Lease Purchase Planning to become an owner operator.

After 6 years of working for the company, I started thinking about owning a truck. I am not doing anything too quickly, but in another year or two. At this stage I am thinking about mainly 2 things: 1. How will being an owner operator affect my work life. 2. Finance. I don't have too much of savings, which means if I am buying a truck, I need to get a truck loan. Even then I need enough in hand for a down payment. If not buying, I know about truck leasing, but is not sure if that's a good option, given I will be driving it everyday. All these thoughts are starting to distract me, but I am sure, I want to own a truck. I know it's early to make a final decision yet, but I am someone who tries to start planning everything as early as possible. I hope someone could advise me more about becoming and owner operator and financial options.
 

GAnthony

Well-Known Member
Supporter
After 6 years of working for the company, I started thinking about owning a truck. I am not doing anything too quickly, but in another year or two. At this stage I am thinking about mainly 2 things: 1. How will being an owner operator affect my work life.
to establish yourself, you may possibly put in MANY MORE hours, than you are doing now. you may miss out on some home important things, and your spouse will have pretty much more of a load on her shoulders to bear.



2. Finance. I don't have too much of savings, which means if I am buying a truck, I need to get a truck loan. Even then I need enough in hand for a down payment.
from what i have read, and at one time attempted to join the ranks of the newly poor, you should have (at least) 6 months of salary in the bank. this will get you through your slow period, which you WILL HAVE in the beginning...i think downpayments are at least 20%, but that may be for people with excellent credit, and not much debt. plan on MORE of a down payment.


If not buying, I know about truck leasing, but is not sure if that's a good option, given I will be driving it everyday.
leasing a truck i'd not recommend...sure, you'll get into a truck quicker, but the company will be in control of you every minute. they do after all, control the freight. i can only say "i heard horror stories" of lessee's, turning down a load, paid crap, but they still turn it down, and the company sat them for a while, and do not forget, they automatically deduct that lease payment each week, whether you run or not.....

All these thoughts are starting to distract me, but I am sure, I want to own a truck. I know it's early to make a final decision yet, but I am someone who tries to start planning everything as early as possible. I hope someone could advise me more about becoming and owner operator and financial options.
we DO HAVE o/o's here, i'd be guessing they would say save up MORE money for a down payment.

if you buy used, you MUST get it fully checked out, and dicker for a warranty, longer than what they offer.

i have read, from other o/o's, that going used at least establishes a credit rating in this industry, making it easier to buy new later on. it also in a way protects you from going bankrupt quicker, than buying new, with MUCH higher monthly payments, and higher insurance as well.

you can go to just about any website that has used trucks....take a LONG serious look, at all the NEW but slightly used trucks for sale.........heartbreaking....those people had dreams too.......

i'd also suggest you get "some sort" of business education. nothing fancy, but enough to understand business operations, book keeping.

then too, you will need money in the bank, for repairs.......

good luck, others that OWN trucks or HAVE BEEN a lease operators, for SOME TIME, will chime in....
 

ironpony

Professional Pot-Stirrer
Supporter
Being a owner operator really means you desire to become a business owner.

Do you have a clue about running a business? Do you have a business plan, or are you going to lease on to a carrier?

If you're planning on buying a truck, what do you know about truck maintenance? Do you know anything about the financial problems owning an emissions truck can dump on you? Have you done any research on what limitations a carrier might place on a truck you'd lease onto them?

You don't have any money. What happens if you run down the road into a $20,000 repair bill? Keep in mind that if the truck isn't running, you don't make money. If you spend money on your personal needs before taking care of the truck, you could be out of business in no time.
 
Thank you for replying with so much detail. About the money, I won't make the change until I have some of it, in fact, more than whatever is necessary in my account. My brother has been running an auto business for several years. He will help with business things a little for sure, but for myself, I realize I should take time to learn about everything. And about time, I think I am happy to spend whatever is needed as long as it pays. My family knows very well about my ambitions and my wife backs me more than anyone else. I know there is a lot to learn, a lot to do, but this is something I want to do. I will do it even if it takes a few more years than expectations. Thanks again for the wonderful help I got here.
 

mndriver

curmudgeon extraordinare
Supporter
Get your local library to request this book from the library of Congress.

You can't leave the library with it, but it will give you a chance to read it to see if you want to buy it.

Home Page

Yes, I do own a copy of it.
 

dchawk81

Well-Known Member
Thank you for replying with so much detail. About the money, I won't make the change until I have some of it, in fact, more than whatever is necessary in my account. My brother has been running an auto business for several years. He will help with business things a little for sure, but for myself, I realize I should take time to learn about everything. And about time, I think I am happy to spend whatever is needed as long as it pays. My family knows very well about my ambitions and my wife backs me more than anyone else. I know there is a lot to learn, a lot to do, but this is something I want to do. I will do it even if it takes a few more years than expectations. Thanks again for the wonderful help I got here.
I wouldn't put the burden on my brother unless I was prepared to pay him standard shop rates. It wouldn't be fair to him to be obligated to fix your truck to keep you in business while not feeding his own family during that time.

