[lucky2]

:?: :arrow: Ok here it is. We found a 93 Freightliner with a newly rebuilt engine in it for a very good price from a private owner. Only has 350 miles on it. It would need 3 tires replaced and a different windshield put in in order to be DOT inspected. Everything else looked pretty good.We figured it would be a good starter truck for us. I just need my road test and we would be able to team it. My husband has his CDL and the experience to help me get through it. He also is mechanically inclined and has done some mechanics on deisal engines. Beings it is an older truck we would probably have to lease on with a smaller co. I have heard that larger co. want newer trucks for their O/O to drive. When your leased on what is a good % to get, and what other things are usually added in by the company your leased on with. With fuel being so high we want to make the right choice. Done the company driving thing before but always heard we needed to get our own truck to make any money. Any advice?

[GMAN]

It may be difficult for you to get leased on with a smaller carrier due to insurance. Most will likely require at least 2 years experience. Some carriers don't care about the age as long as it looks decent and will pass a DOT inspection. Landstar and CRST Malone are two who don't care about the age. I am sure there are others. It also depends on the type of freight you want to haul.

Most carriers seem to pay about 65-68% with power only and 73-78% for tractor and trailer. Some carriers furnish base plates. Others will advance the money and take a fixed amount from your weekly settlement check. You can usually save money if you purchase your own base plate. You will need to purchase either bobtail or unladen liability insurance with most carriers. You will also need to either purchase workers comp or an occupational accident policy. Some carriers can offer you discount rates on bobtail and accident policies. OOIDA used to have a decent price on this type of insurance.

[BanditsCousin]

Whoever told you that you needed your own truck to make any money might have the best advice. You can still make a good living doing the company driver route, but the same is true for being an o/o.

Percentage wise, shouldn't be an issue. I make 55%, and am happy with it. Granted, my frieght is pricey. Gman's figure are very close to what one can expect hauling a skateboard, reefer, or van. Without knowing a few companies you might like haul for, you have your first hurdle. Same goes true for the commodity. Sounds like you've found a decent used truck that can make you money.

[lucky2]

We do have a few smaller companies in mind that we could get leased on with. One of them the company used to own this truck before it was purchased and was also a company that my husband drove three years for. They dont have any empty trucks that he could company drive for but would probably let him drive O/O for them. I know I would have to get behind the wheel and get my CDL first, but would be able to do that in our own truck. I would be able to not only practice in our own truck but also take my road test in it. This company also would,nt require all the OTR experience that most do. When they hired my husband he had no OTR experience at all. He had truck driving experience so they hired him and sent him on his way learning it all on his own..What an experience that was. Ok so if a company is paying lets say 55% what is that in c/p/m ? WE have looked at spread sheets for O/O but they were for those with their own authority. I would like to see one that would fit more in line with a leased on O/O. I checked on bobtail insurance a while back and it seems like it was around $100 a month.Does that sound about right? And as far as base plates what do they usually cost? I think this company pays for them but still would like to know. So when leased on the company would have to take care of all the permits also right? I think my husband is going to call them today and find out if he gets this truck if they would let him run it for them. If they say they pay by the mile what is good and what is'nt. It seems like they paid 87c/p/m for O/O but i could be wrong as it's been 3 yrs. ago since he drove for them. How much is the workmans comp insurance usually run too? I know I,m full of questions but thats the only way to learn is to ask.

[GMAN]

Bobtail insurance should run somewhere between $30-60/month. Workers comp will vary from one state to another. I suggest getting an occupational accident policy. OOIDA has one that runs about $140/month. Most states have a minimum number of employee's that you must have before requiring workers comp. Carriers will usually require either workers comp or the occupational accident policy. The policy is usually much less expensive to purchase than workers comp. Most carriers will take care of the base plates and permits. Some will pay for them, others will prepay and deduct a fixed weekly amount from your settlement check. I would look for a carrier who pays percentage and had good rates rather than mileage. If you try to run for $0.87/mile with the current fuel prices you will go broke very quickly.

