I have a question. Once I obtain my CDL I am looking to become a O/O. I know most of you are thinking WOW not even a trucker yet and thinks he can be a O/O. I have ran a very sucessful business for 8yrs and know what it takes.
My question, thinking ahead, is how many of you carry a credit card to pay for fuel only and settle it each week or end of month to avoid finance charge? Good or Bad idea or any other suggestions?
Thanks in advance
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You're right, that's what we're thinking. You can't lease a truck on unless you have the same experience a driver needs. Same goes for a lease/purchase if you are desperate enough to even consider one.
Regardless of how much business experience you have, it will be very risky to start as an owner/operator. Your only choice, with no experience, will be to get your authority and become a carrier. For this you will need about $18,000 to $25,000 to start.
With all due respect, I have to be honest with you. The fact that you are talking about being an owner/operator and your biggest question is about using a credit card for fuel is not very promising for your future. There is so much more to trucking than driving.
There are so many things you need to be asking about. But no you don't want to use a credit card because it costs more to fuel with a credit card. If you pay 2% to use the credit card it will cost you about $115 - $144 extra a month. Four or five bad choices like this and a third to half of your profit is gone. Then there is the fact that you will spend $5,700 - $7,200 per month for fuel. Some brokers may take more than a month to pay.
I don't want to rain on your parade but let me share my thoughts. I have owned two trucks over the years. I'm about to go again. With my experience and $17,000 cash, I figure I have about an 80% chance of success. Without the cash using credit, I would say my chances go to 50%. If I started with credit and no experience I would give myself >20% chance of success. Ask yourself what you are willing to lose? Will you give up you car to make the truck payments? Your house? Your family?
If you want to go this route read all these threads:
Then read all the docked threads in the "Ask An Owner Operator" section.
Please dont get me wrong the O/O thing would be a while down the road. But I feel if I decide to go that route its going to take alot of pre-planning to be prepared for it...
I'm just the kinda guy that if a thought jumps in my head I ask the question...
Just in case you haven't seen it, I'll share this advice too.
Here's my standard copy and paste advice. Remember this information reflects my opinions based on the facts and information that I have. I hope you find something of value in it. It is aimed toward helping new drivers avoid common misconceptions, disappointments and pitfalls within the industry. The most important thing you can do is search and read. Find out everything you can about becoming a professional driver and what will be expected of you. There is so much more to this profession than just driving. You will be expected to know and understand the laws and regulations that affect the industry. Armed with facts, form some realistic expectations. This profession is not for the "faint of heart". It will be a good fit for some and not for others. This profession is not what you think it is.
You need to research and find out what the important questions are. You can make an above average living but you will make sacrifices that other jobs don't require. Do a lot of reading in the "Good & Bad Trucking Companies" section of the TTR Forum and get an idea of what company you want to work for and what type of trailer you want to pull. Don't just go to school and then try to figure out where to go to work. Set some long-term goals and figure out what steps you must take to reach them. Becoming a "professional driver" should be a step you use to reach your long-term goals, not a long-term goal.
YOUR MVR, CRIMINAL & JOB HISTORY
You must research these subjects to determine how they will affect you and your personal history and records. You would be absolutely amazed at how often schools will train you when you may not be employable as a professional driver. Their objective is to get you a CDL and them your cash. Job placement is second to this.
As a professional driver your MVR will be second in importance only to your health, protect your CDL. All companies look at your MVR and have limitations on how many and what type of violations you can have. They also have a limit on how many accidents you can have. Most set a limit that is some combination of tickets and accidents over a three or five year period. Be aware that speeding in excess of 15 MPH over the posted speed limit is considered reckless driving in our industry. In addition, many violations, such as improper passing, will be recorded on your MVR as reckless or careless driving. Reckless or careless driving and truck rollover accidents can be a career ender.
Criminal convictions can present a problem to entry into the industry. Each company has their own policies on this. Treatment of misdemeanors varies widely among companies. Most companies want either three, five, seven or ten years since a felony conviction. I have read driver requirements on some company websites that say no felony or misdemeanor convictions ever. Certain convictions such as aggravated and sexual offenses, alcohol, drugs and theft are also very hard to overcome. Alcohol and drug offenses can be a career ender.
I have personally spoken with a company that will not take you if you have more than eight months unemployment in the last thirty-six months. That is pretty tough in the current job market. I have also spoken with a company that responded to a longer term of unemployment with, "You were a stay at home dad, right?" You will have to account for all your employers for the past three years and provide detailed contact information. Your job history is important and you must explain and document any gaps. A less than ideal job history can limit your opportunities.
Now don't let any of this stop you from pursuing your goals. Just be aware of the drawbacks before investing your time or money and be realistic in the expectations you have for your situation. Don't go through training and find out you can't get a job. I have read success stories, on this forum, from drivers who had only a slim chance of finding a job.
