With these high fuel prices

[lucky2]

Ok owner operators....With these high fuel prices are any of you guys and gals able to make a decent living out there driving? I was considering buying a truck using some of my home equity and leasing on to a company. But since the price of fuel has went through the roof I have been giving it alot more thought, especially where I would be puting my home on the line. Even if I was to go another route to purchase a truck would it be a good idea right now or should I just go back to company driving. I was a co. driver for over 3 yrs. and got out of it last yr. becouse I just was,nt making enough , not getting enough miles or a good enough pay rate per mile. Another question is for O/O what is a good amount to get paid per mile to be able to survive?what are some of the extas also that should be paid by the company you lease onto that would make it a good deal. I know it,s hard work being out there on the road and just want to make a wise decicion on what ever i decide to do.

[Professor427]

Lucky, being an owner-operator is about running a business, so deciding if now is the time to go into the trucking business requires more than just concerns about fuel prices.
You need to start by looking at your level of experience (three years; did you haul only vans, but want to go flatbed, etc) your financial position (are you willing to use your equity in your house, how's your credit rating) to your general knowledge about the industry.
What you need to do is break down your all your costs so you know what you need to make a profitable business. If the loads you want to haul (through your own authority or as a leased O/O) will give you enough profit, than you have your answer.
I've got a computer loaded with spreadsheets and PDFs breaking down costs and projected revenue. Do yourself a favor; do a search here, read some of the great advice in the threads from people like gman, and maybe download these spreadsheets from OOIDA re: lease-purchase and O/O costs per mile.
http://www.ooida.com/trucking_tools/lease_purchase.htm
http://www.ooida.com/trucking_tools/...t_per_mile.htm

Just my two cents worth.
professor427

[Twilight Flyer]

Why would you use the equity in your house to jump into one of the most volitale industries in the nation right now?

Go company. Unless you are an established O/O and have all your ducks in a row, you'll fail. There is zero margin for error in the industry right now.

[Dejanh]

DO NOT get into this buisiness right now with your own truck, go company like said above.

Its not where you wanna be my man...

[BanditsCousin]

Listen to these guys, and don't listen to these guys. Twilight said it best a few posts above.

If you're looking to buy a truck and lease on, you put the cart before the horse. Look into some companies where you can lease on and talk to them about what the truck can make, based on X amount of miles. Getting your own authority would be silly, unless you've been a freight broker or have made contacts while you've been out of the truck.

As far as fuel prices, my company has a program with an agressive fuel surcharge that pays for, or almost pays for my fuel at $4+ a gallon. Some do not.

[Maniac]

Why would you use the equity in your house to jump into one of the most volitale industries in the nation right now?

I agree, going in with out working capital is failure looking for a place.

NEVER put your house up against anything that isn't a sure thing, trucking is not a sure thing even in the best of times.

[sidman82]

Just to keep in mind, 95% of trucking businesses fail the 1st year. :?
Not a good statistic.

[DD60]

Ok owner operators....With these high fuel prices are any of you guys and gals able to make a decent living out there driving? I was considering buying a truck using some of my home equity and leasing on to a company. But since the price of fuel has went through the roof I have been giving it alot more thought, especially where I would be puting my home on the line. Even if I was to go another route to purchase a truck would it be a good idea right now or should I just go back to company driving. I was a co. driver for over 3 yrs. and got out of it last yr. becouse I just was,nt making enough , not getting enough miles or a good enough pay rate per mile. Another question is for O/O what is a good amount to get paid per mile to be able to survive?what are some of the extas also that should be paid by the company you lease onto that would make it a good deal. I know it,s hard work being out there on the road and just want to make a wise decicion on what ever i decide to do.

Putting your home on the line would be a bad idea. I don't agree that lacking enough working capital is an automatic failure. If you keep your costs down and your rates up you will succeed regardless of whether you have 2k or 100k. I dont think getting your authority is a silly idea either. Depending on where you live you can get decent rates with a reefer if you are good at negotiating with brokers. Most of the higher rates are not offered up front. You have to ask for them. If you can average a minimum of 1.80pm for all miles you should be able to survive. It is not impossible to do. Don't take all the doom and gloom you read here and everywhere else to heart.Whatever you do,DO have a startup plan in case things start out wrong,Ie having a breakdown. Good luck.

