Question For Owner Operators?

Question

Ok This is kinda long but please bear with me...
The company that my husaband and I work for is changing from a trucking company to a brokrage company. The owner asked us if we wanted to buy one of the Semi-Truck and trailers for what he owe's on it. Wich is about 16thousand for a 3 year old Peterbuilt and a decent Dry Van. He will carry the loan and we will make the payments for the next year untill its payed off. The we will use him a broker for the loads that we are doing right now. Mean while getting paid alot more money than we make right now.
So this sounds way to good to be true right?

Also can anyone tell me what to realisticly exspect from being an O/O. as far as break downs, getting paid, and permits.

Thanks in advance.

We run Short haul to Las Angelas, thats not going to change. Also all insurance and permits will be carried by the company, The authority will be in our name but not much else untill the truck is payed off.
What I really want to know is... What I'm seeing on paper going to be reality? or is it all smoke and mirrors?

Answer 1

As an O/O, you will probably be responsible for your own insurance, your own fuel, you will have no benefits, etc. And if you drive exclusivly for him as a broker, you will be stuck on what lanes you will be in. And he can send you anywhere. The O/O thing is a good thing, you have more control... but you just have to realize what else you will be responsible for.

Answer 2

While you can get paid to a LOT more money, you have to keep in mind that you will be taking on a LOT MORE expenses and risks.

1) As OO, you need your own insurance. Trucking insurance depends on miles, experience, and equipment. Though parking and other details also matter.

2) You'll need your own DOT permit if you go interstate, and state permit if you go within the state. Your local law enforcement will also want to do inspections. In CA it's the CHP that do those inspections at the truck scales and such.

3) You'll need to subscribe to DOT and local law updates published by JJ Keller (jjkeller.com)

4) You'll need to join a alcohol and drug testing consortium (where that used to company operated). which will randomly pick some candidates out of a pool to be tested.

5) You'll be responsible for your own filling out driver log books (again, from jjkeller.com) and total them up and all that. I'm guessing you already know this, but now you're responsible for auditing the results as well!

6) You'll be responsible for your own maintanence and consumable such as fuel, tires, and more. Remember, downtime now means you sit home and twiddle your thumbs! Better have your contact numbers ready with you on the road!

7) Fuel, very expensive nowadays, but at least diesel is finally cheaper than gasoline again. Join a program like CFN and enjoy cheaper fuel all over the CFN area.

8) Many states may follow CA in adopting tougher emission standards for diesel trucks and pullers... and as OO you may not have the $$$ to actually upgrade the equipment.

All that I'm saying is don't jump in just yet. While the idea of OO sounds exciting, you should calculate all the yearly expenses, loan payback, maintainence, fuel, insurance and licensing, regulation and other requirements, and so on with anticipated business income, expected idle time, and so on, before committing fully.

One possibility is contact a friend in the business and have him join up and share the rig as partners to a) spread the risk and b) increase utilization. Remember you are limited by Federal DOT standards to # of driving hours per day. Having more than one driver gets around this problem and makes longer trips possible within limited timeframe.

Answer 3

you will get employed at JB Hunt or Schneider yet they pay undesirable for brand new drivers. i guidance starting up off driving cement truck or promote off truck. commonly those places dont have the adventure requirement that trucking organizations have. proprietor operators or different organizations gained't choose a rookie by using coverage prices