Leasing Truck And Hiring Driver

Topic 21236 | Page 1

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Bruce H.'s Comment
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I work in the food business where we ship food cross country. In the past 2 years the owner of the company started a freight brokerage and we now have 12 people working in an adjacent office. They are doing quit well. They have put together a business plan to buy their first truck and hire their first driver.

I would like to do the same but I can't work with them for two reasons. 1) They cannot get insurance if they take on owner operators during the first year. and 2) I have a company that would pay me 90% and the above are not going to pay that much.

I found a company close to me that will do all the dispatch, I can use their authority, insurance etc... They pay 90%. The business plan is realistic. The people in my office put the plan together and I have run it by people in the business who say it is a realistic plan with realistic numbers. I would lease a 2018 truck and rent a canestoga trailer. The trailer I would rent the first year and then buy a trailer year two. The lease of the truck would cover all repairs. The rental of the trailer would cover all repairs and maintenance.

My plan is to pay the driver 30%. With a new truck he would be on the road and hopefully not many breakdowns (which would be covered under the lease agreement).

My question is How Do I Go About Finding A Driver for long hauls ? The company I would work with says the driver would run 2500 - 2800 miles per week.

Owner Operator:

An owner-operator is a driver who either owns or leases the truck they are driving. A self-employed driver.

Robert B. (The Dragon) ye's Comment
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Not necessarily. He's not looking to lease from the company he will have the truck leased on to and there's a big difference there. Now, my personal suggestion would be that he drive the truck himself for a while before considering the idea of putting another driver in it. For someone determined to go O/O, a truck lease from a dealership or some place like Lone Mountain does offer certain advantages over conventional financing but I won't get in depth with that whole conversation. 90% is an excellent rate so long as the loads pay well to begin with and the consistency is there.

G-Town's Comment
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Unless I am mistaken' OP has no trucking experience. Based on that alone (if true) he is going to have a very tough go of it.

Errol V.'s Comment
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If you're going to own your own truck, that's a tall order, even for experienced truckers. And if you plan to hire drivers, that will be a hornets nest on a poison ivy rash.

And if someone says "1099" in this case, that will be illegal on top of these issues.

Robert B. (The Dragon) ye's Comment
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Unless I am mistaken' OP has no trucking experience. Based on that alone (if true) he is going to have a very tough go of it.

I went back and read it again and you're absolutely right. I was under the impression he had been driving. Very very very bad risk to take.

Rainy D.'s Comment
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Im wondering what lease pays 100% of repairs. not hapoeming i hear too.much griping for that to be true

Robert B. (The Dragon) ye's Comment
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Most trailer leases cover repairs and even tires. Regarding the truck, I'm betting he's referring to the factory warranty.

Bruce H.'s Comment
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The firm I would be working with already has 6 guys doing exactly what I described. They are all making money. Some own more than one truck. They pay an average of $6000 per week. Out of that I would pay expenses. So revenue of $24,000 per month less expenses. 30% to driver.

So expenses would be:

DRIVERS SALARY (30%) TRUCK LEASE WORK COMP (.154/mile) OCCUPATIONAL HAZARD (which I can get through company for $748 per month) PHYSICAL DAMAGE INSURANCE ($150 / month) TRAILER LEASE ($325/WK - I would buy trailer second year) TRAILER INSURANCE (through company - $96 per month) TRAILER MAINTENANCE (through company - $200 per month) FUEL ELD SCALE TICKETS MISC. EXPENSES ($250 / Month)

Steve L.'s Comment
member avatar

It sounds as if you add no value. I.e. truck and trailer leased, someone else dispatches.

Errol V.'s Comment
member avatar

It sounds as if you add no value. I.e. truck and trailer leased, someone else dispatches.

Capital. Bruce buys and maintains the equipment, gets the business, etc.

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