New owner operator, Lease or Own authority?

Midwest Trucker · Dec 18, 2018

Dino soar said: ↑

I'm not saying that you will fail. I'm saying that the ODDS are that you will fail. The only way to put the odds in your favor is with plenty of experience and more money.

Honestly with only that amount of time under your belt, I don't know if an insurance company would even insure you for your own authority. And if they do it might be some crazy number like 30 or $40,000. I don't think there is anywhere that we lease you on with only 6 months either.

You state that you can't keep going on only making 5 and $6,000 a month. First of all that's pretty good money for Where You Are.

Second of all have you ever run a business? There are going to be plenty of times that you make zero. Zero as in nothing as in you worked and worked and worked and you had an expense to pay or maybe you didn't get paid at all and you got stuck, and for that week or that month you don't go out you don't party you don't live the Finer Things in life. And in fact the reality is that you just don't live the Finer Things at all because when you get a paycheck you can do whatever you want to do with it. When it's your own business that money has to be reinvested because you may not need it today but tomorrow you will, and you really don't know in the end what you are going to make except that if you buy a Corvette or you live like you are making 10 or $15,000 a month you most certainly will go broke. It takes time with your own business to get on your feet and be able to realize what money is actually yours. Just because money comes in does not mean that you are making money. In the meantime it's just a slippery slope that you need to keep every penny and you would be much more financially restrained than you are now. And when you figure what it actually costs you when you break down, when your insurance payments keep coming, and you have to pay for the repair, and pay for your house bills and whatever else, driving for someone else actually gives you more freedom in that way.

What I'm trying to say to you is as an employee you have a lot more freedom to spend your money. If money is your goal there are jobs out there driving that you can make $100,000 a year.

I believe anyone can do whatever they set out to do if they have a good enough plan and they are disciplined. But if right now you can't take it and you can't survive making 5 and $6,000 a month steadily, you'll never make it with the ups and downs of what this industry will do to you with your own truck, with very little to no money, and very little experience.

And also I think most owner operators take as small of a salary as they possibly can and the rest stays for whatever is needed.

if you are making 12 to $1,500 a week, and you think by buying a truck you're going to be taking two thousand and $2,500 a week for yourself no no no no no no no no.

If that were the case you wouldn't even make it a year.

Maybe I don't understand you and maybe you are willing to do all the sacrifices needed I don't know. But there is a reason why the failure rate in this industry is so outrageously high.
Best advice I can give you is read through the owner operator section how people started up and the problems encountered and read through the mechanics section with all the expenses and costs and downtime these lousy junkie trucks are costing people now.

Good luck.
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Well said. Especially the part about for a long time it’s hard to know what money is actually yours. Yes it’s in your account but your business should be treated almost like it’s own being. And it’s hungry for money 24/7. lol

jsingh · Dec 19, 2018

Firstly, I am so thankful for everyone who has commented on this thread! excellent points and I have learnt a hell of a lot just reading through for the past 20 minutes.

I guess everyone tells you to wait for a reason so I will hold off until atleast a year. I have run many business's before and I worked as an analyst for verizon before I started trucking. The reason I got into trucking was my dream to start a Transportation company one day so that is why I'm trying to run before I can walk. I know there are many underlying expenses, I've done my research throughly but Yes more money saved up can never be a bad thing!

jsingh · Dec 19, 2018

Gdog66223 said: ↑

I started my authority with $10,000 and thats down payment for insurance, truck, trailer, and all documents and plates
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That's crazy cheap, I'm curious what truck did you buy and what year trailer? I have money set aside for Paperwork, plates, insurance etc but I wanted to put 15k down on the truck. Also how long ago did you start trucking?

jsingh · Dec 19, 2018

Dino soar said: ↑

I'm not saying that you will fail. I'm saying that the ODDS are that you will fail. The only way to put the odds in your favor is with plenty of experience and more money.

Honestly with only that amount of time under your belt, I don't know if an insurance company would even insure you for your own authority. And if they do it might be some crazy number like 30 or $40,000. I don't think there is anywhere that we lease you on with only 6 months either.

You state that you can't keep going on only making 5 and $6,000 a month. First of all that's pretty good money for Where You Are.

Second of all have you ever run a business? There are going to be plenty of times that you make zero. Zero as in nothing as in you worked and worked and worked and you had an expense to pay or maybe you didn't get paid at all and you got stuck, and for that week or that month you don't go out you don't party you don't live the Finer Things in life. And in fact the reality is that you just don't live the Finer Things at all because when you get a paycheck you can do whatever you want to do with it. When it's your own business that money has to be reinvested because you may not need it today but tomorrow you will, and you really don't know in the end what you are going to make except that if you buy a Corvette or you live like you are making 10 or $15,000 a month you most certainly will go broke. It takes time with your own business to get on your feet and be able to realize what money is actually yours. Just because money comes in does not mean that you are making money. In the meantime it's just a slippery slope that you need to keep every penny and you would be much more financially restrained than you are now. And when you figure what it actually costs you when you break down, when your insurance payments keep coming, and you have to pay for the repair, and pay for your house bills and whatever else, driving for someone else actually gives you more freedom in that way.

What I'm trying to say to you is as an employee you have a lot more freedom to spend your money. If money is your goal there are jobs out there driving that you can make $100,000 a year.

I believe anyone can do whatever they set out to do if they have a good enough plan and they are disciplined. But if right now you can't take it and you can't survive making 5 and $6,000 a month steadily, you'll never make it with the ups and downs of what this industry will do to you with your own truck, with very little to no money, and very little experience.

