Copperhead |
05-14-2008 03:07 AM |
It is not a bad time to do the O/O thing, in fact, some in the industry (like myself) would say it is a good time to consider the possibilities. There are a lot of indicators that late 2008 and then 2009 will prove to be money makers. Just as in farming, it is a gamble.
I just looked over my spreadsheets since the first of the year. After ALL expenses including putting $1000 per month in my maintenance "kitty" and health insurance and setting aside my self employment tax, SS, and Medicare taxes, and $1600/mo truck payment...... I netted about $5000 a month on average. That is running Midwest Regional, by the house a couple of times a week, and off on the weekends. And that even takes into account the high fuel prices (which means nothing if you are getting good fuel surcharge).
It takes a lot of effort to make the numbers work. If you are considering doing the O/O route, then study, study, study! Learn all you can about running a business. There are a lot of good resources available. Leasing on with a company also requires you "study" everything about the company you can. What are there primary customers, is there a flexible mileage compensation based on length of haul, what is the fuel surcharge rate and how is calculated, what is their SAFER rating with the FMCSA, etc. And then you need to talk with a LOT of O/O with them.
Personally, I would not recommend the lease purchase route. Buying on your own is always a better solution. I realize it is not practical for everyone, but then you need to take a serious look at you financial condition and reevaluate if getting a truck of you own is really a good move. A good way for a company driver to do this is to buy the truck they are in direct from the company. After all, since driving it, you will know what condition it is in, how much repairs have been done, what type of fuel mileage it is getting, etc. With a lot of carriers, especially the smaller ones, you can usually buy the truck you are in and negotiate a better deal than if you went with a dealer or the dreaded lease/purchase. It is not unrealistic to get a tractor direct from the company and save literally thousands of dollars over buying the same spec'd truck from a dealer. Besides, you have access to all the maintenance history records as a plus.
If is very possible to make decent money getting a truck, even in today's economy. But you have to operate it like a business and not just do it so you can strut around proclaiming to the world you are an O/O. If you manage it right and watch the finances like hawk and spend as little as possible on frivolous junk (especially watching the home/personal spending), you will have enough to cover a major repair and take time off when you need or want to.
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