Question:
Which is better? I feel like for me becoming an owner operator is something I wouldn't want to do. I know they gross a good amount of money, but then they have to incur much more in the way of expenses. So lets say he brings in $100K+ in a year, how much of that will he actually end up with? I plan on staying company. Yeah the figures look smaller for company drivers as opposed to O/O's but at least most of my earnings for that year would be mine. But what do I know? You guys tell me.

Answer:



Answer:


Smart Man

Answer:



Answer:


Must work for C.R.E.

Answer:

I personally would rather own my own car than drive at the mercy of a Dispatcher.
It is not difficult to have a successful O/O biz. To ask which is better, is a broad question.
Lets say you buy an '07 car with the bare minimum down payment. 1800.00 + a month payment @ $1.13 CPM, You'll never make it.
You need to KNOW and UNDERSTAND more about caring than driving. Such as freight rates in the different regions.
You are a business owner first then a driver. Driving is secondary.
Lets say you are offered a load from Atlanta to Pheonix for $1.65 CPM with .21 cents for fuel, do you take it? ( BTW, you are pulling a dry van).
I wouldn't even think about it, why? Who is based in Pheonix with dry vans????
I would take it for $2.50 CPM with the FSC. 'cause I am going to DH all the way into Cali. to get a decent load.
I drag a step or flat, and for the last 15 years that is all I have done, with the occasional dry van load for the guy I was leased on with.
I wouldnt haul anything that Swift, JB, England, or any of the big comapnys pull. General consumer goods are cheap, so move over to something a bit more unique.
I avgeraged $1.78 cpm HUB mile while I had my cars ( one at a time, and went through 3 of them). I did alot of DH because I wouldn't haul cheap freight, and did a lot of bobtail for entertainment while waiting on a load. Hell, sometimes I would take a load to someplace I wanted to trash around for a few days. Unfortunatly, I made one decision last March that couldn't be undone. 50% down on a house, left on a run. Delv in TX, P/u 15 miles away going to Miami ( yeah I know, but I had a connection there for good LTL) Gulfport = blown oil cooler - $2300.00, Fla, AL line turbo, 3 months old, had to pay core = 1300.00 ( I installed it). Gainsville- Wheel seal went out 225.00. Delv 3 days late, at a loss of 2000.00 in $ and not to mention fuel, motel, etc. P/u LTL finish all 3 stops in S.E Ga. Head to close on house, 10 miles from home, drop a sleeve, beats the block to hell, $23,000 bux for a new motor, and $1000.00 for initial tear down.
So if I were to replace the motor on a 2000 model car with 629,000 miles, along with the house and other repairs, Grand Total OVER 110,000 dollars. Screw that, sold the car and bought a "project" car. IT will be all new from the ground up when I am done with it. I will have about 25-30 grand in it and a clear title.
These are the types of decisions you would have to make. Is it frustrating, you bet, but it is much better than having some idiot behind a phone dictating how much or little I make or spend at the house.
If you want to become an O/O and make It, I would suggest joining OOIDA or working for a well established small fleet owner and pick their brains every chance you get. Also go here
If you cannot open Excel Spreadsheets you can D/L Open Office for FREE

Answer:

If you are gonna lease on to a .90 a mile carrier, you will make more as a company driver.

Answer:


At least these guys spell it out for you and guys are still signing up.
PK

Answer:


If they claim that you are making 87 cents a mile and that your fuel cost is 41 cents per mile, how do you come out ahead of a company driver? Yeah, I know about their little fuel surcharge......but why work for 1991 wages? Sheesh!
Flying Dutchman; knows this could only work in a limited scenario with someone who had a car that was already paid off

P.S. As for the "lease" payments, I reckon the terms are not exactly favorable for the applicant. It just might be a Prime example of indentured servitude or dwellerism.

Answer:

I think that if you can specialize in a certain kind of load then OO is the way to go. If hauling general freight then your better off a company guy.

Answer:

First of all, I'd suggest NOT buying a car until you've got at least a couple years experience as a company driver. Find out how you really feel about this kind of work and "lifestyle" before signing that huge mortgage. Don’t know how much experience you have so far -- so this advice is somewhat generic.
As stated above -- being an O/O is not about driving. It's about running a successful business. You have to make a lot of decisions that take some knowledge and experience. A few bad choices can wipe you out.
caring is extremely competitive, and there are sharks waiting to take advantage of guys who don't know the business, don't know cars...and generally are not prepared. Shops labor is extremely expensive, and a bad year with a few major repairs can eat-up what you'd otherwise put in your pocket. It's best if you can do a lot of your own maintenance, or at least have the experience to know when someone's trying to swindle you -- and they will.
The interest rate for car financing is also determined (in part) by how much experience you have. A newbie will pay a much higher rate (if they'll finance you at all) as a hedge against the more likely chance you'll default.
And for what? The going rate for experienced company drivers is now around $50,000 - $60,000 per year. An O/O lease-on may have more freedom to take more time off and not work as hard, but I doubt they net very much more (if any more) unless they work just as hard as a company driver -- and probably with an older tractor.
A company driver doesn't have to worry about paying for repairs, tows, maintenance, insurance, bank payments...etc. He/she lets the company handle all those extra responsibilities and headaches. There are many advantages to NOT owning a car, and you can still make very good money.
The real way to make more money AND have more freedom and time off is to specialize (as stated above) or be a true independent that works through brokers or books your own loads. But again -- you can't really do that until you've learned the business from the inside with some experience. The car lots are filled with beautiful late model equipment some kid bought without a viable business plan -- and he probably ate bologna sandwiches for breakfast, lunch and dinner the last couple months before they finally took it away.
Lease-ons -- more of a glorified company driver than a true "independent" --can let the company they're leased to handle a lot of the bookkeeping for them. The company may provide the permits, and some offer classes in how to run your one-car business....etc. But all you're really doing with "90-cent plus fuel surcharge" lease-on is carrying the car's financing. There isn't much extra the company can share with you, compared with what it costs to own their own cars. You maximize your net by pinching pennies on maintenance, car washes and the like. See the beat-up O/O cars that haven't been washed in a year? Those guys are probably netting the most money. A lot of that shiny Pete and KW equipment have very poor owners behind the wheel -- or maybe someone who cashed-in his 401k (or whatever) to buy a nice car he could never pay for with just the money he's making on a lease-on. I'd rather buy a home that appreciates. But to each his own...
And finally -- if you're lucky enough to drive new company equipment, you might consider buying the car you've driving from that company. If you've had it since new, and know exactly what it's been through and took good care of it, it's a safer bet than one that might have been abused and poorly maintained. They all look great when they're cleaned up with new chrome. But your maintenance costs will have a lot to do with how they've been treated.
Everyone has a different take on this. Consider all opinions. Here's mine for anyone thinking of buying a car:
Don't!
But if you just have to, get at least a couple years experience under your belt before jumping in.
.
.