So you want to hot-shot? (Will be updated/edited frequently)

Discussion in 'Expediter and Hot Shot Trucking Forum' started by HOTSHOTTER432, Apr 29, 2015.

  1. flatbedcarrier

    flatbedcarrier Medium Load Member

    640
    726
    Jun 8, 2005
    Southern California
    0

    Sorry I didn’t respond earlier. Been real busy.

    I completely understand why people lease to companies. I’ve been in trucking for approx 37 years myself. I have had several friends go the lease on route over the years and lose their equipment, even their homes in the process. From the outside looking in, it may seem like a viable option but the reality of it is, most people who lease on fail.

    Yeah, today most independent owner operators use factoring companies and get their pay minus 2% within 24 to 48 hours. That makes it huge difference in the start up process.

    What most new guys looking into trucking don’t realize is, even in a lease they're paying for everything that a independent is paying for. The lease owner operator is giving up a lot more than he even realizes.
     
    Lite bug Thanks this.
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. WOT

    WOT Bobtail Member

    5
    4
    Dec 28, 2020
    Houston, TX
    0
    If I understand correctly, this biggest difference in monthly expenses is the carrier typically pays for the lease owner operator's commercial insurance. Right? Which may be $1500 - $2500/month. So if a guy is averaging $15k gross income per month, and giving 30% to lease on, then that person is giving up $2000 - $3000/month, while putting the same amount of driving time, miles, wear and tear on equipment, etc that he would running as an independent owner operator.
     
  4. flatbedcarrier

    flatbedcarrier Medium Load Member

    640
    726
    Jun 8, 2005
    Southern California
    0

    A company that you’d lease to doesn’t pay for your insurance. They subtract that and everything other expense of owning and operating a truck from the income your truck produces. And then they also take 25 to 30 percent on top of it for their cut. Trust me when I say, you won’t be getting anything for free in a lease. The insurance through them could be a little less expensive because they might be getting a multiple truck discount? Will they be passing that discount to you? Maybe, maybe not. Basically companies that lease owner operators on are financing their start up so that they can get on the road. In return, they get a big chunk of the money your truck produces. It’s like taking a loan with a crazy high interest rate.

    I’m not saying that companies that lease owner operator on don’t earn the money they ask for. I’m just saying that there isnt enough income in one truck for the owner operator to get ahead when giving up what they’re requiring. A owner operator is much better off saving up to become a Independent right out of the gate.
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  • Draft saved Draft deleted