[ICS]

I have little interest in buying my own truck any time soon. But maybe... and I mean Maybe someday I might. So while I am out on the road I keep tracked of how much fuel I put in my truck (in Gals. not $) how many miles I drive. what kind of miles I get according to the commodity. (some products may have shorter runs than others) any repairs that are done on a truck. anything that a O/O might have to spend. Right now there is no point of making up a truck payment or tags or anything like that because those costs will be totally different by the time (if) i ever get my own truck. Gal/mile might change drastically by then also. If I were you and you are set on getting your own truck go drive for a company keep tracked of your costs and the companies (as best you can) and make an educated guess on how much it is going to cost you to run a truck. add in few more cents per mile just in case and then add the PPM that you get paid as a company driver and that is the price you will have to get to break even and make the same cash you are making as a CD. except for vacation pay, health coverage and all that extra stuff. unless I was making $.60 a mile after taxes and all costs to me it is not worth the risk. Maybe I would consider a little less for a nice big sleeper

[BanditsCousin]

Very good advice. Fuel is more than the truck going from poitn a to b. Everytime that truck goes into a truckstop and back on the highway can be up to 2 miles. Idling, wrong turns, etc are all part of the equation. Keeping track of fuel costs would be one of the top things I'd recommend a company driver do before being an o/o.

[nsxman2001]

Everyone here has given you good advice...My advice to u is do alot of research before buying a truck there are alot more things your going to need besides a truck..

1) What are u Hauling?
2) Who are u hauling for?
3) Reserve Funds?
4) Local, Regional,OTR
5) Authority? or Not
6) what kind of business entity is right for ME
7) what is my budget for a truck?
8) Insurance

I'm sure there is more to know..
Good luck with your decision...

[heavyhaulerss]

soooo many variables here... i started in 99' bought a $15,000 truck with low miles and have done better than i would ever thought. for my area flatbed paid better by far than van. so i went with flat. also if you feel you need a big heavy chromed out hood, expect to pay more in price for the truck & also for the fuel, cause most (imo) use more than other aero trucks. you would have to figure out 1st, where & how you want to run before you could determine what you need to buy. if you just want to run local & be home every night a $1,500 a month truck payment wont work. however if you could line up a run i used to do... otr to mi & back home. 2 rounds a week take home was $3,500-$3,700 that was before fuel but still good. now i'm home every day drive 186 miles loaded & deadhead home for $500 a day to the truck.. sooo $1,000- $1,200 difference per week. then you have to think about repairs. i have a shop & do a lot of my own work. can you work on your own truck to save money on repairs ? would be nice if you could sit down with someone in person & go over the q & a's. one mistake i see many o/o's make is they start to do real well & they think it will go on & on. then they start to spend,charge & buy things they think they can afford based a few good weeks or months & then things start to happen.. like the trucks needs major repair, or the fuel go's up, or the loads are not there like they were. pretty soon they owe more than they make & they see no way out. imo this is not the best time to get into trucking. but it couls work & work well if you know what your doing & if everything was to work out.

[lucky2]

Thanks everyone for your imput. If I was to buy a truck it would be a good used truck for under 20k and driving for a company. I do know how to do quite abit of the mechanical ends so that would save me a few bucks too. For now I,m just researching the idea and havent made any decisions on what I,m going to do. It may be that I go back to company driving and not even buy a truck. If I can make about the same as an O/O without all the hassle then thats what I would do. I know when I was driving OTR it seems like everyone I talked to said in order to make the $$$ you need to have your own truck. Maybe I was just with the wrong companies, worked for two small companies and got home almost every weekend but was only bringing home pay checks of $500-$600.Those were good weeks.By the time you pay for your meal exspenses out of that...well you can do the math. Driving all week long and puting up with everything a driver has to put up out on the road is in my opinion worth alot more than that. Making what I was making only did one thing ...discouraged me. I had to start out with the small company to get some OTR exsperience, but now that I have that over 3 yrs. worth I,m sure I can do better than what I was making.

