It's a power-only lease; that means carrier pays liability and cargo, O/O is responsible for PD and, like the poster mentioned, WC and BT. Break-even on that type of operation is well below $1.53/mile. Usually, these deals yield cash-flow greater than a decent company job and true earnings about the same as a good company gig. If it was me looking for this particular lifestyle/schedule, I'd look into getting on with an LTL. But if a guy is looking for a stepping stone to a better O/O deal, this isn't bad for the reasons I mentioned before.

Of course, what's "worth it" is in the eyes of the beholder.

 

Is it ever? Nobody said it's a good deal. But depending on a situation, it could be acceptable.

 

I've got my own authority. Anything around $1.50 / mile I'm starving.

When I crunched the numbers on most fleases, I just don't see how folks make it happen.

Even new equipment is ??? in my eyes. A new truck is a wash compared to my 07 century. But I'd have capital equipment costs for 5 yeas vs 30 months.

 

I wouldn't do it. My bottom line (hired driver, including all applicable taxes, insurances, putting money back for maintenance, tags, etc.) is about $1.48-$1.58/mile depending on where driver fuels. This is not counting reefer fuel (if you do reefer). My equipment has no payments either, all paid for in full. One of my trucks is currently pulling a trailer for National Carriers (for National Elite Transportation, their broker division). My authority, their trailer. I am averaging $1.80-$1.85/all miles. I want my own reefer trailer but money is tight. We had driver roll truck twice (only had 3 trucks to start, now 2) so it put us in bad spot. Yes, he is not employed here anymore, lol. They are good deal in when weather is cooler but they don't raise rates or reefer FSC when gets hot and don't make a lot.

 

I don't even consider it acceptable.

 

Good for you, but life is a full of surprises... Don't get me wrong, you are new in this business, and it could be...not exactly what it seems, and calculation could be different too....

 

And what is acceptable for you since the rest of us are wrong?

 

"The rest of you"? Who that might be? What's acceptable for me is my cost+my driver wages, which includes cost of all bennies. That's the minimum. Personally, i'd not take that deal, but i have my own reasons. And main, is not the money. I don't like to run all the time, i prefer to do it on my own schedule, and not that much, that i'd need a bit more. But i've been o/o for 18 years, and it's could be a start for somebody. One thing for sure, you could survive on that income.

 

I would not want to run that cheap and supply the authority and insurance. In fact, I think you should be able to do much better with a different company, if you check around.

 

Update ;"Worth it or not". The company has since backed out on the tolls they initially said would be paid by them. "Deal Breaker". I started this thread to get some feedback,opinions, and or criticism, all of which could be helpful. Thanks to all who posted on this subject. I have gained some valuable knowledge in this venture that i may be able to use in the future.For now i am content to stay where i am.