Jay Neal . there better ways to do it. You are still tide down with a company. so technically your not a owner operator just a lease operator. not the way to do it. You think you are doing fine. see what happens in the future. most guys never get the truck.
No it's not. A scam is something crooked...a lease deal is put in front of you in black and white and no one twisting your arm to take it....a lease deal simply.... YOU AGREE TO PAY X AMOUNT OF DOLLARS A WEEK FOR THE USE OF THAT TRUCK... PERIOD. A COMPANY AGREES TO PAY YOU TO HAUL THEIR FREIGHT PERIOD. AT THE END OF THE LEASE YOU TURN IN THE TRUCK AND REPAIR ANY DAMAGE THAT OCCURRED TO THE TRUCK WHILE IN YOUR POSSESSION AND REPLACE REPAIR THINGS SUCH AS TIRES THAT YOU USED UP. A LEASE PURCHASE IS ALSO IN BLACK OR WHITE WHETHER IT'S A GOOD DEAL OR BAD DEAL IS FOR YOU TO DECIDE AFTER YOU READ THE TERMS AND DECIDE TO AGREE TO IT OR NOT. FINANCIALLY THERE ARE PROBABLY PLENTY OUT THERE THAT ARE BAD DEALS... BUT YOU REALLY CAN'T DECIDE THAT UNLESS YOU DO THE MATH ALL THE WAY THRU.... WHAT'S THE FINAL COST OF THE TRUCK COMPARED TO A BIG DOWN PAYMENT AND AS LONGER TERM LOAN THRU A FINANCE COMPANY OR A BANK 3-4 YEARS OF A LARGER PAYMENT MAY BE LESS IN THE END THEN A 5-6 FINANCING. AND IT ALSO MEANS YOUR OPTION TO SELL AND GET MORE FROM THE TRUCK ON TRADE IN IS AN OPTION TOO... ...IF YOU GO TO JOE BLOW TRUCK LEASING WHO OWES A FINANCE COMPANY OR OTHERS MONEY AND THEY HOLD LEIN ON THE TRUCK THEN IT'S A BAD DEAL BECAUSE IF JOE BLOW DON'T PAY THEY CAN TAKE THE TRUCK EVEN THO YOU'VE BEEN PAYING ON IT TO OWN IN... ALWAYS DO A STRAIGHT LEASE WITH NO ILLUSIONS OF OWNING THE TRUCK UNLESS THE PEOPLE YOU'RE DOING BUSINESS WITH HOLD CLEAR TITLE ON THE TRUCK AND IT'S NOT COLLATERAL IN ANY WAY AND THAT THERE IS LANGUAGE IN THE CONTRACT SAYING WHAT THE PRESCRIBED ACTIONS ARE GIVING YOU PROTECTION IN THE EVENT THEY WERE TO GO BANKRUPT OR SOME OTHER TYPE OF JUDGMENT LIKE TAX LIEN WAS IMPOSED... ALSO GET YOURSELF BUSINESS INSURANCE . MOST SCAMS ARE PEOPLE NOT DOING THEIR HOMEWORK AND NOT TAKING THE TIME TO THINK AHEAD OR TALK TO PEOPLE WITH EXPERIENCE OR PREFERABLY A LAWYER IN THE FIELD.
I can see how this is good information. I’m just sick of working for people . I’ve saved money for the past 3 years . I’m just gonna get my authority and if I fail atleast I own a truck and can go from there . Who knows I may be blessed and be one of the rare few that makes it 😂
Mark Bush I agree with the first statement. I’ve heard of people hiding the truck and putting the last payments in escrow. Then going in company till they settle with the bank. If no payments were ever made that might not work out well though.
Hi Buddy, thank you for your information, I appreciate you take time to make this video available to new truckers. And steps to take to ward a successful owner operator. Thank you again and be safe out there
I’m a truck driver, in the oilfield as of now, I have been thinking about going into the expedited trucking path. Let’s say u start off small, an expedited van. A sprinter. Pay it off building your credit. It’s my goal to get into a straight truck with the large sleeper. With no bissness credit, the down payment will be huge. But buy paying back a commercial loan on something smaller, paying the fuel, tires my credit with the banks will go up, and that down payment over time will decrease.
