train Member

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    Yeah six, I it is great advice but two issues I see, there should be serious mechanical skills test as part of the cdl but also I see many people no matter what can't figure out a box end wrench or a screw driver.
     
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