[lucky2]

Thanks GMAN , you've been very helpfull.

[BanditsCousin]

Originally Posted by lucky2

Ok so if a company is paying lets say 55% what is that in c/p/m ?

It can be anywhere from 0 cpm to 10 bucks a mile or more. Sounds like you got an "in" with this company, so the best way of finding out would be to talk to them directly and let them know what your intentions are before buying the truck. Find out if they have o/o slots available and then discuss the pay, whether it be a flat rate per mile (loaded and empty, or just loaded?) or if they do %. Simple math means you want the highest percentage, but that's human nature to always want more :wink: I get 55%, The Rev is getting 65%, Gman is getting 100%, and Solo I belive is gettig in the 70's (% wise). The amount that the freight is going for will determine the cpm. If Gman is hauling for $1.25 ( I seriously doubt he is :lol: ) , me pulling $2/mi freight at my 55% would yield similar cpm.

Gman hit the nail on the head about what he said about 87cpm mileage rates in todays business climate.

Buying the truck would be a great way to get experience at your convenience (day/night) and you've already got the trainer, something hardly noone has starting out and having to go to school. Since your husband has a few years of first-seat driving experience, getting you on as the team driver shouldn't be a problem at all. I started at an outfit that threw me out on the road with no experience, and those are great stepping stones into the industry.

Your base plates depend on what state your company is or where you will be plating it (ie: your homestate). And the occupational hazard is a great idea too.

What kind of trailer do you plan on pulling?

[eplurubus]

Lucky2,
I'm a contractor with Fikes; they pay 78%. I provide unladen insurance which, combined with physical damage, costs me $174/mo. through Progressive. I run with the carrier's plate which is registered in KY and costs $1600/yr. and is deducted out of my weekly settlement at $75/wk. I will buy my own plate this fall in CO and it will cost roughly the same. All permits are provided by the carrier. I purchased occupational accident insurance through the carrier and I don't remember right off the top of my head what it costs (I'm way too lazy to get up and look in my files) but it's somewhere in the $140 - 160/month range. I pay for prepass and satellite rental, both of which are deducted from my weekly settlement.

Keep this in mind: You'll hear "Plates paid, permits paid, etc..." All carriers get a percentage of the gross pay for the load. So, essentially, contractors are paying for everything still. We are giving them money to do something or provide something that otherwise would be done by the contractor with the percentage that we give them. They book our loads, handle liability and cargo insurance, process paperwork, etc. All of these things and more we could do ourselves with our own authority, but we choose to give a percentage of our income to a motor carrier to do the office work. And I think it's worth it.

[lucky2]

Ok I think we're understanding the % and c/p/m as far as how much your making on each load. But how do you figure in all the other exspenses in c/p/m ? My husband talked to a couple of smaller companies today. One of them does have a slot for him . They pay 80% of the load. Not sure if thats empty or loaded though. We would have to get our own base plates that are $1800 in Michigan. They rent their trailers for $149 a week. They run flatbeds and haul lumber and steel which is what we are used to hauling. I,m checking on bobtail and occupational insurance to see what that is going to cost . From what you said it should'nt be too much though. So what do u think?

[eplurubus]

Originally Posted by lucky2

Ok I think we're understanding the % and c/p/m as far as how much your making on each load. But how do you figure in all the other exspenses in c/p/m ?

This can be expressed in weekly, monthly, or yearly terms. In monthly terms, get a total dollar amount of all of your monthly expenses. Then estimate your monthly mileage. Then divide expenses by mileage.
For example: $2000 (expenses) divided by 8000 miles (estimated monthly miles) equals 0.25 (twenty five cents per mile)

They pay 80% of the load. Not sure if thats empty or loaded though.

Loaded. You won't get paid to drive around empty. Besides, if you're empty, you'd get 80% of what?? 8)

They rent their trailers for $149 a week.

I rent mine for $145/week deducted from my weekly settlement. Seems to be a standard rate.