Taking the plunge. My journey as an O/O.

Discussion in 'Ask An Owner Operator' started by Farmerbob1, Jan 7, 2019.

  1. Farmerbob1

    Farmerbob1 Road Train Member

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    Well, so far there have been two dissapointments, before even finishing the purchase.

    First, I was told I could get the financing I wanted with a 10k deposit. The third party finance company Crete uses decided to change the deposit for the rate and term I wanted to 12k. The price of the truck did not change. My loan balance will start lower. Not a serious issue, since my finances are solid.

    The second is a change in my mileage rates on the account. The information I was given has changed.

    The rates offered on the account are lower, but I get the same rate for empty miles as I get for loaded miles. FSC does not change.

    The account very rarely has loads less than 501 miles, so I am not losing much.

    Still. Irritating.
     
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  3. Tug Toy

    Tug Toy Road Train Member

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    So did you get an outside loan for the truck? Not through Crete financial?

    If so start where your at then start looking for somewhere else to take it sooner rather than later?

    If you have the truck financed yourself why do they make you have a maintenance fund through them?

    If your going to be a business man you should manage that fund yourself in your own account.

    I won’t even let the people I run for buy my plate. It’s mine and I paid for it. If I want to go somewhere else I just leave. I pay my own bobtail insurance separate from the company I’m leased to as well.

    Sounds like you leaving to much in there control? It’s fine to use them or let them help but your exit plan should involve keeping your resources ( truck and credit ) and just applying them somewhere else.

    But that’s just me?
     
  4. Scooter Jones

    Scooter Jones Road Train Member

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    "It's okay, drink the kool-aid...it's good for you...it really is."
     
  5. rollin coal

    rollin coal Road Train Member

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    If Crete is paying for the plate let them provide it. You don't strike me as the kind of driver to just stupidly get mad over something everyday trucking and quit in the middle of Anywhere, USA 1,000 miles from home. Those guys need their own plate for sure but you spending $1,300-$1,500 on one is throwing good money away for nothing. Quit the right way and not having your own plate should never be a problem. Now at most percentage based companies you are going to be buying that plate on your own either outright or via deductions.
     
  6. Farmerbob1

    Farmerbob1 Road Train Member

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    As far as I know, there is no 'Crete Financial.' I have an average credit rating of 730, so if Crete had their own financial services, I suspect they would have at least made an offer to me. They did not. Either that, or the company doing the finances are wholly owned by Crete, but separate, with a different name. Without knowing for sure, it would be poor form for me to speculate with conviction.

    The truck is mine, yes, but the company that I got the loan from has a interest in it too. I do not mind them holding a maintenance fund for me, since it always remains wholly mine, and can be used to pay off the truck early.

    Leaving Crete isn't an exit strategy. It is what WILL happen in 1-2 years if I choose to remain an owner operator. I just want to start slowly, rather than jumping into the middle of the alligator pond and seeing if I can swim fast enough.

    Eventually, if I stay an owner operator for several years, I might start to fully control all aspects of the business personally, as you appear to be doing.

    I might even get my own authority in a few years, and, possible, even buy more trucks in ten years or so.

    I am trying to be a tortoise, not a hare.
     
  7. Farmerbob1

    Farmerbob1 Road Train Member

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    If I drive 90,000+ per year, there is a bonus program that helps pay for my plates for me. I usually average 3k miles a week, so 90k is 30 week's driving.
     
  8. rollin coal

    rollin coal Road Train Member

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    Nothing wrong with how you're doing it at Crete. I did it this same way myself. I could transition to independent easily no question about it when I choose to. Some people go out and dive in head long into that with zero or nearly zero experience and really set themselves up behind the 8 ball. Very few of them ever make it that way and the ones that do are too hard headed to admit some experience first would have set them on the path to profitability much quicker. But that's a discussion we need to pop some popcorn up for.
     
  9. Tug Toy

    Tug Toy Road Train Member

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    Go get em tiger!!!

    If thats what your comfortable doing go for it.

    Just maintenance ( I do most of it myself ) and fuel is $.70 mile. Doesn’t leave much at the rates your claiming.

    I really do wish you the best but also wish I could explain the extra you might be leaving on the table?
     
  10. Farmerbob1

    Farmerbob1 Road Train Member

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    I have absolutely no problem whatsoever with you offering advice and opinions, as long as you are reasonably polite about it. I do recognize that the path I have chosen is nowhere near the most cost effective one. However, in my financial situation, I can afford to leave some money on the table in order to learn with less stress.

    I suspect that a lot of people who jump headfirst into their own authority straight from being a company driver end up burning out on the learning curve.

    The long term plan is to gradually master the things I need to know to be an O/O. As I learn, I can take more responsibility.

    So, yes, feel free to offer advice. Part of the reason I started the thread was to catch the eye of both existing O/O and people like me who are thinking about it.

    Advice you offer might not be what I need in my plan, but it may very well help someone else who has different circumstances or a slightly different approach to becoming an O/O.
     
    Jarhed1964, Coragran, Lepton1 and 5 others Thank this.
  11. Farmerbob1

    Farmerbob1 Road Train Member

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    Well, they finished converting the truck from company to o/o today.

    After an inspection, I can tell that a full chassis lube was performed. The rear axle brake shoes, which were getting borderline low, were replaced. The cab marker lights, which I suspect were responsible for a bit of leakage into the dash in heavy rain were re-sealed. The transmission slave cylinder fluid level was topped off. The truck number was changed, and I got a full set of brand new drives and steers.

    The drives are a combination of three brands. Not sure how I feel about the shop mixing brands like that, but they are all the same size, and all of the tread patterns are virtually identical.

    I will need to check, but I believe the DPF filter was removed and sent for cleaning as well.

    A fairly substantial list of goodies which should help me avoid maintenance costs in the short term.
     
    AaronP and dwells40 Thank this.
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