RECRUITING & TRAINING
Just be aware that most school and trucking company recruiters are subject to deceive you or lie to you. They will let you talk about what you want and then tell you what you want to hear; based on what you have told them you wanted. Trucking is about moving freight to make money for the company. Your home time, family, paycheck and everything else comes second to this.
Each person's financial situation is different. Don't take training from a company if you can afford to pay for it, get financial aid or even finance your training. If you do take company furnished or sponsored training, you will be contractually obligated to this company for up to year. If you leave, without fulfilling your contract, they will trash your DAC and credit reports and turn the balance over for collection. Many times you can find less expensive, and sometimes higher quality, training at community colleges or technical schools. Sometimes you may be able to get assistance with training costs. Check with the schools and your local employment office for possible financial aid.
Regardless of your driving choice, after school you will go through company training. This can be a few weeks to a few months. Often drivers wait a week or two for their trainer to pick them up. Recently companies seem to be banking drivers in anticipation of needing replacements and trainer wait times may be increasing. During the first phase of training pay is often $400 a week and the second phase is usually $500 - $550 a week. Some companies pay less and some pay a little more. Some companies are poor at training and just run you team with your trainer. Check into this. Your trainer should be in the seat beside you, training you, not sleeping so he can drive the next shift.
You don't want to wait around too long after training or you'll have trouble finding a job. If you get out of trucking before you have a year in, when you try to make a comeback later you will find they want you to start over.
THE JOB & PAY
Driving a truck is not like any other job. Local driving can be backbreaking delivery work 10 - 12 hours a day, 6 days a week. Often you unload dozens of times a day or you are a salesman. You may park quite a distance away and make multiple trips with a hand truck to get your deliveries in and up steps. In my area most dump truck jobs pay no more than a good factory job. Regional driving is lots of loading and unloading time, fewer miles than OTR but the work is not as hard as local. The repeated waiting while loading and unloading will wear on you, push your HOS limits and reduce the miles you can run. Typical OTR driving is out for 3 - 5 weeks with 3 - 4 days home. It entails less manual labor, usually less loading/unloading and more miles. Many OTR drivers have taken local jobs to be home more and gone back to OTR so they wouldn't be too tired to do anything when they were home.
You'll probably have to pay your dues before you get the gravy job. Many local driving jobs want OTR experience while local experience is seldom useful for OTR jobs. Weekends off, if you are lucky enough to get something like that starting out, may be home Thursday afternoon and leave Saturday morning or home Friday night and leave Sunday afternoon. Loads often deliver early Monday and you leave in time to get them there. Often your home time will be in the middle of the week. Some jobs do get you home for 36 - 48 hours on the weekend. Your location will play a big part in all of this.
New OTR driver starting pay is usually about $30,000 - $40,000 annually. It will often be less if you choose regional because you will drive fewer miles. Don't use high weekly mileage numbers to calculate your potential pay since this will often lead to disappointment. Obviously you will know your pay per mile so many companies will exaggerate your weekly mileage to make their job position seem more appealing. I would use 2300 - 2800 as a weekly mileage figure. If loads are slow or the economy is soft, you often find yourself begging for 2000 miles a week. This will vary widely and some companies may run you 3000+ miles a week.
Above all be aware that time equals miles and miles equal pay. If you spend a lot of time at home or loading and unloading your pay will suffer. Some companies will utilize your hours well; keep you busy and you won't require a 34-hour reset. Some companies will use your hours poorly, reset you in Nowhere, USA every weekend and never get you any miles. Most OTR companies don't put any value on local experience so it is better for your career to drive OTR first, if you will ever want that option, or to get that good local job.
Don't forget to factor in the cost of living while on the road. If you get a day off for each week out, that will be about 319 days (45.6 weeks) a year on the road. Spending $4 for breakfast, $8 for lunch and $12 for supper will cost $24 per day. At this rate, you will spend $7,656 per year on meals. You can easily spend $10,000 a year when you add laundry, showers and other items that maintaining a home away from home entails. IMHO, A frugal person can probably get by on $4,500 - $6,000 per year.
All the big companies have websites and online applications. Isn't this great and convenient? IMHO, no it isn't. While it is a fact that most of them will require you to fill out their online application at some point, I would not depend on this to get hired. I have read posts from drivers who were approved but their application got lost in the system. They made a phone call and were in orientation a few days later.
I personally believe, and know when I have been in a position where I hired; someone that proves they want that job is more desirable. Visit the company you want to work for if possible. If not then call them. Then fill out the online application. If you make an impression, someone will be waiting for your application to push it through the process. If they make you do the online application first, still follow up in-person or by phone. Make them want to hire you. You need to do something or be someone who stands out from the crowd. Do regular follow-ups by phone on the jobs you really want.
Too many new drivers just settle for a job from the list the school has. There are many more job options available. The school works in volume and looks the best when it says 90% of our graduates find employment. So obviously they get better results from companies that hire in higher numbers. These companies can hire all their graduates with the least effort on the school's part. If you have anything in your history that makes you less desirable than your competing job applicants, a phone or in-person interview will often bring the best or only results.