I wouldn't even pester him for too much business advice. He probably wants time off every now and then and has his own garden to tend to.
 

Rigjockey

In Gord we trust!
Supporter
You don't have any money. What happens if you run down the road into a $20,000 repair bill?
You know what you do in that case?
You sell or scrap the truck, Hopefully you at least made your money back.
Walk away and say, I gave it shot and lost.
 

ironpony

Professional Pot-Stirrer
Supporter
In other
You know what you do in that case?
You sell or scrap the truck, Hopefully you at least made your money back.
Walk away and say, I gave it shot and lost.
In other words you're another loser without a clue about how to run a business pretending to be an owner operator.

Don't step up if you can't keep up.
 

Rigjockey

In Gord we trust!
Supporter
In other In other words you're another loser without a clue about how to run a business pretending to be an owner operator.

Don't step up if you can't keep up.
:dunno::confused-96::thumbsup:
 
My company made this transition real easy for a few drivers. The O/O here have the business support to keep them from making first time mistakes that shut people down. there are ways to do it where you can have support
 

Mike

Well-Known Member
Staff member
The O/O here have the business support to keep them from making first time mistakes that shut people down. there are ways to do it where you can have support
Schneider offers all sorts of support. To the point of overkill really. They payroll deduct everything so you don't have to remember to pay your bills. They pull a maintenance fund out each week and tell you how you can spend it, and what specific brands of tires you can buy and when. Still, the failure rate is extremely high. Some people simply have no business running a business.
 

derekcook13

Well-Known Member
I already bought a truck myself. My personal choice is the Old School, pre-computer. My 1st step is already done, my 2nd is saving money to start my restoration project. The business side is not even on my mind right now, until the mechanical side is finished. I am doing all it myself it will take an entire year of work to finish the project. My goal is 27,000.00 in the bank, take a year off, do the truck and move on to step 3. I've filed for my LLC, don't have an employee # number yet. Step 3 would be to get the truck appraised. This would be if anything would happen I would claim the entire value of the truck.
 

dchawk81

Well-Known Member
I already bought a truck myself. My personal choice is the Old School, pre-computer. My 1st step is already done, my 2nd is saving money to start my restoration project. The business side is not even on my mind right now, until the mechanical side is finished. I am doing all it myself it will take an entire year of work to finish the project. My goal is 27,000.00 in the bank, take a year off, do the truck and move on to step 3. I've filed for my LLC, don't have an employee # number yet. Step 3 would be to get the truck appraised. This would be if anything would happen I would claim the entire value of the truck.
Good luck taking a year off, fixing up a truck, AND paying your bills with 27k.
 

derekcook13

Well-Known Member
After 6 years of working for the company, I started thinking about owning a truck. I am not doing anything too quickly, but in another year or two. At this stage I am thinking about mainly 2 things: 1. How will being an owner operator affect my work life. 2. Finance. I don't have too much of savings, which means if I am buying a truck, I need to get a truck loan. Even then I need enough in hand for a down payment. If not buying, I know about truck leasing, but is not sure if that's a good option, given I will be driving it everyday. All these thoughts are starting to distract me, but I am sure, I want to own a truck. I know it's early to make a final decision yet, but I am someone who tries to start planning everything as early as possible. I hope someone could advise me more about becoming and owner operator and financial options.
Good luck taking a year off, fixing up a truck, AND paying your bills with 27k.
That's the beauty of It, I have absolutely no bills. Family going to help me with a place to live, while I'm working on my truck.
 

derekcook13

Well-Known Member
If I where in your shoes, now the amount of time you got in is plenty. I would save as much cash as possible, that's for sure. The guy I'm working for Pay's me cash, so saving is easy. Started mid January and so far I've got 3,000.00 saved. I'm happy
 

derekcook13

Well-Known Member
With options avaliable, you might be tempted to loan this and borrow that. Which is fine, but you'll have to wing yourself off somebody else's money. In truth your just borrowing your own. Cash is King.
 

(((ME)))

Well-Known Member
Advice given with no charge.
Do not hand your pay checks to a spouse. Stay out of debt. Save for a rainy day.
A good business head make all the difference between success or failure. Any type of business adventure is risky at it very best.
Make sure all equipment or machinery is paid for up front and in full in good working condition.
Working capital $75.000.00 with $50.000.00 in savings and debt free.
Lastly you need the guts, blood sweat and tears to run with it.
 

mndriver

curmudgeon extraordinare
Supporter
Advice given with no charge.
Do not hand your pay checks to a spouse. Stay out of debt. Save for a rainy day.
A good business head make all the difference between success or failure. Any type of business adventure is risky at it very best.
Make sure all equipment or machinery is paid for up front and in full in good working condition.
Working capital $75.000.00 with $50.000.00 in savings and debt free.
Lastly you need the guts, blood sweat and tears to run with it.
Business advise like that, no one would ever start.
 

(((ME)))

Well-Known Member
Business advise like that, no one would ever start.
Why not I did it twice....owning a construction company first time and a automotive garage and towing service....which in turn bought a apartment complex....which was in operation for over sixteen years. So I do know it can be done.
 
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