Owner Operator Vs Lease Operator Question

Topic 19598 | Page 2

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Rainy D.'s Comment
member avatar

Rainy just to let you know some of the items about leasing are not right. For example in the case of an accident your insurance has deductible 500 for tractor 500 for trailer and 1000 for your load. So the maximum you would be 2000 on an accident.

We also get bonuses for safety, service and inspections. As far as fuel bonuses ours are directly related to yours. The better I conserve fuel the more I make. Basically I save as much as 200 a week by driving slower.

As a L/O we also get 72% of the detention that the company charges the shipper or receiver. So for this year I've collected around 2500 in detention. We also receive breakdown pay when are truck is down. If it needs to in the shop for a while they will give us a loaner as well. Prime also contributes 2500 to a retirement fund for every year of service.

But individual cases can vary correct? Isn't there some sort of review on the accidents? My friend paid in the neighborhood of $10,000 or so and they did this by holding a couple settlements until the "investigation" was finalized. Two.months later she got some money back. When another student crashed her truck the following year, the same happened (different amount, but was over the $2000 you just quoted) and she was not refunded.

Didn't know about the breakdown pay cause they are always complaining about how they are in the hole so badly when the truck goes in the shop. Breakdown pay helps but doesnt cover it, right? The retirement thing is good...but is that cause they can't use the 401k or is that in addition to the 401k.?

I know about the percentage... Ernie said on another thread that when his numbers worked out it was only 2cpm different....so in that case..adding in my fuel bonus probably made us even. Which yes, he pays for fuel and conserves then saves. But there's a ton of expenses that were left out of the other calculations. One team has been running northeast for a month or so and just told me they are spending $400 per week in tolls. The prepass costs more..like what? 80 cents or $1 each time the green light goes off? Other companies seeme to charge a monthly prepass fee instead. Don't you rent the NavGo too? My trainer had the old QC cause she refused to pay for it.

So capping it at $1000 per week for lease and expenses is low. Right?

Shipper:

The customer who is shipping the freight. This is where the driver will pick up a load and then deliver it to the receiver or consignee.

CPM:

Cents Per Mile

Drivers are often paid by the mile and it's given in cents per mile, or cpm.

OWI:

Operating While Intoxicated

6 string rhythm's Comment
member avatar

Not to bust your bubble Rainy, but Dry Van do start out around .32 a mile. That is EXACTLY what I started out at. I make .33 a mile now and will make .34 a mile in another 90 days or so. At my 1 year mark I go up to .37 a mile. Realize that Prime is the highest paying "starter" company. You just get a truck that is turned way down is all.

Last I checked, Shaffer pays more than Prime, and without being in a lightweight.

Dry Van:

A trailer or truck that that requires no special attention, such as refrigeration, that hauls regular palletted, boxed, or floor-loaded freight. The most common type of trailer in trucking.
Brian M.'s Comment
member avatar

I don't pay for nav go it's an option and you have the right for them not to install that application. It's on mine but it doesn't work. In cases of negligence you may be completely liable. Towing bills are not subject to your policy. So yes there is some risk, nothing in business is without it but it's how you prepare for the hard times.

I had a student that had a fight with a skirt and a bean pole and the bean pole won. I was charge 500.00. Then my first co driver backed into a parked car ripped off the entire front end! 500.00 again. So unfortunately your friend may have had some negligence to answer for is my guess or one hellacious tow bill. Also in certain circumstances a roll over is considered negligence and not covered under the policy.

OWI:

Operating While Intoxicated

Brian M.'s Comment
member avatar

Yes capping lease fees is low at a 1000. your correct. It's more like 1300 to 1600 a week depending on your mileage. Now it's time to get off this subject before I get yelled at! Thanks rainy!

Rainy D.'s Comment
member avatar

Yes capping lease fees is low at a 1000. your correct. It's more like 1300 to 1600 a week depending on your mileage. Now it's time to get off this subject before I get yelled at! Thanks rainy!

I think some of the policies keep changing too. The lease I read when I started is different from the one I just saw recently. (The PSD contract keeps changing too). I'm nosey and ike to review things. Lol

Hahah..I get blamed for asking questions!! You answered lol.

Back to the OP question "can you buy a truck from a company not lease". I'm sure the answer is yes, but why would you unless your credit sucked? And if your credit sucks, you probably shouldn't be trying to run a company yet. And some find that appealing about leasing...cause credit is not an issue. The company is going to up that sticker price in order to make a profit. So why not walk into Peterbuilt or whatever dealership and put down a bunch of money and walk out with a brand new truck without a middle man?

This will get me busted by Brett...but in the terminal recently I heard. "I own my truck, so I can't get fired ". Yeah OK. You will still have a truck, but might not be pulling freight here for much longer. Lol. This guy totally didn't understand that as an OO you can be terminated from a company. I asked him three different ways to clarify..and he insisted.

When I asked..."So if you are drunk driving, get pulled in for a drug test and blow hot...prime can't fire you?".

My jaw dropped when he replied "well it will go on my DAC , but they can't just tell me to hit the curb". I pushed harder and asked about a rollover or jack knife. Got the same answer.

So I guess for crappy drivers OO has its benefits lol (yes that was sarcastic)

Terminal:

A facility where trucking companies operate out of, or their "home base" if you will. A lot of major companies have multiple terminals around the country which usually consist of the main office building, a drop lot for trailers, and sometimes a repair shop and wash facilities.

DAC:

Drive-A-Check Report

A truck drivers DAC report will contain detailed information about their job history of the last 10 years as a CDL driver (as required by the DOT).

It may also contain your criminal history, drug test results, DOT infractions and accident history. The program is strictly voluntary from a company standpoint, but most of the medium-to-large carriers will participate.