Now I'll share some suggestions and some thoughts on common misconceptions. If you have no winter driving experience or are apprehensive about winter driving in a truck, consider attending school in early spring. This will give you several months to acclimate yourself to your new driving career before you have to tackle the chore of winter driving. It also will get you started in the busier time of year when more miles are usually available to make you more money.
Often new drivers believe that a diving job will allow them to see the sites of our great country. While there will be some opportunities to do things, you will seldom pick the location. Some resourceful drivers manage to find things to do and even manage to get loads going somewhere they want to sightsee. For the most part, it is more likely, you'll see all the sites you can from the truck windshield on the Interstate or parked at the truck stop. Company policy varies with respect to out of route miles and use of their tractors for personal conveyance. Know your company's policy on these matters.
Educate yourself on idling laws and your company's policy on engine idling. Find out if they have APUs (Auxiliary Power Units). You need an idling engine or an APU to keep you warm or cool during you off-duty/sleeper berth time. Find out what your company's policy is on inverters. You will need one for your computer or other electrical devices. Usually you will be limited to what you can plug into a cigar lighter/outlet.
After researching come up with a short list of companies that meet your needs and requirements. Don't forget to consider and compare pay rate, potential miles, health insurance, retirement plan, idle policy, APU availability, layover pay, detention pay, rider policy, pet policy, Prepass, Pikepass and toll & scale reimbursement policy. I'm sure there are more and not all items apply to every company.
Some companies pay a percentage of the load revenue instead of per mile. Some of these treat you as an employee and some treat you as an independent contractor. As an independent contractor taxes won't be withheld and you will be required to make quarterly payments for your income tax and social security. In addition, an independent contractor usually won't have health insurance or workmen's compensation. While percentage pay isn't inherently bad it is packed with pitfalls for a new driver. My advice is stay away until you understand the industry better. If you go this route, now or later, do lots of research.
Just say no to lease purchases. Don't let your company persuade you to sign a lease purchase. While not all are a contract with the devil, all are designed so that you make the company as much or more money than you did as a driver. Often you are nothing more than a company driver with operating costs. Your personal needs, income and home time will come second to their loads and profit. Just like company training you have obligated yourself to comply with a contract that has dozens of pages insuring that you get the short straw. My advice is stay away until you understand the industry better, if not forever. If you go this route, now or later, do lots of research.
While it is impossible to cover everything you need to know, this should at least make you realize there is much to research and consider before you take a leap into the deep end. Trucking is much like any trade or profession that offers a challenge, an advancement path and great pay. You can only learn the important things through experience on the job. Always protect your CDL; it is your means of making a living. Do not let anyone pressure you into making bad decisions. Be ever mindful of the responsibility you bear and the liability that mistakes can cost you and your company. Never operate a commercial vehicle above your skill or comfort level. Both will increase with experience.
There isn't a single dedicated professional driver that won't tell you we need more professional drivers in this profession. Make a commitment to yourself right now to be more than a steering wheel holder. Take pride in what you do and others will see this. You will find it will make you feel good about yourself and pave the way to the jobs others only dream of. Good luck and go make us proud.
This is great. Don't misunderstand me. I'm not all doom and gloom, I just want to be sure that those starting out realize just how tough and unforgiving this business can be. I lost everything the first time around, you can read about it in that first thread I posted for you.
If I could make a living at it I would make a career of mentoring new owner/operators. I would like to see anyone that has the drive to go after their dream be successful. IMHO, that is what makes our country so great.
While it isn't the best thing to do, if you are short on cash starting out you can factor your invoices. Search the site for "factor/s" and "factoring". It has the advantage of them approving the brokers credit. In addition, non-recourse will usually guarantee payment. You can also use the quick pay option at some brokers. These all have a cost but I would buy fuel with cash or get a fuel card. Some brokers offer fuel cards.
If you will read all those threads you will learn most of what you can learn without going out and getting the rest of the experience on the job.
very familiar with factoring. I used a company out of Texas for 2yrs with my security company, worked out great and never had a issue with them. Was factoring around 25k/month +/-
Maybe I jumped ahead by asking questions in this part of the forum at this point. But I have 8hrs to kill a night and the question just popped up so I thought why not..
thanks for all responses negative or positive they are all useful
No I don't think you can start too soon, in the wrong spot or ask a bad question. Now that everyone knows you aren't jumping into the deep end eyes wide shut, you won't have so much static hopefully.
You sound like you do have some good business experience. Most don't know what factoring is. I too have experienced it in other businesses. On one hand I agree with the many on this forum that will say you don't have enough capital if you have to factor. On the other hand I disagree because they have no idea how widespread it is in many businesses today. You need to choose one that doesn't require you to factor everything, then you can do quick pay for a smaller percent when available.chalupa Thanks this.
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