I don't like that plan. I would look for the best opportunity doing what you want to do and start there. If you can't save money to do that, business might not be right for you. I'm building my business credit as I go.
Just bought my truck in October, I'm doing well leased on to Crete. This does have good advice, but o would add to save 30% of net for taxes and have $.10 a mile taken out for maintenance fund, I'm estimating I'll have the truck paid for in 2 years instead of 3.5
I agree. I leased with landstar then went to greatwide. Greatwide pays more and I still pulled Landstar loads. Had to use Greatwide a few times to help with repairs on my truck. Was a lifesaver.
Save save and save dont come out of the gate with a payment !!! First truck 15 to 20 thousand run the shit out of it save save save then get your glider
This is what I did. I earned the trust of an old man, he had a little money, and his friends had a little money and I’m in the oilfield we’re this kinda thing flys
Awesome vid... I like my plan save 50k-60k put 25k down on a used truck keep wats left for maintenance, trailer rental, startup/authority insurance. Oh tip if u can't manage money, business or save then the path to independents as a trucker own carrier will be difficult
Hi Got truck for sale volvo 2013 cummins engine manual transmission. bought 2 months a go but my driver needs automatic transmission. serious buyers leave your information. Thank you.
I still like Mercer.. I am saving my money for a good used truck.. I currently have a really good job but with a little more work and a little more responsibility I can make a little more money. But also an opportunity is a back home where I grew up at in North Carolina I currently live in Omaha Nebraska and I know that I 80 is a good lane.. Detroit and Buffalo. I have 0 debt right now in Life
Thanks, I like how you said save your money 20 to 30 thousand dollars, I seen a alot guys go broke trying to start a business with no money in the savings account,
I’m just curious, when a driver has his or her own authority (compared to all of the options mentioned and not mentioned in this video), he or she can come and go like they please? For example, say I only like working for 3 days out of the week to spend time doing other things. Can I do that with the other options? Or will I be “binded” to a company’s attendance and performance policies?
Great video land star is a good stepping stone to start out with but you will find out that there are carriers out there that pay way more I currently own my own truck I lease a trailer and make 88% of the line haul it's pays more and I don't have my athority . Getting your own athority is good if you plan to open your own fleet of trucks but if you are a solo best not to because it will cost you more to do so.
I think Landstar is a good start for people as opposed to leasing on to a mega fleet mileage based contract. The small percentage based carriers with self dispatch is the best model to put cash in the bank before getting one’s authority.
So here is the question. I have asked and been told it is impossible to do it this way. Cant be done and so forth. Here it is. Honest opinion. I currently work in Law Enforcement and after 34 years I am looking to retire. I have been contemplating going into the trucking business for a while. So here is the issue. I don't have a CDL as of yet. No experience. Last time I drove a truck I was in the Military pulling heavy equipment with a Gooseneck trailer from 89-93. I don't plan on going to C.D.L. school. Too much time. I have a friend who has his own authority and I will pay him to practice and use his truck to get my practical exam done. I am in Georgia, I need someone with their own truck and authority to take the practical. I have done a lot of research and have an idea of what truck I want. Also looking at getting into step deck. Because I would be knew to the industry as a driver and a Owner Operator I have considered getting into the industry under my own Authority. I figure either way I will be considered new, why not start all the way, new driver, new Authority. I have about 75,000 In capital. I figure I can purchase a decent truck or put a good down payment. Lease a trailer and either lease on or hit the D.A.T. board on my own. What problems and or obstacles can you point out. If I had my own truck, do you know of companies that would contract a new driver. I am in a position where I can retire when ever I want. But I am beginning the planning phase for a transition into the trucking industry. Why I want to do this. After 30 years of working for someone else I want to work for me at my pace and make a decent living. I enjoy driving and intend to dedicate myself for 2 years of hard driving to get my business flowing. Long term I would have to evaluate whether to lease on, Own Authority and if possible bring in one or two more drivers.By the way I wrote you because you are one of a few people I follow that seems to have sound advice.