[Rev.Vassago]

Thanks everyone for your imput. If I was to buy a truck it would be a good used truck for under 20k and driving for a company

Good luck finding anything other than garbage for that price.

I do know how to do quite abit of the mechanical ends so that would save me a few bucks too.

Ever overhaul an engine? Expect to.

I know when I was driving OTR it seems like everyone I talked to said in order to make the $$$ you need to have your own truck.

You talked to the wrong people.

[Twilight Flyer]

I know when I was driving OTR it seems like everyone I talked to said in order to make the $$$ you need to have your own truck.

Depending on the companies, a good company driver can make anywhere from $40K to $100K or better a year. That's without the hassle and headaches of owning your own truck.

I agree that it's possible to be an O/O today, but as I said, there is exactly zero margin for error on both the operation of the truck and on the business end of it.

[heavyhaulerss]

lucky 2 these are some of the reasons why its a good idea to do your research on trucking. you will get one person telling you one thing & another telling you just the opposite. the confusion is... they are all telling you the truth... but is is based on thier experience for
example. when i bought my ole walmart cabover with 4000,000 miles on it for $15,000 ... every driver with the exception of one told me i needed a hood.after 1.1 mil miles & still going ive done well & that truck has bought me 8 properties & 7 homes. i also had a neighbor buy a truck twice $20,000 & 26,000 both needed major engine work within a year. so him & i will have different versions of how much to spend & how to spend it. i get 7 mpg ihear drivers brag about getting 5.2 mpg but they have a nivce looking truck & or a cat motor with huge power!!! that is fine. to each his own. the money you can save in fuel can & will make a truck payment if you consider say a 2 pg difference. you sound like a smart & also a patient person. take your time. good luck...[/quote]

[BanditsCousin]

Twilight and HeavyHaulers bring up very good points

[rgordon212]

I hate to say it, but I just parked my truck and hoped into a Schneider truck (been an O/O with them for 5 years) and I am bringing home after taxes $800-$850 week and home on the weekends..... I'm not sure what companies you were working for making only $500-$600??? That's plain poor judgment on your part!!!

I know it's not the greatest thing, but after I figured my costs such as fuel, maint, OOR miles, fuel tax, INS, and such, I am only making .15 cents less then I was running my truck.

Now I get to burn their fuel, break their stuff, and make plenty to pay the mortage, not to mention I got a '05 Pete sitting out in the barn all paid for and can sell it at any time to get that 401K where I need it to be.

It was great being an O/O, I just got tired of all the BS that goes along with it.

I honestley think I will get me a low-boy and a dump box and just work PT this summer doing side jobs, that way I can spend more time on the lake

[heavyhaulerss]

I will say that money was never & is still not the reason I got into trucking. it was & is the freedom. 1st & foremost. i've been off 2 weeks now & will take more time off & I dont have to ask permission. the money has to be good too or else i would do something different. I was never out a week. ever. i always did 1 run & back home. never the triangle. b.s. or the 5-10 days out stuff. just my preference. every load i took out, the next one always came right back home within 80 miles. 90 % of the time within 30 miles from home. the longest out was 650 mi one way. i was rarely gone more than 30 hours from home. there are 24 steel mills where i live that helps a lot. plus a lot of other industries. now that i've made some wise choices when i fist got into trucking i can now think about parking my truck also. but if i do i doubt i could be a company driver. unless maybe doing dump work or concrete hauling where i'm home every day. most the those drivers make the same as otr co, drivers. around here anyway.

[Professor427]

I think the last two comments by rgordon212 and heavyhaulerss outline both why people want to become owner operators - it's a lifestyle that gives you freedom of choice (do I work, do I go fishing, do I run regional, do I run coast to coast) and with a little luck, a decent financial reward.
I hope lucky and anyone else considering becoming an O/O takes the time to consider the good and bad of working for yourself. As several posters have already pointed out, do the research, and than decide if you're the right person to be self-employed; not everybody is cut out to be the boss.

professor427