Context gets lost in message forums, it's easy for things to taken the wrong way.

Yep, some people are either bitter, were abused as a child, have a little penis, or all of the above and must make up for it by beating down others, and the internet gives them the means to did it hidden behind a keyboard.

Not good.
Then stop asking for advise, if you are too stubborn to accept it.

Sounds like my five year old, that throws a temper tantrum under the same conditions. Again, stop asking for advise, if you are too stubborn to accept it. If you can't take friendly advise you are in for a rough life, especially in trucking.

This is always a wise thing to do. I think the problem is that most of the old timers around here, have probably heard the same thing many, many times before. With some ignorant "hot shots" comming in here and spouting the same stuff (not indicating that this is you) It is always good to have a game plan, goal, or dream, get into trucking first learn the ropes and maybe being a O/O is or is not right for you, as it was stated in the class I took. I have talked to some O/O and they same the same thing, is that the industry is trying to "squeeze out" the independant O/O's. To me this appears eveident with governed trucks of the "big guys" and the push to get all trucks governed. A non- governed truck can have a n obvious advantage.

Here is a motto I lived my life by, " a wise man learns by others mistakes, a fool learns by his own"

Take what people say to with a grain of salt and an open mind, especially when they know more than you, and have "been there, done that"

 

[quote="Triple.C"]For me it boils down to this... I was sitting in our Marietta, GA terminal and I was picking the brain of one of our O/O's he had a Pete 379. He advised me that in the end...

.....at the end of the year after all is said and done with his expenses and fuel etc. we both make the same amount of money, the advantage he had was that the truck outside was his.

Here is what's wrong with this picture; as an O/O, he considers owning that truck to be to his advantage. In reality, what he is saying is that he bears the responsibility and risks associated with owning a depreciating asset, but in the end, he is no better off than a company driver.

ANd the advantage I have is when Crete's truck is broke, I call breakdown and tell them to come fix it.

Right!!! So, if you are no better off from having assumed all of the responsibilities, risks, and expenses of owning, operating and maintaining that depreciating asset, then how can you possibly see that as a wise business investment??

Here is something else to consider; let's take an example where you earn, say, $52,000. per year as a company driver. An O/O earns, say, $60,000. driving as an O/O' now, who is actually more successful here??/ (hint: it isn't the O/O!!!)

The O/O has the additional expense of paying self employment taxes, (almost twice the rate for FICA), and he has to increase his cash reserves every year as well. That depreciating asset isn't going to last forever; it is going to have to be repaired, which not only requires cash outlay, but will also involve some loss of revenue.

In the scenario that I have laid out, you will note that I have made absolutely NO mention of increased health care costs or health insurance. Assuming this O/O has a spouse who is employed full time, and has health insurance, after all has been said and done, the company driver is still better off financially. Without health care coverage, an O/O is courting disaster if something goes wrong; should an O/O seek health insurance on the open market, the premiums will be quite high, and the degree of coverage will be reduced.
[quote]

 

The initial thesis of this thread was about driving as a LEASE operator, NOT being an O/O. Two VERY different things; you are wanting to use those terms interchangeably, and that leaves me to wonder who the "Clueless" person in this mix really is!!
:wink:

 

useless got the right idea.he saved up a down payment and he knows a lot of crete customers.he could make it pencil out get his own financing and lease to crete.the issue is these people who are ruined by these lease deals with maybe 1 year experience. if i did that i would want to have 10 grand in reserve.i dont want to work that hard so i just buy stocks and mutual funds tho :idea: most real owners aint running for no 95 cpm either

 

Homer,

I deeply appreciate your kind words, but I do need to let it be known that I am not an O/O, nor am I in any way affiliated with Crete. While it IS true that I could go out tomorrow, and buy a brand new KW (or Pete, but I'm more partial to KW!!) and pay cash for it, it isn't something that I wish to do. (much less, have time to do!!)

There is a vast difference between being an O/O, and leasing on with a reputable company, and trying to scrounge by as a Fleece Operator. As far as I am concerned, a Fleece Operator is someone who has the world by his own balls!!

 

Yea Useless, nothing like bying a job!!!....lol

 

Here we go again! :lol:

BTW I agree, but still have no interest in arguing! :P :lol:

 

Triple C, I am curious about something. From your post, you say or insinuate that you have $20,000 in the bank. If that is true, why don't you just take that money, find a good used truck and pay cash for it? You could bank the amount of the payment you would make to Crete and could trade up to something newer and not have the big payments. You would be much better off financially. It would make more sense to me not to have a big truck payment. I am not going to beat you over the head as to why you should not do this. Apparently, you have made up your mind to do it regardless of what anyone says. However, I would challenge you to look more closely as to the cost of actual operations of a truck. The payment is only part of the cost. With a newer truck, you will need collision insurance. That usually runs from about 2-4% of the stated value. I don't know anything about Crete's lease program, but some have a provision that should you wreck you will be responsible for the difference between what is owed and what the insurance company pays. There is insurance called gap insurance, which would take care of any deficit. I don't know the cost. There are additional costs such as tires, oil changes, etc., Those expenses will be about the same for a used or new truck. I have owned several trucks and still have 2 trucks and trailers. I have been involved in trucking form more than 30 years with somewhere around 4 million miles behind me. I do have some knowledge about this side of the business. I don't think anyone on this forum wants to see you fail. If they did, then no one would have said anything about you not doing this. I have found when confronted with a difficult decision, that it can be helpful to put everything in black and white. We have discussed in detail some of the costs of operating a truck. You can do a search or I and others who own trucks will be glad to fill in the blanks. The first thing I suggest is to find out exactly what this truck will cost you in weekly payments and if there is a buyout at the end, if it is possible. In addition to a weekly lease payment, you will likely also have a payment for base plates and permits (some carriers supply this, if not then you will probably need to pay about $2,200. Again, some will advance this money and you can pay them at the rate of about $75/week), maintenance account ( most carriers who do these leases require lessee's to contribute from $0.08-0.15/mile to this fund). I have seen some as high as $0.20/mile. You will also likely be required to pay a performance bond. These typically range from $500-2,500. I have seen them as high as $20,000, but not from most legitimate carriers. Most carriers allow drivers to pay the listed expenses weekly out of their settlement. In addition, you may need to pay for oil changes, tires, etc., in addition to the listed expenses. Insurance is another expense that you will likely be required to pay. In addition to the collision insurance, most will require you to pay for either workers comp or an accident policy for yourself or a driver. OOIDA has the OPP policy for about $140/month. You will also be required to have either bobtail or unladen liability insurance. Some carriers make this available to lessee's for as low as $30/month. It should not run more than $70/month. There are other expenses, but I just thought you might want to see some of the additional expenses you will probably need to be prepared to pay should you proceed with this venture. I have found that those who push these programs do not always list all of the costs until after you sign a contract.

In over 30 years around this business, I can only recall meeting 2 individuals who have completed one of these leases. Neither were with Crete. I think Crete is a good company for a driver. I am not as sure for the owner operator. I have not looked at it recently.

So, if you put all of your expenses in one column and revenue in the other, then you subtract expenses from revenue and look at the difference. Once you look at the numbers, see if you can live with what is left over. That is the best way to do it. I don't know what Crete's average mileage runs, but you are usually safe with using 2,500 miles per week as an average. Good luck.

 

POSER!!!! :P [/b]

 

Just chain up on November 1st and don't take em' off until April 1st. :lol: