Comments By Ride2BFree

WOW, so much information here, Lot to be learn from others experience.

People assume when you are 59 and broke a certain things about you, I will not even try to assume what they assume but my life experience thought me that people get into a certain position because of differed reasons.

1 can loose it all for medical bills on himself or a love one, another can loose in business going bad and another just lose a divorced case and it can go on and on.

Many people in different industries think their business is unique and special. Yes, there is something unique in any industry but the main goal of most businesses is to make money at the end of the day. And the way to do it is by having more income then expenses.

People are going to different industries because of different reasons and there is one saying IT'S NOT THE PEOPLE'S PLANS THAT ARE FAILING IT IS THE PEOPLE THAT ARE FAILING TO PLAN.

and to contrast it there is another saying

PEOPLE PLAN AND GOD LAUGHED AT THEM.

As I say to start with, yes for the short run it's much better to be a company driver then O/O or Lease/O.

But as someone else said here show me a problem and there is a money to be made by solving it.

Yes a company driver can move to the company that will have what he likes if it their equipment passenger policy pet policy or home time But even with that it looks like companies are running more after O/O Obviously because they make more money with them. But company making more money is not necessarily cash flow, because big companies financial statements are built differently then a small business profit and loss.

In business the higher the risk the bigger the reward

So if one become O/O or Lease\O For one company where he leased the truck from he minimize the risk As I say to start with he can walk out at any time he does not need to put even money in gas they advance it.

If he get a better deal with another company he can move with his truck and still make the payments or get a better deal on a different truck.

Yes, there is a cost in everything and here the cost of minimize the risk And not investing your own money is by paying a premium to the company you lease the truck from.

And another lose you have is by making less in money and benefits combine compare to company driver.

As I learned from previous business experiences there are 2 very contributing factors that a business need in the beginning 1. Is the timing. If the time is good for the industry and how long it will stay that way. 2. Is pure a little bit of luck. Yes I know some will say it can be compensated with hard work but you can see some can work harder then others but just missing being in the right place at the right time.

Thank you all for the info again. At this stage I made up my mind and made the decision not to decide yet.

Thanks you all again for the info and support.

I understand that there are many type of O/O. Some work with brokers and they need to take care of all their permits and they really run an independent business with doing their own marketing and such.

And another group is the one leasing from the company like swift and then the company take care of everything for them and support them and they even get the datacomm card so actually the company advance them the gas money and subtract it from their settlement amount.

I did a little money comparison to see what works better.

Comparison company driver vs. O/O

Comp. Drvr. O/O

Income per mile: 0.36 $. 1.12$

2700 miles per Week average. 972$. 3024$

First 2 years cdl School reimbursement 37.50$

Fuel. 6.5 mpg. 2.50$ per gallon. 1038$

Weekly payment for lease Including all permits ins Qualcomm. 911$

Sub total. 1009.50. 1075.

Other benefits and expenses.

Company driver: get a basic free life ins. 1 week a year paid vacation Lower cost health ins plan. There is no company contributions to Drivers 401k.

O/O benefits: can choose a nicer truck color. Say no to jobs that he must take to keep up the pmts. paid for other repairs the truck might have Pay for tires brakes oil and more.

Well it didn't came up straight but I'm sure you can figure it out.

The only time that the O/O coming ahead is if he becomes a mentor Then for 4 weeks he is getting a team driver for free. Because he get paid for miles the student is doing and company pay the student driver by the hour. I drove about 10,000 miles with my mentor in 5 weeks.

Thank you all again for the input. I'm start to rethink about it.

Please do one thing. Price an engine rebuild and tell me that your escrow account will cover it. Depending on the motor, a rebuild on these truck motors can set you back anywhere from $18,000 -$35,000. Also take into account that it could happen at any time you have that vehicle and chances are, the truck you're leasing won't be brand new and won't be under warranty. You have to look at the fact that by the time you're done with the lease, the well used truck you just purchased isn't worth all that much on resale and will probably be around the 800,000 mile mark when a lot of major purchases will be coming due in regards to parts.

I will only lease a brand new truck and figured out 12,000 miles per month so after 3 years it's only 432,000 miles.

I was thinking that if a truck is well kept and maintain properly it can run for a 1,000,000 miles. Am I wrong ?