They way I c it is it would be like training wheels, less Expence, less risk, while building relationships and getting my authority., learning to use the load boards, etc.
Great advice!, Iam thinking about getting my own authority but alot of people are suggesting I hire different people for payroll, tax accountants and iam unsure about how much the costs vs rewards! I own my truck
My friend did a lease with O/S witch is called WilTrans and they marked the truck up by $40,000 dollars on a 4 year lease at $979 a week payments that he can not pay off early. It is a huge rip off. You are giving great advice!!!
Yes prime will refuse any extra payments on principle unless your paying 100% of remaining balance. I'm trapped now but I will have enough saved in a few weeks to refinance with my bank.
When setting up my Authority, do I have to have an intrastate account for every state too? I’m not referring to the NY-HUT, KYU, NM or Oregon Weight-Distance Tax Permits though. I’ve been unable to get clear info on intrastate accounts & I’ve been looking EVERYWHERE. Some say there are 29 states that require an intrastate account even if you’re just traveling through. Some say most truckers just ignore this and kinda hope for the best. Others say you just need it in your home state. Does anybody know for sure??? Thanks in advance if you can help.
You are also supposed to register and pay the minimum corporate tax in each state you run through as a corporation but no one does this. Its all a money game. When you get to a certain size, states start looking at this stuff to get revenue. One truck operations fly under the radar.
One quick question: when you own your truck and lease it on to a carrier: can you walk away when ever you want if that carrier is not working out for you?
You can work as long or as short as you want. There may be some penalties depending on the contract. There will definitely be a cost. Examples of cost: you pay to put stickers on your truck. If you run their plate you might not get refunded what you paid for the whole year, depending on the agreement. You’ll have to return any rented trailer and bobtail home. You might not get your insurance or fuel deductible back. You don’t lease yourself to a carrier without doing your homework first. The cost and down time to move the truck to another carrier could be $2,000-$5,000 each time you do it.
I'm not going to lease to someone big I just can't see making money at 65% plus paying for fuel etc. I have my truck and buying a older trailer and leasing on with Kenny in April and learning all I can from him before getting my own authority
Columbia Glider Dave I will call you sometime Tuesday if you have time to go over this subject and a few extra questions I have. I do know I'm absolutely dead set against leasing on to a company like landstar 65% is just to low I want to bring home more than 1k a week after expenses
Travis Christians you kind of already are doing step one already. You just haven’t had to call anyone to negotiate loads. If you can survive on the numbers you are currently doing, you won’t be in too bad of shape while you learn the DAT load Board and negotiating.
My numbers are reflecting your thoughts as far as I would keep more of the gross with my own authority. That would put me at the net income goals I perceived. With the time and miles I wanted to cut back from as a company driver. What ideas did you have in making this decision?
I don't know where you are in the process. If you are looking into a lease purchase, I would recommend you don't do it. I think from company driver to having your own authority can be done with the least amount of risk following this 2 step plan and taking 1 year at a big fleet like Landstar or Mercer. If you can succeed there and acquire a Trailer in that year, Step 2 looks even better for you AND the small fleet you find to lease to. build your bank with the small carrier paying 80% or better including cargo and liability. If they charge this back the percentage should be higher. I would attend a Mid America Truck Show and speak to Mercer and Landstar drivers as well as the companies themselves at the booths. I would recommend joining the trucking with authority group. You can get great information there as well as find out about the You Drive U Conference you could attend when the time is right to network into the right small carrier. After 1-2 years at step 2 you will have learned enough to get your own authority and do it right.
Why take on the expense of your own trailer if you’re still gonna lease with land star? As you said, you’re transmission goes down and you gotta get back to your trailer...
Fatal Ritte2 It was a numbers decision. The 7% extra revenue more than paid to run the trailer. It generates a few hundred profit per month and buys a trailer. Obviously if you have to chase your repowered trailer it will cost you money. This expense is more than offset by the equity you gain in the trailer. Trailers still hold a third of their value after 7-9 years. Also, by having a trailer, (when you are ready to), you open up opportunities at smaller carriers. You are ready to work and don’t have to wait for, rent, or lease other people’s junk.
