Considering buying a truck. LOTS of questions.
 

Hey O/O's I'm considering purchasing a truck next year and have a few questions. I am currently a business owner NOW and know how to successfully run a business and I've also driven for TMC flatbed for a year. I LIKE driving OTR but want a little more freedom. My questions are as follows:

1- Better to Lease or Own?

2- As an O/O, is one free to choose his freight and how hard (or easy) one runs?

3- If you agree to haul freight for one company, for example TMC, are you limited to working ONLY for them?

4- What is the APPROXIMATE typical income average for an O/O after expenses?

That's it for now. I'm sure I'll have more and/or those replying will enlighten me to stuff I've never even considered. Thanks for looking.

Re: Considering buying a truck. LOTS of questions.
 

Own. Leasing is a last resort. If you lease because of bad credit, do not get suckered into those "revolving leases".

Totally depends on the company. Generally if you pay the insurance, there is no forced dispatch. Percentage companies usually have more of an open concept.

If you're under their authority and insurance, yes.

This REALLY depends. Depends on the company, what you haul, how hard you work, and how much you can keep costs down.

If you do everything right, 70k-80k is easy after the truck is paid off. More is definitely not out of the question.

I agree with Allan. It is better to buy a truck than lease. If you decide to lease a truck find an independent leasing company rather than leasing a truck from your carrier. You will almost always make more money running on percentage than mileage. Most percentage carriers are non-forced dispatch. If you want to sit for a few days or take some time off they usually won't mess with you. If you want to haul loads for other brokers or carriers it would be best to get your own authority. You could then do as you wish. Some carriers will allow owner operators to book loads outside of their internal dispatch but you will likely have the same deal on the money. Most flat bed carriers will require you to either rent or purchase a trailer. Some will rent you a trailer for about $165/wk. In addition, you will also need to purchase tarps, binders, etc., I would expect to spend around $2,500 for new equipment. You may find used for much less.

PLEASE forgive me if I sound stupid as I've only been a company driver thus far, but what exactly IS "your own authority? Or is there a thread on here I should read explaining it? Does it mean just getting your own insurance and plates/permits?
I can see I have a LOT to read up on before jumping in yes?

Re: Considering buying a truck. LOTS of questions.
 

He is better be! Or he could have problem with IRS on his "status"!
The only criteria for me, is "how hard i want, or need to"!

As of to "income" question, anywhere from 0 to a 100 grand, sounds reasonable! :wink:

All motor carriers must have motor carrier authority to operate. There are two types of authority, common and contract. It is my understanding that the Feds no longer make a distinction between the two. Common is probably the most widely used. Most motor carriers will have common authority. If you cross state lines you are required to have interstate authority. Interstate authority costs $300. To be issued authority you must file an application with the feds, have registered agents in each state in which you operate and have minimum amounts of liability and cargo insurance. You will need authority before you will be allowed to purchase your base plates and permits. It usually takes a few weeks to get your authority back once you apply. It is difficult and expensive to obtain insurance until you have at least 2 years experience. Some states require intrastate authority to pick up and deliver within their state. The two largest are Texas and California. You don't need intrastate authority unless you pick up and deliver within those states which require intrastate authority.

Does local work qualify towards the 2 year experience request or must it be OTR?
So similar to getting plates for a car you need A) insurance and additionally B) Common intrastate authority if you want to run the 48 states?
What are registered agents in each state? Do you mean shippers or insurance agents or ?
That $300.00 cost is weekly, monthly, or yearly?
Thanks so much G-man and the rest of you!

You need Common Authority. $300 one time fee. You can go to FMCSA to apply online. They have simple instructions on what you need.
You need interstate for 48 states. Intrastate for one state.
You need a US Dot#. You can get it also at the same time you apply for Authority on FMCSA website. They will also explain insurance requirements.
You need to register with the new UCR registration system. Simple, look them up online.
Registered agents are BOC-3 process agents which you can have OOIDA handle for you, for a small fee. These are required to obtain your authority. Worth it.
You need to file with IFTA if you go interstate. Fuel tax based on miles driven in each state during the course of the year. First year is estimated.
NY State HUT. Highway use tax for NYS. Must file if you drive in NY, even if not in NY you must have to drive in NY.
2290 heavy use tax. Once a year tax paid to the IRS. Price depends on weight. Generally $550 a year.
1 mil General and auto liability insurance, 100 thousand cargo.
Some companies will accept local experience, some won't.
There are also other permits needed for certain states like KY and OR, some other mabye also needed that others might know.
I think I got most of it, but I might have missed something. I'm sure I did.

Sounds pretty easy actually.

I should get my own authority and everything.

How long does it take generally to get everything in order?

thanks sidman! :wink: