[-FlyByNight-]

Please, I would really appreciate only receiving replies from successful Owner/Operators who are not only living it, but have been for quite some time. This is a very serious decision for me and I really only want advice from those that can state facts based on first hand experience. Thanks

Let me first state a few facts about myself, so you understand my individual situation. I'm divorced with no car payment, mortgage or child support. I have bills, but nothing major. I have a class A CDL with TX endorsements and have been driving professionally for just over two years. I've done flatbed(Arrow), reefer(Marten) and van(Arrow & Crete). I'm not interested in ever doing flatbed again and won't even consider reefer until they change the HOS to where I feel I can make enough money and still run legal. I'm open minded about tanker. I have been driving for Crete almost eight months now and am very content.

If I'm to become an O/O, I MUST be leased on to a company that allows me to take part in their group medical insurance plan. Primarily for the prescription drug plan. Otherwise it will be cost prohibitive for me to become an O/O. This is NOT optional and if I can't do this, I can't become an O/O. So as you can see, that severely limits my options right out of the gate.

The good news is that Crete offers it's Owner/Operators just that!
They also have a new or used tractor purchase program and two pay scale options for their O/O.

I've talked to all types of O/O over the last few years. Independents with their own authority, those leased to companies, those doing straight leases and even those doing company lease/purchases. Ideally I would love be able to buy a new truck directly from a dealer and be an O/O with my own authority, but based on my previously mentioned needs am not sure it's fiscally possible/realistic.

Based on what I've learned by talking to all those various O/O and given my personal situation, Here's what I'm seriously considering doing.

I'd buy a used Century from Crete and pay it off ASAP while gaining valuable experience as an independent contractor. I would select pay scale option one and try to run primarily trips 1,200 miles and less, which is 81% of Crete's yearly loads. If after I pay the truck off, I still want to be an O/O, I'll trade the truck in on a new International, Kenworth or Peterbilt. The reason I say those three is that I've been told they're about the only trucks that truly hold their value. I like Volvos, but have been told to avoid them like the plague as an O/O due to maintenance issues. :cry: Please correct me if I'm wrong.

I know most will say to buy from a dealer, not a company. The reason I'm going with Crete is no down payment, decent interest rate, I somewhat know how the trucks have been maintained and they extend the warranty 200,000 miles. Yes, I know Selectrucks does that too and they're not out of the question entirely, but I don't know the maintenance history on them as well and I'd just prefer buying used from Crete.

I guess what I'm asking you to do is take a look at the links containing all the facts I've supplied and with what I've said I plan to do in mind, pick it apart. :wink:

Well that or tell me I've done my homework and to stop being such a chicken and GO FOR IT! :lol:

Thanks in advance.

[mike3fan]

Question
What happens 6 months from now when Crete only has 300 mile loads for you and they take 2 days to load and unload and this happens for 2 months in a row?

I know this doesn't seem realistic to you,you seem to have made up your mind already.

But fleece purcheses are set up to be good for the company and bad for the owner,you have no leverage, you cannot take your(their) truck to a different company when freight falls thru the floor.

It has been said 100 times here and I know you have some special circumstanes,but you need to save up enough money to have a good sizes down payment on a used truck and have atleast $10,000 in reserve for emergency breakdown repairs.

To me and I just came from a container company I don't think Crete pays enough to be an O/O there.

[geomon]

Your revenue should:
1) Cover ALL your expenses.....take a good hard look at all of them.
2) Cover paying yourself (as a MINIMUM) what you currently make as a company driver.
3) Pay a min of 10-12% return on investment (ROI) on the money you are investing in your business.

I'm think'n it will be hard to achieve that on $0.95-$1 per mile.

[allan5oh]

Considering this guy pushes crete, and even has crete in his signature. On top of that, he just sounds like a recruiter.

[-FlyByNight-]

Mike3fan, thanks for the reply. It's an actual outright purchase on my credit with a down payment, not a lease/purchase. I have taken into consideration what you're referring to about slow times and no I have not made up my mind already. Doing my homework first.

Geomon, thanks for the reply. I've done what you suggested and am inclined to agree with you especially if the unforeseen catastrophe were to happen. It could sink me. :cry:

Allan5oh, thanks for ignoring my wishes and posting useless drivel on my thread. I'm not a recruiter, just a satisfied Crete driver and like to help others find a decent company where they'll be happy to drive like I am. If all I was interested in was making money off of recruiting drivers for Crete, I'd have my name and truck number in my sig too. Now kindly stay off my thread! :evil:

[GMAN]

97% of your loads will pay from $0.86-1/mile. Deadhead pays $0.67/mile and according to the information provided around 8% if deadhead miles. Fuel costs will run around $0.50/mile based upon current prices. Frankly, I don't see how you can come out on the money. Personally, I could not see myself leasing to any carrier where I would average considerably less $1/mile. I prefer percentage. It is usually more profitable for the owner operator. If I read the information correctly, you will be required to keep the truck leased to Crete or one of their companies until the truck is paid off. That may not be good for the owner operator. While payments are manageable, they are still high for a first truck. I prefer seeing a payment of around $500-800/month. While it sounds good to not have a down payment, you should not go into buying a truck without some money in the bank. All trucks break down. You need to make sure to have some cash in reserve for breakdowns. I would also suggest you get your own financing. That way, you can leave if and when you decide to do so.