Michael Gary I’m still a sole proprietor. My revenue with equipment depreciation and deductions didn’t require an LLC for the first 3 years. I’m out of depreciation and looking to net quite a bit in 2019. I’m setting up the LLC taxed as an S Corp.
I have my llc sub chapter s, and I’m saying that to get your opinion. An I missing something, your opinion is valuable to me and would be greatly appreciated, thanks in it for the long haul
I don't have an opinion on this yet. I'm a sole proprietor. I was told to set up this way to see what I net first. Looks like I'll be an LLC filing as an S Corp as well.
I would never lease purchase from any company there all scams, they make you sign promising to only work for them so if the work slows down and you don’t make the money to make the payments and there goes your truck
The new scam is, they tell you, you can take the truck to another company. The other company has to be willing to make the payments directly to the company that gave you the truck. 95% of company’s will not do this. In other words, you can’t take the truck somewhere else. Schneider makes it pretty easy to take the truck.
I have 15k saved right now and am serious about getting my truck.. I'm considering local Intermodal with my current company tho. Im pretty nervous I'm only 24 with no guidance, just other owner operator advice. Hopefully in the next 6 months I'll be in my own truck!
Danny D I don’t know much about intermodal. I do know that you can be taken advantage of in the oil fields and intermodal for the same reasons. If you don’t know your cost of operation and/or you don’t know where in the food chain your opportunity is coming from, you will be leaving money on the table. In the pad wrap world, I’m just now weeding out all the middle men I’m working with. The less hands in the pot, the better.
Ronald L Edgerton he had no legal right to the truck. It was a lease purchase. That is the whole point. He did not have title to the truck with a lien. The bankrupt company made no payments more than likely. If you can’t get a liened title, it’s a risky way of buying a truck.
Prime and all those mega carriers are a bunch of scum. Stay away from them if you can. If you need them for experience, then do it for a short time and get out asap. Never ever lease from one of these con companies unless that's your only option. All they do is rip drivers off, and take advantage of inexperienced drivers ignorance.
Phlacc I think you mean repowered, or power only. A repowered load is when a trailer gets dropped and another truck takes it to delivery. A power only, is a load that only requires a truck and driver to pull their trailer.
Peter Roper he have an Email blast with pad wrap/liftgate/ramp brokers. We can book just about what ever we want from what ever load board we want. Top level DAT is given to us free as part of the 20% we pay. We can build our own lanes and relationships or build on what already exists.
Columbia Glider Dave I'm currently running the Dat board myself, but my percentage isn't where it needs to be.... So am looking for a better place to call home...
Peter Roper 80% is just part of the equation. Cargo and liability is included in that 20%. We are set up with a whole lot of brokers and always adding more. The next piece is to stay in good lanes or build relationships in the lanes you prefer. It is possible to come into something like this here and fail. It’s what you make of it that determines your success.
