New Article From Old School About Buying Or Leasing A Truck

I didn't misunderstand anything.

I'm hoping I can let this be for now as I'm not trying to get banned here.

You're certainly not going to get banned for discussing these issues with us. These conversations are incredibly helpful when everyone conducts themselves professionally, as we all have here, and we can get all of the complexities and nuances out there for people to ponder.

We'd love it if you'd be willing to share your net income numbers that you report for Federal income taxes. I completely agree with Old School - sit down with your accountant and start going over the numbers you have already so you know where you stand at all times. Your accountant should be able to help you understand how you've done so far and also make projections for the coming months and years.

Old School also mentioned another critical point - you're going to have to replace your equipment at some point. You have to figure out long ahead of time the costs for that and where the money is going to come from. Of course, make contingency plans for the unexpected like a blown motor (Heaven forbid).

Finally, figure out your operating costs to the penny per mile. One thing you're going to notice is what a massive difference a few tenths of a mile per gallon is going to make for your bottom line. We'd all love to go 100 mph, but there's a reason the largest, most successful companies all run 58 - 65 mph.

My best advice is to hang onto your cash like it's oxygen. Spending a little extra on finance charges is a small problem. Running out of cash is devastating. Play it super safe.

So to Cliff's note this.

1. Don't lease. 2. If you have a burning desire to earn about the same as a company driver, but want to do it in a rented truck that you can decorate with shiney dodads, pretty lights, kick butt stereo etc. You'll still be doing it in a rented truck and now have the pleasure of being fiscally responsible for it.

Shorter, you're going to rent a truck, pay for the fuel, maint and repairs so the company doesn't have to. But in exchange for that you get a bit more freedom in your load choices, and you can play dress up with your truck.

*Ok, ya that's a little snarky. But for some even that bit more of perceived freedom is worth it.

From the 2 guys I know that fall into that group and freely admit they ain't getting rich doing it. Their advice was wait at least a yr. Then find the carrier that best fits (could be a Mega, or one of the lease only companies) And have bare minimum 9k cash stepping in to cover setup and the things you didn't think of.

I wonder if setting up a LLC, would be appropriate as well at this point?

Oldschool,

That's good advice in your last post and I appreciate that. I will take it to heart.

Thank you.

Gtown,

You are misunderstanding that part you quoted. That was in response to Oldschool saying he nets more than me. In which he thought I was claiming that as my net. I always said it was after fuel, insurance, ect but still had taxes and truck expenses to come out yet.

I do realize I will probably make less in the next 6 months due to weather and holidays.

I'm hoping I can let this be for now as I'm not trying to get banned here. I enjoy the site.

Hey dont pay attention to G - he's just a swifty!

Glad you're doing well friend. You seem happy! Keep the shiny side up!

Glad you're doing well friend. You seem happy! Keep the shiny side up!

I run down to one of the Ports in Oakland a few times a month lately. If you see this truck down your way my CB is always on. I scan channels 17 and 19.

It's been a while, hope your doing good.

This is a great forum and I am very thankful to you Brett. Lot's of knowledge here. I am in the research process (2 months now) of trucking and which company im going to choose. Your high road course is awesome and definitely suggest it to anyone looking at getting a CDL. Now pertaining to this thread, I've been studying the cost of owning my own truck and own authority and it's not cheap. Will I do it someday...Maybe. I figured the salary I will make as company driver (Ballpark figure) and how many years to save and reach that number. Im investing in my future. Also im studying the other parts of this industry and that's Freight Brokerage. So it's all about you and how bad you want something to be successful. It's not easy,nothing is if you don't learn first. Good luck to everybody and God Speed. Vinnie D

Hey, I’m new to the group and love reading everything available at Trucking Truth! With that being said, even in 2020 is the common theme to avoid becoming an OO? Is there ever a way for the industry to be lucrative for OOs?

Hey, I’m new to the group and love reading everything available at Trucking Truth! With that being said, even in 2020 is the common theme to avoid becoming an OO? Is there ever a way for the industry to be lucrative for OOs?

There may be some, but not for a new driver, not with the huge insurance rates, and not in this uncertain economy right now.

The site is to help those considering trucking, those in school, and newer drivers in the industry.

We are not going to recommend lease in any form, or the owner operator route.

Big E, this is an election year... Uncertainty is plenty. Rates started down last year mid year. It was more of a self correction period, but now nothing is going up until at least after november. Just the way it works.

With the new trade deals, if they hold up maybe we will see some increases. Maybe.

Get into the industry driving a company truck, learn your craft well and maybe down the road things will improve.

Welcome aboard Big E!

even in 2020 is the common theme to avoid becoming an OO? Is there ever a way for the industry to be lucrative for OOs?

That's a great question!

One would assume when the economy is going good that an O/O ought to be in a lucrative position. I saw your question earlier and waited to see who might respond. Fortunately two of our members who own trucks responded. PJ is leased on to a tanker company and PackRat parked his truck last year to become a company driver. Both of them are hoping for better times to come.

I honestly think most owner operators don't understand the business dynamics that make it so tough in trucking. The pride of ownership overrides their ability to understand what they are up against. In a commodities business like trucking you just can't break out from the rest of the competition. The bigger companies with plenty of clout and capital control the market. They have staying power and can negotiate the best terms for their operational expenses.

Most owner operators end up leasing themselves out to the big players. When you can't beat them you join them. They provide stability for the small owners as long as they can benefit from their services. It's a dynamic that's almost like a parasitic codependency. PJ makes a decent paycheck, but there are some company drivers doing better than him. It's also true that he's doing better than some of the company drivers.

Trucking is so uniquely fitted to the over achievers that it oftentimes is more beneficial to work as an employee who understands the dynamic system of risks and rewards that make up the trucking industry. I'm convinced that anybody who can be really productive at this will always be better off as an employee.

This business rewards those who produce really great results. Honestly, it's that simple. Everybody looks in the wrong place to try and figure out how to make money at this. They look at greener pastures (Other Trucking Jobs), or they look into owning their own truck, or jumping into a lease agreement. The path to being successful is staring them in the face yet they push it aside and try all these alternatives.

For me the raw truth is that you've just got to be good at this job. That's where the big money is. You've got to produce the kind of results that get rewarded. That's not easy, and that's why people think that there's got to be a shortcut. You can't undercut the realities of this business. You've got to understand how it works and then make it work for you. The most effective way of doing that is to be consistently productive at the highest levels.