I agree with Gman, if you are able to, get your own financing. You don't want to be married to any company. When things get really tough (and hopefuly it would never happen to you) you want to have the option to take your truck elsewhere. Its your business, and you need to take the right steps to protect your investment. I will never lease a car, same goes for a truck, its not really yours and by the time it is you've paid far more than if you would have purchased it off the bat. Trucking is my livelyhood and I want to be the one in control over my business.

Lease options are only good for the company you lease from, talk to some of the poor saps at England that bought into leasing a truck, they are hurting bad. High payments and just enough miles to pay the truck bill. Talked with guys at Stevens who lease those shiny black Petes, they too have high payments and many have to take on student drivers just to make ends meet. Maybe your company is different, maybe not. But for me, I would NEVER get into a lease, its bad business. **edit** Look at this topic, a good read about someones experience with a lease at England http://www.classadrivers.com/phpBB2/...ic.php?t=17668

I got the cash I needed to buy my first truck from a 2nd on my morgage. I did this because worst case, my payment would only be $450 a month, so if I didn't work I could come up with at least that and not lose my truck. And, with my change in work (no paychecks for 4 mos) I've had to fall back on that bare min. payment, but once my checks come in again I'll start making those $2000+ payments to get the loan free and clear from my head. I got a very nice fully loaded Peterbilt (2001 387) with 677k miles for 43k, and it made me about 10k a month with easy running. My situation required me to sell it only after 3 months and buy a local runnning truck, but I turned a profit on that rig so I didn't do bad. Good trucks are out there, look in truckpaper.com, shop around a bit. Many dealers will pay to fly you out to the lot and even give you some kickbacks to make the sale (new tires, free warranties, ect).

I'm rambling now I guess.. By no means do I have a ton of experience in this field, but I run my business like a business. And as I said before, a lease option is bad business in my book. Many on here will agree. But, as I say to everyone. Do what YOU feel is right for YOU. You may fail, or you may succeed. Do what you personally are comfortable with. I've always trusted my gut, most the time it works out for me. Best of luck

[-FlyByNight-]

GMAN, Thanks for the reply. Yours is exactly the kind of reply I'm looking for. You are correct on the numbers you posted and yes, I would have to remain with Crete or refinance the truck before I left. Which wouldn't be a problem. I guess I'll just continue as a company driver and save money for now. I'm assuming you do not suggest buying a new truck when just starting out, so what make, model and year of truck do you suggest for the kind of payment you mentioned? I just worry about inheriting someone else's headaches if I buy used.

Floored, thanks for the reply. As I stated in my last post, it's not a lease/purchase. It's an actual purchase with a credit check and a down payment. I do understand where you and the others are coming from though. I doubt I'll buy through a carrier now.

I know my end goal is to become an independent O/O with my own authority. I just don't know how to make that dream a reality from where I currently stand. I'm concerned I'll never be able to become an independent O/O, because I'll always need to have prescription coverage or pay around $1000 per month out of my own pocket. :cry: What do you guys do for medical coverage when you have a pre existing condition as an independent O/O? Thanks again for all your insight.

[Ian Williams]

Originally Posted by -FlyByNight-

What do you guys do for medical coverage when you have a pre existing condition as an independent O/O? Thanks again for all your insight.

It will be neigh-on-impossible to make more as an O/O that as a company man with Crete if you throw an extra $20k/year into the equation for health insurance and Rx.

Didn't see the outright purchase part in your first post, oops.

There are many good trucks than can be had in the 30-40k price range. I see no reason to buy a new rig when you are starting out. Do whatever you can to keep your payments as low as possible, you don't want to hit a bad spell and lose your truck. I think you should run smart and buy something more plain jane that gets good fuel milage vs a flashy chormed out longnose "truckers truck". Get a dyno done on the truck you wish to purchase. If your worried have your own mechanic of choice look it over. Get a warranty (however I always opt out on this and haven't needed to use it). You'll have problems with almost any truck, be it new or used. The dyno and mechanic report will tell you a lot on your purchase. My Pete needed about 3k in repairs over the time I had it, nothing was taken care of by its warranty, thus why I pass on them now. My Freightliner hasn't had a single problem. Thing is, I just deal with it as it comes, part of owning a business, you know?