I think you need to research your prime story a little more, 2 payments left and they gave the truck back really ? In the first place that doesn't seem like the way rob low would do someone secondly their are legal avenues to take in those situations number one thru mediation two pay the damn truck off i'm sure that was an option with only two payments left, as far as the tires, every lease or lease purchase requires you to have a maintenance and tire fund... you got it new with new tires you don't get to use them for free and turn it in without paying a prorated amount x amount of dollars per 32 of tread... the cost of the tire divided by 32 ... its the same when you lease a car or an apartment you turn it in good condition or pay, there's nothing untoward about that. Freight pays the same no matter what company you go to, ( of the larger carriers prime landstar etc) all haul the same stuff for relatively the same rates, what they pay out percentage wise is also relatively the same differing a few percent depending if it's your trailer or theirs. The large carriers for most of their freight are the brokers and they are to the owner operator the factoring company and also your permit/ and authority yes sometimes they have freight thru subsidiary brokerage they own so there's another few percent gone or thru an outside broker. So that 25 -28 percent they keep is just about equal to what you'll pay out in brokerage fees and factoring company fees and accounting fees and the big one INSURANCE if you go fully independent with own authority and plus you get to either do all the paperwork and taxes and dot filings yourself or pay someone to do them.... the large carriers and lease deals are PLUG AND PLAY and offer an opportunity fot drivers who want to become an owner operator an easier door in where they will get to learn about it without as much risk as going out and putting a wad of money down on a truck and jumping in feet first. Ot also offers a company driver the opportunity to make more money especially with elogs these days ( which hinder all our incomes) because a company driver is at a fixed rate and with elogs 40cpm x 3000 miles 1200.00 bucks a week gross is all you get... leasing at .72 percent in the right place right time and you can run half those miles and make that much. Those fixed rate leases are bad especially those that say like 1.10 per all miles plus fsc.. that load could be paying 3 bucks a mile... fot those who always say well your paying for the truck and never going to own it... so what ... that's why it's called a lease NUMB NUTS either way your paying for the equipment...3 or 4 year lease with higher per month payments is the same as your truck note for 5 or 6 years with all your interests you pay you'll pay double for that truck... well those lease companies are making money off that truck... so what that's called BUSINESS NUMB NUTS... do you know anyone that would go out and buy you a brand new peterbilt and give it to you with no credit check and no money down and not expect to make some profit off the deal ?? The fucking bank or finance company is making twice off of you that the leasing company associated with prime is making off of me SO NOW WHO'S THE DUMB ASS ? Prime is a good place to start for those of you wanting to learn and get started in the business regardless if you want to be a company driver or a lease operator and they have classes and doors open for you to go as far as you want, take their ACE 2 CLASS as soon as you can , you can take other outside courses too in business and brokerage etc.... no company out here is perfect... neither is prime but he does have a good company with good paying freight and a good safety record and equipment...i don't worry a bit about being cheated on my money and i've never felt like i was being scammed... tho you'll have people outside tell you that every day... but they don't know a bit about how the deal works or what the freight pays etc.... at prime they and the leasing company will lay everything out in front of you.. the deal is in black and white with no trick clauses and no one twisting your arm to take it... ...if you're not sure then stay a company driver until you get a better understanding of it... there's no question they won't answer... but if you're the type of person that doesn't understand business and cash flow and profits and cost and think because prime and the leasing company are making money too that they are ripping you off or you go thru life thinking everyone is ripping you off then you need to get your head straight and change your mind set because it's business.. no one conducts business not to make a dollar , and the video maker started off taking about a company that went broke.. WELL.. so i don't have that worry at prime they know what they have to charge for the trucks and the type of money out there on freight they have one of the best if not the best discounts on fuel and the owner is very diverse in other ventures so i know he isn't going belly up anytime soon and if they needed to make more money he wouldn't have to try and secretly rip to off somehow, they'd just change the rate people pay for the trucks or the percentage they pay and it would be right in front of you as a deal that you could take or leave. Anyone who tells you they were at prime and leased a truck and then couldn't own it and makes it out like that got shafted is lying to you because it's a straight lease with no ownership implied unless you do an ace lease and put money down on a truck and either way it's all in black and white.... at the end of an ace lease as long as you made your payments you'll own the truck... ...if you do a straight lease when you turn the truck in you'll get all the money back from what's in your maintenance and tire fund minus anything for repairs or tire tread... so if you take care of the truck and don't turn in a piece of crap you didn't take care of you'll get a sizable completion check... which you can take and put in the bank or roll over on a new truck and do an ACE lease to purchase a truck. The system, the equipment, the freight are good at prime the only thing that really sucks is its all set at 65mph.. and that you just have to live with.... i've only ever had problems with a fleet manager and they will let you change to a different one no questions asked..... is it all sunshine and puppydogs am i getting rich ... no....have i had some bad weeks you bet.... have a had long periods of good steady money you bet..... you'll find ups and downs any company you choose...i came here in 2010 with a let's see how it goes attitude and the knowledge that the door i went in also opened to go back out too and i could take my experience and work ethic and go to any company i choose and they know the same.... so if youjust getting started as a student or first or second year driver they are a great place to start or if you've got the experience and want to take the next step to o/o they can get you going... and if you think there's better or it don't work out just move on... that's all you can really do at any of these companies out here.... get you feet wet and if it ain't right for you move on... no big deal no theatrics or hard feelings it's a job not a marriage.