Most trucking companies use DAC reports as part of their hiring and background check process. It is extremely important that drivers verify that the information contained in it is correct, and have it fixed if it's not.

PSD:

Prime Student Driver

Prime Inc has a CDL training program and the first phase is referred to as PSD. You'll get your permit and then 10,000 miles of on the road instruction.

The following is from Prime's website:

Prime’s PSD begins with you obtaining your CDL permit. Then you’ll go on the road with a certified CDL instructor for no less than 75 hours of one-on-one behind the wheel training. After training, you’ll return to Prime’s corporate headquarters in Springfield, Missouri, for final CDL state testing and your CDL license.

Obtain CDL Permit / 4 Days

  • Enter program, study and test for Missouri CDL permit.
  • Start driving/training at Prime Training Center in Springfield, Missouri.
  • Work toward 40,000 training dispatched miles (minimum) with food allowance while without CDL (Food allowance is paid back with future earnings).

On-the-Road Instruction / 10,000 Miles

  • Train with experienced certified CDL instructor for 3-4 weeks in a real world environment.
  • Get 75 hours of behind-the-wheel time with one-on-one student/instructor ratio.
  • Earn 10,000 miles toward total 40,000 miles needed.
miracleofmagick's Comment
member avatar

double-quotes-start.png

Yes capping lease fees is low at a 1000. your correct. It's more like 1300 to 1600 a week depending on your mileage. Now it's time to get off this subject before I get yelled at! Thanks rainy!

double-quotes-end.png

I think some of the policies keep changing too. The lease I read when I started is different from the one I just saw recently. (The PSD contract keeps changing too). I'm nosey and ike to review things. Lol

Hahah..I get blamed for asking questions!! You answered lol.

Back to the OP question "can you buy a truck from a company not lease". I'm sure the answer is yes, but why would you unless your credit sucked? And if your credit sucks, you probably shouldn't be trying to run a company yet. And some find that appealing about leasing...cause credit is not an issue. The company is going to up that sticker price in order to make a profit. So why not walk into Peterbuilt or whatever dealership and put down a bunch of money and walk out with a brand new truck without a middle man?

This will get me busted by Brett...but in the terminal recently I heard. "I own my truck, so I can't get fired ". Yeah OK. You will still have a truck, but might not be pulling freight here for much longer. Lol. This guy totally didn't understand that as an OO you can be terminated from a company. I asked him three different ways to clarify..and he insisted.

When I asked..."So if you are drunk driving, get pulled in for a drug test and blow hot...prime can't fire you?".

My jaw dropped when he replied "well it will go on my DAC , but they can't just tell me to hit the curb". I pushed harder and asked about a rollover or jack knife. Got the same answer.

So I guess for crappy drivers OO has its benefits lol (yes that was sarcastic)

Lol, I guess technically he can't be fired, he'll just have his contract terminated.

Terminal:

A facility where trucking companies operate out of, or their "home base" if you will. A lot of major companies have multiple terminals around the country which usually consist of the main office building, a drop lot for trailers, and sometimes a repair shop and wash facilities.

DAC:

Drive-A-Check Report

A truck drivers DAC report will contain detailed information about their job history of the last 10 years as a CDL driver (as required by the DOT).

It may also contain your criminal history, drug test results, DOT infractions and accident history. The program is strictly voluntary from a company standpoint, but most of the medium-to-large carriers will participate.

Most trucking companies use DAC reports as part of their hiring and background check process. It is extremely important that drivers verify that the information contained in it is correct, and have it fixed if it's not.

PSD:

Prime Student Driver

Prime Inc has a CDL training program and the first phase is referred to as PSD. You'll get your permit and then 10,000 miles of on the road instruction.

The following is from Prime's website:

Prime’s PSD begins with you obtaining your CDL permit. Then you’ll go on the road with a certified CDL instructor for no less than 75 hours of one-on-one behind the wheel training. After training, you’ll return to Prime’s corporate headquarters in Springfield, Missouri, for final CDL state testing and your CDL license.

Obtain CDL Permit / 4 Days

  • Enter program, study and test for Missouri CDL permit.
  • Start driving/training at Prime Training Center in Springfield, Missouri.
  • Work toward 40,000 training dispatched miles (minimum) with food allowance while without CDL (Food allowance is paid back with future earnings).

On-the-Road Instruction / 10,000 Miles

  • Train with experienced certified CDL instructor for 3-4 weeks in a real world environment.
  • Get 75 hours of behind-the-wheel time with one-on-one student/instructor ratio.
  • Earn 10,000 miles toward total 40,000 miles needed.
Brian M.'s Comment
member avatar

Okay Rainy all other questions can and will be shared when I see you at the terminal. Will be rolling in on Tuesday to drop off my co driver to fly home for hometime. I'll be there for a few days getting some odds and ends done. First beer is on me at fire and ice if your around.

Terminal:

A facility where trucking companies operate out of, or their "home base" if you will. A lot of major companies have multiple terminals around the country which usually consist of the main office building, a drop lot for trailers, and sometimes a repair shop and wash facilities.

Ernie S. (AKA Old Salty D's Comment
member avatar

Okay Rainy all other questions can and will be shared when I see you at the terminal. Will be rolling in on Tuesday to drop off my co driver to fly home for hometime. I'll be there for a few days getting some odds and ends done. First beer is on me at fire and ice if your around.

I should be there sometime this coming Tuesday. I will call you when I get in town. I will have my car with me so we won't have to depend on the shuttle to take us anywhere.

Ernie

Terminal:

A facility where trucking companies operate out of, or their "home base" if you will. A lot of major companies have multiple terminals around the country which usually consist of the main office building, a drop lot for trailers, and sometimes a repair shop and wash facilities.

Brian M.'s Comment
member avatar

Great Ernie looking forward to it

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