How much does it cost to be an O/O?
 

I've always wanted my own business and I've heard there is always work for truck drivers. Is this true and how long does it take to become an O/O? How much does it cost? Do ya need good credit? I'm single and staying away from home for long periods of time is not a problem. I've never driven a truck before, however.

You can become an owner operator as soon as you get your CDL, but I would not recommend it. You will need good credit and a down payment of about 10-30%. The actual amount will vary according to your credit and experience. Most lenders don't want to loan money on class 8 equipment. Those who do consider credit, experience and how much money you have in the deal. You can start on a shoestring, but I would not recommend that, either. If everything goes well then it is great. If things go sour, then you lose your investment, truck and livelihood. I would suggest you have enough saved to rebuild your engine. It usually costs from $10,000-18,000 to do an inframe. In addition to that you will need money to run you until you get your first settlement from the carrier to whom you lease your truck. But, you should have money within a week or two. I would encourage you to get at least 1-2 years driving experience before considering buying your own truck. You may find that you prefer being a company driver. I woiuld encourge you to sit down and think about why you want to be an owner operator. You stated that you don't yet even have your CDL. How do you know that you will even want to be an otr driver? This is something you need to experience for yourself. It isn't anything that you can tell someone about and they will understand it. If you can't save a significant amount of money as a company driver then you are probably not going to do well as an owner operator. To be successful in this business you will need to be disciplined. If you are an owner operator and go home you will need to constantly be doing things on the truck unless you want to pay a lot of money to a shop. Garages charge up to $130/hour or more. When you own the truck you learn to do things you can yourself. It is important to have the money set aside in case you have a major breakdown. It costs a lot of money to keep trucks well maintained. It is cheaper to do the small things so that the big things don't happen. It is difficult to finance your first truck. If possible, I would recommend that you save your money and pay cash. That is what I did with my first truck and trailer.

Whenever I am asked what it costs to be a carrier (not an o/o) I always say it takes ~$100,000 in start up capital and then it costs you ~$1.30/mile not including driver pay.

How much have you got?? lol

2 weeks ago it only costed me about $4k... water pump went, 3 days down time and fuel during the week..

Makes me glad to be a company driver. I make $75,000 or more plus benefits, I just can't see buying a truck. I do not want to be a lifer either. O/O is a big jump, there are quite a few good paying company jobs out here once you put some time in. The other thing that detours me from buying a truck is the HOS changes, EOBR proposals, and other possible legislation. I'm too uneasy about all the potential changes to invest in a truck. I respect you guys that make the jump, but I think I will remain a company man for the remainder of time in the industry.

That sounds like a good gig. I like the O/O thing though. I make comparible money as you, but mine is after taxes, after health insurance, and after all the costs to operate the truck including truck payment. Plus, I get by the house a couple of times a week and am home every weekend/holiday, and don't have to check with anyone to do that. And I am using an EOBR! So much for not being able to make money having one of those boxes in the truck. And the new HOS proposal will have minimal effect on my operation.

But, I will admit, it didn't happen overnight and I do put more hours into the job (a few are not logged) than a company driver would. But the setup is what I would prefer as opposed to driving another man's truck. But, being a company driver is what many people choose, and there is nothing wrong with that. Trucking is such a diverse trade that it takes all kinds of different operations and drivers to make it all work. That is the real advantage to trucking. There is a niche for everyone. It really takes an entrepreneur spirit to go with owning a truck and you have to have a real business/bean counter mindset and get your rocks off running numbers.

I bought my truck on a shoestring lol.

Bought a 2006 Mack Tri/axle dump truck. Paid 76,000. put 8,000 down. I had to borrow money my 1st week to put fuel in it LMAO. But 2 years later im still in it and have a good amount sitting in the bank. But everything worked out for me. But it was a big roll of the dice. If something would have happen with in 6months of buying the truck i would have been up a creek with out a paddle. But i have a couple CC with high limts. But i try at all costs not to use them. So i had them in the back of my mind as well.

If you are thinking about buying a truck then I would start by saving money out of every paycheck. I would recommend saving from $100-300/week. If you can discipline yourself to save that much, you can buy a truck in 2-3 years. That will give you time to learn how to drive and give you some idea of how this business actually works. If you can't save, then you are not ready to buy a truck. It costs a lot of money to buy a truck and get started.

It's never a good thing to consider becoming a o/o without driving a truck for awhile. You simply don't have the experience at this time. Over the years, many have gotten into truck driving, but never became truck drivers. And yes, there is a hugh difference between the two. Everyone starts at the beginning, whether they like it or not. Those who try from the middle, and buy from the start, will lose more than if they started their o/o carreer with being an experience truck driver.

Learn to crawl, then walk, then drive a rig. After you have been in it long to commit yourself, (and most of you already know), then buy that rig. At that time, you will know the in's and out's, what to do, and not to do. And to top it off, it's better to learn all of this while getting paid by someone else rather than to learn out of your own pocket.

Of course, you know, I could be wrong. :)