Owner Operators right out of school.
 

I have heard so many stories of people just out of school who go right to O/O with absolutely no experience.

Here is my take on things as I will eventually go to O/O. As I am learning how to be a better Big Truck driver, I am also learning the aspects of O/O too. I want to be sure that I am ready, and have a great deal of knowledge of what I am getting myself into.

I spoke with a Landstar driver some time ago and he made a good point. Don't lease from a company as it will cost you more right off the bat. Buy a used truck, keep it maintained, and then trade it in for a newer truck when you have the capital to cover the cost of the newer truck. He said that eventually you will end up with what you want, even if it does take you time.

i waited two years to learn the rules and keep track of all expenses and looking for the right truck that fit my needs

I think it is much better to learn something about the business first, then buy a truck, providing that is what you want to do. If you track expenses on the truck you currently drive, you will have a much better idea of what it will take when you buy a truck. Those who jump right in to ownership without first having some driving experience are usually in for some major shocks as to costs. There are many more costs involved in truck ownership than fuel.

Lets us not forget, the less experience you have in driving a truck will mean a significant higher cost of operation as well as a loss of revenue.

New drivers will have higher insurance costs, tend to use more fuel, have greater wear and tear on the equipment than experienced drivers.

Also newbies tend to not understand how to maximize their available time, understand the compromise between shorter and quicker routes, etc which causes them to loose revenue.

This is exactly what I do. both on paper, and with software ie spread sheets, truckers helper.

Keep track of it, ALL OF IT! Fuel, repairs, mileage, etc. Find an accountant who can help you figure out you general tax responsibility's. It's shocking what you'll come up with

Re: Owner Operators right out of school.
 

Don't think that just because you know how to drive a truck that you'll be a successful o/o.

Hmm, not sure about that one. I could buy a brand new pre '07 emissions from Crete at aprox $20k less then what a dealer would charge at %7.75 interest regardless of my FICO score.

I agree with that. For your first truck you should buy used. I debated on whether or not to pay cash or spend a little more and keep my monthly payments manageable. You should also have at least $10k in the bank if you buy a used one IMO.

When I got all done with all the misc stuff, I was gung ho. I said this is easy!! I can be an owner operator!! Whats the big deal. I did say to myself though, wait see what the industry is like and then make a decision.

Well I am glad I did. My brother is an owner operator. I watched him, and I noticed he wanted to be home every weekend and couldnt pay his bills.

I also then realized that the lifestyle of the road was not for me. I was in a band before I hit the road. I had friends back home ETC...

I was glad I waited and did not jump into it. I like hanging out, I like playing my guitar and playing out in clubs and if anything happens at home I am screwed if I am in Cali.

So my advice to you if is if you are thinking of doing it. Make sure it is for you. DO NOT LEASE A TRUCK. If you can pay cash for it, hang for a few years and save some money. If you go into it with no truck payment you will have a better chance of making it!!

I have lots more I could say but thats my 2 cents. If you are going to do it, make sure you have done your research and have some kind of a plan together!!! Do not just jump into it!!


Good Luck

One other thing to remember if you have no experience is that you may not find a carrier who will sign you to a lease. Most require from 6 months to 2 years or more driving experience before you will be allowed to sign on with them. You can get your authority, but will likely find it difficult and expensive to get insurance coverage. Most insurance companies require 2 years experience. Progressive will insure you but will not allow you to go beyond a 300 mile radius.

Re: Owner Operators right out of school.
 

Not saying that driving the truck will make me a successful o/o, but, the better you are as a driver, the less wear and tear you will have on your equipment thus reducing operating and repair costs.

As far as the leasing of trucks, well, it depends on the company. Some will take you to the cleaners while others will not.

It isn't the weekly payment that will kill you with a lease truck, if you lease it from the carrier where you are leased. It is the extra costs involved and deducted from your settlements. If you want to keep the truck, you will need to either pay it off with outside financing or your own money or turn it back in to the carrier. There could be expensive penalties for failure to complete your lease. You are usually required to have a maintenance account. Some carriers will keep this money should you decide to leave. If you are thinking about leasing a truck from a carrier I suggest you do a search on this forum. We have addressed this issue on a number of occasions.

It can be done 8)

This is a real good thread.

