Quote:
Originally Posted by gula197
wow i had no clue how much $$$$ was involved in being a o/o. I had to ask because about 4 guys in class said that their getting a truck after we graduate. Smh! I think i will be an lease operator before going from otr to a full fledged o/o. How much can a lease operator make a year?
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Most lease operators make less than a company driver. If you want to become an owner operator and do it right, then you need to save money starting with your first paycheck. You don't have to spend $50,000 to buy a good used truck. You should find a good truck for less than $20,000. If you can save $200/week you can save enough to buy a truck in a year or two. Whether you lease a truck or buy, you need to have money put back for the time when you break down. Make no mistake about it, you WILL break down. If you don't have money put back then you could be out of business. Leasing a truck is a way for many to lose their shirt. Most have NO idea of what it takes to operate a truck. Those who lease do pay out more than those of us who buy through conventional lending sources or pay cash. If you break down on the road, you can expect to spend a minimum of $200-300. If you need a tire you can add an additional $500-600. I keep a spare on my trucks so that I don't have to buy at truck stops or on the road. They will rob you at those places. When you break down, you could even need a wrecker. The last time I had a truck towed it cost me $954. The transmission went out on that truck and by the time I paid everything it cost me about $8,500 and a week of running. That included 5 days in a motel for my driver and paying him to sit for that time along with the repairs. Had I not had the funds to make those repairs, the truck could still be sitting. I had a rear end to go out on a truck in Nevada a few years ago. I spent over $4,500. I had a couple of other things done to the truck while it was down, but again, you either have the money to make the repairs or you are out of business. I put a front power divider in a truck at home and spent almost $1,000 just for parts.
A few years ago I blew 3 tires, had to replace a water hose and repair the radiator on a single trip. The radiator repair cost me about $1,000. I had a tire on the truck, but had to buy 2. I think that I had to pay over $200 for a worn out used tire. I think that I spent between $1,500-2,000 for repairs on that trip. I keep up the maintenance on my trucks, but things do happen. It is very unusual to blow 3 tires on one run, but it did happen.
Even if you have a warranty, there is no guarantee that the breakdown will be covered. Tires are rarely covered under warranty. Neither are radiators or hoses. If you have a warranty, they may only cover the engine.... maybe. Another time I had a turbo go out. I spent over $2,700 to replace it and have everything checked. The turbo alone cost over $1,500. The rest was labor and to change the oil. Most turbo's are only warrantied for 150,000 miles. Had this happened at a different place, I could have had a wrecker bill in addition to the repairs. Wrecker bills and road service are not usually covered under warranty. You don't want to drive a truck very far with a blown turbo.
The point I am trying to make to you is that there is a good reason why those of us who have owned trucks suggest that you have a good nest egg before starting out. Even new trucks can breakdown. You could drop an injector and have a very expensive repair on your hands. A bad injector is not cheap to repair. I believe the last time I had to replace an injector it cost $366 just for the part. I think the entire repair was over $800. It may have been more. I have no doubt that injectors are more today than then. I had a truck with a new engine that dropped a couple of valves. It has just gotten out of warranty with a little over 100,000 miles on the rebuild. I spent $6,700 to get it repaired. That was after an $18,000 over haul. The $6,700 came out of my pocket. No money, no truck. Fortunately, I had the means to pay my truck out of the shop.
You could get lucky and not have anything expensive happen for a while. I would not count on it. I am a firm believer in preparing for the worst. If you only plan for things to go right, then you are likely to have trouble.
owner operator starting out
