Company Driver Vs. Lease Operator.

Topic 11752 | Page 1

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Ride2BFree's Comment
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There are advantages and disadvantages to each, many here will tell you being a lease operator does not pay enough for the risk, I will put here the weekly gross compare to my best week (I was a company driver only for couple of month) As company driver. My last week as company driver I did 3000 miles and my gross was 1200$ for the week. Please realize this is the gross. Taxes and deductions are different to everyone.

As a lease operator you are getting your gross deposited and you are responsible for your own taxes. In addition there are couple of deductions from your pay that will run only for about 6 month and they are for the deposit and a bond and the student loan for the cdl so I will add them back to the lease operator gross I feel this way it will be easier to compare. I'm deducting 10cpm for a maintenance account.

First 3 weeks as lease operator it's a grace period so no truck payments yet so I will not count them then I took home time so I will not count it either so I start fresh my first full week as lease operator with all the payments And adding back the temporary deductions. Pay was 1200$ plus 225$ temp deductions so net income before taxes 1445$. I'm happy.

CDL:

Commercial Driver's License (CDL)

A CDL is required to drive any of the following vehicles:

  • Any combination of vehicles with a gross combined weight rating (GCWR) of 26,001 or more pounds, providing the gross vehicle weight rating (GVWR) of the vehicle being towed is in excess of 10,000 pounds.
  • Any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing another not in excess of 10,000 pounds.
  • Any vehicle, regardless of size, designed to transport 16 or more persons, including the driver.
  • Any vehicle required by federal regulations to be placarded while transporting hazardous materials.

CPM:

Cents Per Mile

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

Old School's Comment
member avatar

Are you going to keep us posted on a weekly basis?

Brett Aquila's Comment
member avatar
I'm happy.

Everyone always is in the beginning. Then they disappear after a while never to be heard from again.

SAP:

Substance Abuse Professional

The Substance Abuse Professional (SAP) is a person who evaluates employees who have violated a DOT drug and alcohol program regulation and makes recommendations concerning education, treatment, follow-up testing, and aftercare.

Bud A.'s Comment
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I didn't get a chance to calculate earnings for first year solo while I was home over thanksgiving but hope to post here after Christmas.

G-Town's Comment
member avatar

double-quotes-start.png

I'm happy.

double-quotes-end.png

Everyone always is in the beginning. Then they disappear after a while never to be heard from again.

Another one bites the dust...

"Happy" after a weekly gross of $1445 without inclusion of the truck payment? What am I missing here?

SAP:

Substance Abuse Professional

The Substance Abuse Professional (SAP) is a person who evaluates employees who have violated a DOT drug and alcohol program regulation and makes recommendations concerning education, treatment, follow-up testing, and aftercare.

∆_Danielsahn_∆'s Comment
member avatar

I just can't wrap my head around going lease Op so soon in "your" career. Happy with only a couple hundred more dollars? .10 cpm maintenance account isn't much either, and could be wiped out with one blown transmission, and "you" would still be out a ton more, beyond that.

If a person is going to go this route, my thinking is that the o/o option would be better, because he could be contracted with company A, but go to a broker to fill in the gaps. Example: load from Chicago, to Bangor, ME. But he would have to deadhead out 200 miles to his next pickup, but still sit for a day before appointment. Could he fill in that gap and run brokered loads on the way there?

Honestly, I like the idea of owner over lease, but that is my 10+yr plan, and maybe not even then. And lastly, are o/o required to comply with the e-log mandate?

Deadhead:

To drive with an empty trailer. After delivering your load you will deadhead to a shipper to pick up your next load.

CPM:

Cents Per Mile

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

Old School's Comment
member avatar

I'm sure he included his truck payment in that calculation. He just didn't show us the numbers. If he didn't he's already sunk, and he's smart enough to know that.

We welcome his attempt at showing us the advantages of being a greenhorn lease operator, it's just that we've a long history of these guys doing this sort of thing just vanishing from sight very quickly. So if he can pull it off and show us some good consistent numbers for at least a year or more we will be right in there pulling for him.

The truth, or the reality of it is that there is only so much money in the jobs that can ultimately end up in the driver's hands - he will figure it out, but hopefully he can help some of us see it with hard numbers.

OWI:

Operating While Intoxicated

G-Town's Comment
member avatar

I'm sure he included his truck payment in that calculation. He just didn't show us the numbers. If he didn't he's already sunk, and he's smart enough to know that.

We welcome his attempt at showing us the advantages of being a greenhorn lease operator, it's just that we've a long history of these guys doing this sort of thing just vanishing from sight very quickly. So if he can pull it off and show us some good consistent numbers for at least a year or more we will be right in there pulling for him.

The truth, or the reality of it is that there is only so much money in the jobs that can ultimately end up in the driver's hands - he will figure it out, but hopefully he can help some of us see it with hard numbers.

I re-read his original post, although it wasn't clear from the text, I hope he subtracted his truck payment to arrive at the $1445 sum. Beyond that, all ears.

OWI:

Operating While Intoxicated

murderspolywog's Comment
member avatar

I figured I would jump in here. Just a few things to understand about me and my truck before I put my numbers out. I O/O not an L/O, I drive for swift and I train part-time . I won't drake it all down for you, I will give you a general brake down and round to the closet dollar. I worked 8 months this year and trained 5 students. My gross was 140,017th my expenses were 79,399, my take home was 63,691. Out of my take home I had to pay taxes. I paid 9500 in taxes so far and about 7000 for medical for my family. Makes my income 47,191 . this allows my wife to stay home and raise the kids with out working, and I can take time off to be with them that's why I am an owner operator. This is not an easy job and there was 2 month were even thought I was working because of new tires and blown turbo we did not see a pay check so you need to be financially sound before you try to become an owner operator. Also understand when it's time to get out. If people have questions I will answer them on the forum do not pm, with any questions please. Brett thanks for an awesome site.

Owner Operator:

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

Indy's Comment
member avatar

The Schneider IC Choice drivers have a very lively online presence ... which I have followed for some time, now. There you will find many O/O and L/O drivers that are still happy, with 2 or more years on board.

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