Like I said, I want to be sure I am as prepared as I can be! I know it is not necessarily easy but, I have already made some changes to my lifestyle that will help me transition when I do. One of which is finding an Accountant to do my taxes next year (lots of stuff to write off).

I am not expecting to go O/O for some time as I still need to decide which kind of vehicle fits my needs the best. I know there is a whole list of things besides that, but the big one right now is a comfortable and effective truck.

Yes, I love my 780 that I've got, even with it's issues. However, I got a lot of research to do!

Is it really worth one's while to be an o/o ? I mean, when you consider the nett income that you'd get to take home after all your expenses and liabilities, would it really be significantly higher than what you would make as a company driver, or marginally so ? And I'm not even taking into consideration the risks and hassles of owning one's own truck. Could somebody please enlighten me ?

It really depends on how you want to work things IMO. If you run hard and are out for 2+ weeks at a time, then you can make it (especially if you are running teams or training). I have talked to numerous O/O's who are making good money, and have a truck that is in great shape.

Here is my perspective on owning your own truck. If you own your own truck, you know exactly what is going on with it, and you are able to do the minor repairs w/o having to rely on a company shop. You can run a configuration that works best for you, and you do not have to worry so much about the company butting in because it is your truck. Yes, companies have specific requirements for the truck, but, you are in control of most everything beyond the company (yeah, I'll catch flack for that one).

I am not saying that running as a company driver is bad, but how many times have you hard wired your inverter into your truck? How about refrigerator? Auxiliary Power Unit? Self Tracking Satellite Dish? Chances are that as a company driver, they are going to laugh in your face.

I also think there are 2 types of O/O's. The first is one who is contracted through a company such as Prime or Landstar, and then you have those who have their own Authority (again Landstar supposedly will allow you to do that). The only real difference between the two is that as a contractor, the company provides base plates, permits (in some cases), Qualcomm, and other benefits; whereas running under your own authority, you are responsible for everything.

If anything is incorrect, please let me know! This is the information I have gathered over time!

It's more about freedom then money. freedom is not free...

It is worth it for me. I can do much better running my own authority than I would as a company driver. There are some who don't do as well as an owner operator as they may have driving for a company. Some of it has to do with the type of freight you haul. The main difference is how you manage your business. Not everyone is a good businessman. Some people need the structure of working for someone who plans their work for them. I could lease on to a carrier and do pretty well. I could also drive a company truck and earn a good living. It depends on what you enjoy and how comfortable you are at taking risks. Anytime you are in business you are taking a risk. I have been in business so long that I don't think much about it. For some, they have a difficult time dealing with the added risk factor of being the boss.

Most carriers will not allow you to have your own authority while leased to them. You can be a broker carrier with Landstar, but cannot lease to them while maintaining your own authority. Comparing Prime and Landstar is like comparing apples to oranges. They run an entirely different operation.

When you run your authority you are responsible for everything. With some carriers you may still be responsible for everything except filing your IFTA or fuel taxes. Some carriers pay the base plates and permits, others do not. It is usually the lower paying mileage carriers who pay your base-plates and permits. Percentage carriers such as Landstar will advance the cost of base-plates and permits, but it is the responsibility of the owner operator to reimburse them. They usually take out a fixed amount out of each settlement until the entire amount has been paid, which often includes an extra charge over and above their actual cost.

I started out as an owner operator, the only experience I had was some shunting experience and a couple months driving a day cab. I never even had any driver training. I had to learn everything myself. I never had anyone teach me how to slide tandems, or what to do when you go throught the scale, it was hard at first learning all the rules and such.

I was very young when I bought my first truck, I was so young that I couldn't get hired at a lot of places because they wanted drivers to cross the border and I was not old enought yet. I got on with a company running A-trains (double trailers) across Ontario. I did that for a while, tried doing flat bed and some other companies until I found a good job that suits me.

I have a good deal now, I usually only work 4 days, sometimes five, a week, I am home usually 2 1/2 or 3 days a week, I don't run hard, about 2500 or so miles per week, and I take off about 6 weeks or more a year.

I am not saying that everyone can go into it with no experience like I did, but you need to have good business sense, and a good plan, you need to look around and find the type of work that suits you,