Pros and Cons: Company Driver vs. Lease Operator

It is a common misperception that lease operators do better (or at least better than company drivers) by focusing on miles rather than profit. During the four years I leased my current truck I only averaged 2,318 miles per week and was generally home every other weekend for three days yet I took home a bit more than $65,000 per year on average before taxes but after all truck expenses.

It sounds to me like your problem is making a good living as a company driver. If you are working OTR full time and can't bring in at least 900-1100 per week on average then the problem wouldn't be made better by leasing, in my view. I would consider altering the way you work or the company you work for long before advocating a lease situation.

Good luck,

Jim

 

I am a "Choice" lease driver for Schneider and couldn't be happier.
The term 'choice' is really appropriate because literally, that's what you do.....everything is up to you. You pick the load, you pick the route, you decide how long you're going to stay out, you choose how long you're going to be home. I really like Schneider because it's all up to me. Many or most lease / OO plans are still dispatched by a central dispatch, or in the case of Swift, they give you a couple of options. At SNI, I bring up the load board for where I am or where I'm going and choose my load based on rate, how much it weighs, where it's going, when it has to be there, and how much freight is coming out of where it's going.
As far as money goes, it can fluctuate depending on all of the factors above. My best week was $2200, my worst was -$200 (Thanksgiving week). My typical week (if I run all 7 days) is in the $1500 - $1800 range.....a short week (going home or coming back out week) will be in the $800 - $1000 range.
Another thing is that there are no surprises (except for IFTA taxes once a month which usually run in the $75 range). I keep track of my loads and my fuel and I can tell you within $50 or so what my next check will be. The deductions are set and all the same week in and week out.
Last year I was on the program for 6 months and I did $100k in revenue. Of that $100k, $35k was mine. This year should be a bit better because I've come around the 'learning curve' a bit and will make some better decisions......so, I'll probably do around $80k this year on $200+k in revenue (at least that's my plan).
Look around on these boards and on the Schneider board. There's lots of information posted.....I know because I've posted a bunch. Good luck and happy trails.

 

I would say that if you are just saving for a down payment, you are setting up for failure. I say the ideal starting point is 15k to 20k or better. Why? You just never know. Better to be safe and keep your house....just sayin...

 

I think most L/O fail because they are underfunded, no business plan, and jump into L/P too soon after
becoming a driver.. Usually takes a couple years too begin to understand the trucking business...
Learning to drive is the easy part on the road to becoming a L/O or O/O...

Too many forget to save their money, and buy too much eye-candy for their trucks that don't help the
bottom line... Seen it as an O/O when I was trucking... Guys get those large settlements and hit the chrome
shop and add a lot of Xmas lites... That doesn't help the bottom line when you are starting a business...

There are L/O on this board that do very well.. Follow there advice, read their posts.. There are always going
to be people that say it won't work.. Most of the time, they are right because too many jump into L/O without
doing their homework, savings, and having a business plan.

 

If you going to do a L/P, make sure you have enough money saved for emergencies.

 

don't lease with trans am
19 months I only had 3 checks that averaged over the $.30/ mile company drivers get
with all the headaches and no benefits

 

I'd agree, if you can't afford an inframe out of pocket your not financially ready to be an O/O. Some L/O programs have a safety net built in but YMMV from program to program.

 

The thread in the link below is a must read for the person considering going to a l/p or o/o.

http://www.thetruckersreport.com/tr...forum/222195-so-you-just-leased-truck-eh.html

 

If you are looking to the short term then I would say you are better off remaining a company driver. If you are looking forward 5-10 years then doing a good lease purchase is the way to go. To the above statements there are a number of caveats. How old is the truck? How good is the lease deal? Do you have a mind for business? Are you in this for the long haul? I could go on, but the main thing to keep in mind is that you are a business owner with all the headaches that go with it when you lease a truck.

Suddenly you find you don't need a governed truck to make you slow down, the fuel pump does it instead. The difference to your bottom line between 65 and 58 can be over $100 a week. If you don't understand that then I wouldn't go down the ownership road. When you have down time so you go in for a simple pm and the threads come out with the oil plug, are you ready for the $1800 repair bill and the 3 days of down time? Yes the company will front you the money if needed and get you back on the road, but now you are looking at 2-3 weeks of negative settlements. I have spent over $10 grand a year over the past 2 years in maintenance costs. The result has been a revamp of my home to road schedule. Still I would do it again.