And also I think most owner operators take as small of a salary as they possibly can and the rest stays for whatever is needed.

if you are making 12 to $1,500 a week, and you think by buying a truck you're going to be taking two thousand and $2,500 a week for yourself no no no no no no no no.

If that were the case you wouldn't even make it a year.

Maybe I don't understand you and maybe you are willing to do all the sacrifices needed I don't know. But there is a reason why the failure rate in this industry is so outrageously high.
Best advice I can give you is read through the owner operator section how people started up and the problems encountered and read through the mechanics section with all the expenses and costs and downtime these lousy junkie trucks are costing people now.

Good luck.
Click to expand...

Thank you so much for taking the time out and replying, I have experience within business and I've run many before I got into trucking. That said as I posted earlier I will wait atleast a year to start. My main objective is to own multiple trucks and have my own company and that is the reason I started trucking! I definitely agree there is more freedom with a paycheque sometimes but I am willing to sacrifice my time and pleasures to create a succesful business. I appreciate the advice, One thing I'd like to ask you is something you mentioned about repairs and lousy trucks.. Would you recommend buying a brand new truck over used?

Gdog66223 · Dec 19, 2018

jsingh said: ↑

That's crazy cheap, I'm curious what truck did you buy and what year trailer? I have money set aside for Paperwork, plates, insurance etc but I wanted to put 15k down on the truck. Also how long ago did you start trucking?
Click to expand...

Ive been trucking now for 11 years... but to get whole process started without fuel here is a short list of my cost to start it up
2012 Freightliner Cascadia down payment- $4500
2006 53' Dry Van Air Ride Great Dane- $1000 down payment
Purchased plates for 1 year- $1500
Insurance down payment- $2400
Authority- $300
Drug/Acohol- $100/$10 per month
IFTA- $10 for stickers to start
NY HUT- $125.00
The rest of the documents are BOC3, KYU #, UCR they are not too expensive...

jsingh · Dec 19, 2018

Gdog66223 said: ↑

Ive been trucking now for 11 years... but to get whole process started without fuel here is a short list of my cost to start it up
2012 Freightliner Cascadia down payment- $4500
2006 53' Dry Van Air Ride Great Dane- $1000 down payment
Purchased plates for 1 year- $1500
Insurance down payment- $2400
Authority- $300
Drug/Acohol- $100/$10 per month
IFTA- $10 for stickers to start
NY HUT- $125.00
The rest of the documents are BOC3, KYU #, UCR they are not too expensive...
Click to expand...

wow man. You did well, Good start. I hope business is well. How are you liking the truck? how many miles did it have on it when purchased and what were your major repairs throughout the years?

Gdog66223 · Dec 19, 2018

jsingh said: ↑

wow man. You did well, Good start. I hope business is well. How are you liking the truck? how many miles did it have on it when purchased and what were your major repairs throughout the years?
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Oh I was trucking for 10 years and then I went into business for myself so I've been in business now for over a year... What saved me all the cost is my trucking experience... My insurance lady gave me a discount for having over 10 years experience (I can give you the name of the lady and insurance company) No tickets/accidents or criminal record also helps. I had a string of tickets in 2013, but they fell off and she never mentioned them...

Business is great but that truck is gone.. Motor messed up so I got another one... I had major repairs on DEF, DPF.. like over $10,000... but now I got a 2007 Kenworth no def... truck runs solid.. That cascadia had 732,000 miles on it...

jsingh · Dec 19, 2018

Gdog66223 said: ↑

Oh I was trucking for 10 years and then I went into business for myself so I've been in business now for over a year... What saved me all the cost is my trucking experience... My insurance lady gave me a discount for having over 10 years experience (I can give you the name of the lady and insurance company)

Business is great but that truck is gone.. Motor messed up so I got another one... I had major repairs on DEF, DPF.. like over $10,000... but now I got a 2007 Kenworth no def... truck runs solid.. That cascadia had 732,000 miles on it...
Click to expand...

I'm sorry to hear you had those problems but you've moved onto better things I see! DEF free is the way, I've looked at a bunch of new trucks 2015/2016 and after 400k miles they're having DEF problems costing up to 25k! which is insane. What sort of average MPG are you seeing on the 2007 kenworth?
Also can you message me the insurance Lady's details I will give it a shot once I am ready to start this endeavour. It won't let me message you because I don't have enough posts.

Gdog66223 · Dec 19, 2018

jsingh said: ↑

I'm sorry to hear you had those problems but you've moved onto better things I see! DEF free is the way, I've looked at a bunch of new trucks 2015/2016 and after 400k miles they're having DEF problems costing up to 25k! which is insane. What sort of average MPG are you seeing on the 2007 kenworth?
Also can you message me the insurance Lady's details I will give it a shot once I am ready to start this endeavour. It won't let me message you because I don't have enough posts.
Click to expand...

Yea sure I'll give you the info... I havent had time to break in the kenworth yet to really calculate mpg. I've only had it for a few weeks now.

Kshaw0960 · Dec 19, 2018

Here’s my ‘been there done that’ 2 cents.

I do believe you should have a few years of experience in driving though because 1 accident can lead to bankruptcy.

That said, having $30k minimum is a joke. Find a small company paying percentage. Lease on with them to learn. Talk to the drivers if you can and go for it.

My first truck I paid $16k for and outside of tires and oil changes I’ve spent maybe $4k in repairs over 3 years (AC, batteries, hole in exhaust, air leak). Don’t be afraid of older equipment. Also find a good mechanic, I never go to a shop he comes to me.

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