I understand all your points Brett, But then how come there are so many O/O out there?

My assumption is that O/O are working more and harder in order to keep make the payment the company is getting people that are more committed to the job. The company does not need to pay for fuel when comp driver let the truck run at night for the A/C. O/O Are looking better after the truck. Yes the company makes more profit on O/O because it's a financial profit on the lease of the truck. So I assumed because the money for the company is on the financial deal they can give the driver a little more on the hauling so it's kind of a win win for both.

I spoke to a driver that he is an O/O with swift he says he was leasing the truck for 5 years and with the money he put aside for maintenance that he never used he just paid for it in cash and now he is own outright is own truck.

In addition company trucks if we will assume that comp driver goes home for 4 days every 4 week so more then 10% of the time the truck is standing.

When company is giving their calculations about the difference between comp driver and O/O it show that for the short run its much better off to be a company driver.

What attract me is the ability to own my truck with in a few years.

So if I understand all of you guys correctly what you are saying is wait till you can buy your truck direct from a dealer not through the company (rip off) leasing deal.

So if someone can buy a truck without the company finance, is it better for him to be O/O then comp driver?

Thanks again to all

But I got no money to put down my credit is bad (I might have to go for the bankruptcy route. )

Ride2BFree, I've been through a lot of experiences in my life, including the "bad credit" thing.

Why not stick with being a company driver for a couple of years, make yourself a goal of getting your credit re-established.

Prudence should dictate to you that if you are just about to need to declare bankruptcy, it is not the ideal time to try something like leasing a truck just so you can have your dog or your friend ride with you. If your current company doesn't let you have a rider or a pet, you can easily switch to another trucking company that will let you do those things.

Being steady at something for a few years could certainly help you get past your credit problems, then you can try and damage it again by leasing a truck.

Yes, in one way it makes sense. But when you a company driver they own the truck at the end.

Because my age I feel like the sooner I'll be able to own my truck I'll be able to save much more.

Now about damaging my credit again they say the truck lease does not go on my credit so I don't understand how can it damage it?

Appreciate your comment, it's not they I doubt you I just try to understand and learn things from other drivers experience.

I'll let the powers that be and a few other veterans on here to have run their own businesses in the past answer this at great length but you really really need to think about what you're doing leasing a truck from a company

I understand they charge more then if I'll try to get a loan by myself.

But I got no money to put down my credit is bad (I might have to go for the bankruptcy route. )

And there is the option of giving back the truck and becoming company driver again so I see a minimal risk.

Please tell me what I don't see. Is there other options for getting a truck?

I'm a new driver few month and consider moving to become owner operator. I will gladly appreciate some comments advice help, thank you. 1. I realize owner op might have a better cash flow but after considering paying more in health insurance taxe at year end lost of paid vacation school reimbursement company life insurance financially for the short run it does not look so much better. But the advantages are I can get a dog and a friend with me when I choose. I can choose my own route.

And my long term plan is to lease a truck from the company after 3 years to buy the truck they will finance so in 5 years it will be paid off and it will be my truck.

Then working with the truck for another 3-5 years payment free So I will be able to save for my retirement. Maybe.

I'm 59 and broke now with nothing set aside.

I heard that owner op are getting more miles than company drivers.

I'm single so I need home time to see my daughter once every 3-4 month.

I figured out that there is very little risk First you can any time walk away from the lease it's like a month to month lease actually second if you don't get enough miles from them you can go with the truck to other companies and as long as you make the payments they have no problem with that.

Do other company take owner op if the truck is not leased through them?

My other question is what the best truck to buy Peterbilt? Freight liner? Ken worth?

Other?

I like the idea of the automatic freight liner, does any one had an experience with it?

Is it makes much of a difference if I plan to keep the truck for many years to choose Cummins vs. Detroit Diesel engine?

Thanks again for your help.

I'm relatively new CDL holder drive for swift. While checking other opportunities some companies said they don't hire from CA when I say I'm planning to live on the road they say they looking at the state where the CDL is from. Is this the case with many companies?

I was thinking changing my home address to TN to save on state taxes Is there good opportunities in TN?

Does any one now what the exact process is there any test physical requirements?

Thank You.

Thank you all for the valuable info.