Could I Make Money As An Owner Op With My Wife As My Co-driver?

My question is: Is it commonplace for companies to try to pressure new employees into leasing? Is it something where you end up getting punished on miles/loads if you don't eventually lease?

Absolutely not.

Larry, have you noticed how we are discouraging leasing and/or purchasing a truck. We wouldn't be doing that if we thought it was the way to go. Good solid company drivers are in big demand, the top producers don't get punished they get rewarded.

One more thing, I was involved in the sign business for 30 years. I had a small fleet of six class 8 trucks at one time. I still wouldn't recommend you and your wife go that route.

My businesses experience is what helps me see the problems with this issue.

What I've seen in the replies seem to leave out one other small detail. Insurance. Sure, if your 18, 20' tall and bullet proof, the fine for violating the mandate for insurance is nothing. But what if you have a family. As a company driver, I can get insurance through the company at a discount, because the company has the number of employees to get a discount.

As a single person trying to get insurance, prices are crazy.

Then there is the subject of retirement. You can't get in the company 401k as a L /O.

Not to mention the taxes.

If you're dead set on becoming a L/O take a year of being a company driver and "play the game." That is, do all the math as if you were paying for it. Find out how much the loads would have paid, how much the fuel surcharge is, and run the numbers. Be sure to take out 33% for taxes, etc.

Even my trainer who is lease said he makes little more than a company driver. He's now going Lease purchase because he wants to own the truck at the end of the lease. His plan is to buy another truck and get someone else to drive for him....

No, you don't necessary need your own authority as an O/O. A lot of the smaller companies are owned by people who have never been in a truck. They have a DOT authority and O/O'S lease on to them just because they have an authority. So you can see a small company with 30 units today a the next day they are down to 5 simply because they do not own the units.

This thread appears to be a good location for asking a question. Moat people have been talking about leasing from a particular company and working for that company. My question is, do any of you have experience leasing from an outside source that does not bind you to any paticular company? In esence one could run for anyone or themselves from loadboards and brokers as an o/o. Would this be a viable option? I'm still new and have been a company driver for 4 months and looking at options. I want at least a year's experience before venturing out on my own. Thanks in advance.

From my understanding, you would have to get your own authority to do this. That opens up a whole extra set of costs. You would have to buy, or lease your own trailer, as well. "O/O companies" like Landstar, or CRST Malone, exist so those drivers do not have to drive under their own authority.

At least, this is the way I understand it works

When I was in CDL school all the teachers & trainers said DO NOT get into a lease option until have a year or More experience OTR also quite a few who did go the lease route did get a lot of miles for a few months, then the miles started going down, made it hard for driver to make house payments, bills & the truck payment, but I am NOT speaking from experience like most on this site, have but what I have been told & read myself.be a company driver Some companies do put the pressure sales tactic on a new driver, resist that. Someday I will meet a local Schneider leased driver and ask him how well he does, at my age, I feel I will go for a company driver job

Since you guys are on the topic. My wife and I have a decade of running our own company and may consider going O/O at some point. That being said, we've vowed not to even consider leasing or purchasing until we have sufficient industry experience to fully understand what we're getting into. My question is: Is it commonplace for companies to try to pressure new employees into leasing? Is it something where you end up getting punished on miles/loads if you don't eventually lease?

So it's not about the money for me as it is other perks you get as a L/O at Prime as to why I do lease.

Ernie,

What are the other perks you get as a L/O at Prime?

Ernie,

What are the other perks you get as a L/O at Prime?

Since we don't usually talk about leasing here on TT, I won't go into the perks a L/O has at Prime. Let's just leave it at that. I don't want to give rookies the wrong impression here. They already have enough to remember on how to do this job, no need to fill their heads with information that will only serve the purpose of clouding their already overloaded thought processes.

Ernie

Steak Eater, allow me to say something here. I know Ernie personally and have a high regard for him. He's not sidestepping your question, but is genuinely concerned that a rookie driver would misconstrue his answer into some legitimate reasons to enter into a lease. Ernie has been a company driver with considerable experience, and also has experience in owning a business. Both of those factors, on top of the fact that he is a very hard working and disciplined individual help contribute to his ability to navigate through the complicated issues involved with leasing a truck. He tells us himself that he is making about the same money as a company driver.

That's fine. I didn't realize the topic was somewhat off-limits here, but have recognized the emphasis placed on persuading new drivers against it, and rightfully so. My apologies.

That's fine. I didn't realize the topic was somewhat off-limits here, but have recognized the emphasis placed on persuading new drivers against it, and rightfully so. My apologies.

Apology not needed but appreciated. Like OS stated, I was not trying to sidestep the question, but was trying to not cloud the discussion that was going on from the beginning of this topic.

Ernie

Wow, it never ends. I finally understand why this is a banned topic lol.

FWIW, I leased for about 9 months. Net advantage over company was about $0.02 per mile, but that's over the life of the lease. The last four months killed me financially. And by the way, "walk-away lease" means when you walk away, they hold your last week or two of pay for 45 days while they settle up the lease (including repair costs), then they send you a bill for the difference.

But wait, I had $2,000 in my tire fund and emergency fund, plus what shoyld be about $1,500 net at least for the last two weeks that they held, and the truck was pretty much in the same condition as when I got it from them! I'll get money back!

OK, one guy I know got $32 back two months later. Everyone else I know got a bill. I'm not exaggerating. Anecdotal, sure, but that includes six other drivers besides me.

It's funny, because the reason I even have time to respond to this is that my truck broke down this morning. I had to get towed to a dealership. I can't tell you what a relief it is to me that I'm not responsible for paying the tow bill or the repair bill. If it's really bad (I hope it isn't!), I'll get breakdown pay instead of just being out a day of truck expenses with no revenue.

See, as a company driver, all the risk is on the company, since they own the truck. As a lease operator, some of that risk becomes mine, and for what? $0.02 a mile?

If $0.02 per mile is that important, there are a few things I can do that are less risky than leasing a truck. If I want some risk, I can always look for a different company to work for and hope it works out better. Or for less risk, I can work harder to get some of the bonus money my company (and many companies) offer for better performance. Or for no risk, I can work smarter and get more miles and better loads than the other drivers at my company.

Yes, you get to choose your own truck and have exactly what you want. And you can turn down loads to Brooklyn, and fuel wherever you want and take whatever route you want and take home time whenever you want. But the truth is you will be taking less home time, and fueling and routing pretty much where the company would have had you fuel and drive, and you'll take that load to Brooklyn because it pays really good and OMG you need that revenue this week if you want to have any kind of check on Friday.

But for all those who are convinced they can do it, that they're different, that they have better information or a better lease deal or more business sense, go ahead and take on the risk unnecessarily. It's your money. Good luck.