SELLING AUTHORITY

Having an authority with some age to it can save you thousands on insurance, and increase your earnings potential since some brokers and shippers won't deal with new authority.

 

Some taiban guys want the butter without working the milk

 

It won't save you any money on insurance, but you may have a broader choice of insurance carriers. 6 months is the point where you won't be turned down by a few brokers.

 

You typically buy an established corporation with the authority. A 10 year old company paying 5k for liability is valuable compared to a startup paying 20k+. You just have to make sure there is no debt or negative aspects associated with the Corp. An authority in someone’s personal name is worthless.

 

its worth something if your buying a established operating company that comes with contacts, direct customers equipment and employees ect. but i think a lot of people think having a new authority is a lot worse than it is. i never had any issues when my authority was new.

insurance will likely re-evaluate risk with a change of ownership anyway. i have heard that change of ownership will likely trigger a new, dot audit as well so your not even saving that. although the new entrant audit is no big deal as long as you keep everything straight from the get go. a company i worked for long ago changed ownership while i worked there and about 5 months later they started really getting on everyone about making sure logs and paperwork was right because they were getting audited.

i started as a intrastate company then later added my mc# my insurance rates didn't go up for the new authority. but my first year was expensive. part of the reason why new authority risk is higher is there is no past data to base the risk on so there basically just going to assume your high risk.

 

Unfortunately many ppl here never build trucking companies they don't know what is it like .... when u asking money for it they going like why so much? I can open it for 1000 bucks.... just stupid..... they want good running business what will make money right away just put trucks on it for 10k ...... HILLBILLIES.....