ARTHUR D DUDA clearly you don’t understand the numbers. My $47,000 loan at 8% at 36 months costs less than an over priced prime truck that you never own. I have a $30,000 asset that can be run payment free for two years in July. By running my own trailer I also capture more revenue. It cost 4% to run my trailer out of the 80% I get. Since it’s my trailer, I can spec it with the equipment I need to get the higher paying loads too. I would urge you to learn the difference between a loan and a lease. If you don’t understand the risk, you shouldn’t be in business.
Good god what a paragraph, but you lost me at “rob low wouldn’t do that” why the hell not they have been robbing dipshits since the 90’s! Gtfo with all that shit.
@@Halfstep2024 Prime fanboys think they're different than anyone else and they ARE NOT getting ripped off. Only other companies rip off their "numb nuts". He is fond of that phrase.
THIS IS #MAGA COUNTRY because I can book my own loads. Find my own customers. Build my own relationships. The owners understand business and can help build up any weak points in one’s game if open to it.
I found mine in the truck paper. I found a few fleets that were turning some in. I found out were these fleets ran and were their trucks wound up once you have a bead on a good fleet, find the dealership that has the largest selection of them. For me it was FYDA freightliner in Youngstown. They don't have any at this time.If I was looking today, I would call Paul Miller in PA and ask them if they will be selling any of their Coronatos. I would also call Grand Island Express and see if they have any left in thier fleet that they plan on trading out of. Of course you could also go to Schneider. I hate orange though lol.
There's no way prime could buy out a company that was in contractual obligations of selling a vehicle and then cancel those contracts after taking ownership of that business, those contracts would be what they bought... it would be like a bank buying the bank you have your car financed thru and then coming and taking your car without cause.... so either who you got your story from is full of crap or they had one put over on them by the people they were doing business with and the lease purchase was not a legitimate legal deal to begin with... ...if they owed prime money and couldn't pay i'm sure it involved legal action they a court for prime to take possession , unless they just up and sold the business to prime , ...if that company had a legitimate business to sell trucks thru a lease purchase there should have been language in the contract covering default and your friends should have read that and there should be avenue of legal recourse especially if they only had to payments and no balloon to pay... they were either foolish and didn't get a lawyer to read the agreement before they signed it and/ or they were foolish not to get one while this was happening and put as lien on the title of the contract had guarantees of ownership in lieu of default by the company..... since you didn't mention lawyers and specifics i'm guessing they didn't take legal action... and if i damn welll paid a truck off except for 2 payments and i had a legal leg to stand on you can bet there'd be legal action or a shotgun involved... since they didn't or you didn't mention legal action i'm guessing their story or your story is bullshit passed on like a truck driver story out here.
ARTHUR D DUDA the owner of Patriot Star is friends with this couple. Obviously you don’t understand the difference between a loan where you have title to the truck with a bank lean, and a lease where you have no legal rights to the equipment till the truck is signed over at the end. If you have no learned title you have no rights to the truck, even if you are paid in full. Go find any Arrow Flatbed guy, or New Century driver that lost their lease purchase when the companies went bankrupt. It’s fact that this is one of the primary reasons why a lease purchase is so risky.
Sturm breakers how can you make that statement? The difference between one contract and another can be night and day. Not having a title with your name on it , albeit with a bank lien, is very risky. Why would you sign a contract that takes away your rights to the property? It’s the same thing as when carriers sign Broker agreements. You have to edit out all the bullshit they add, or changes that take away your rights under the Carmack Amendment. Two carriers could each have a contract with the same broker. If they each had the same freight claim, the one with the better contract gets the better result in resolution.
I bought truck from dealer The LG express got for me load from mo to nj $2300 . He change the statement He made fake statement He told me I got the load $2300 When I called the broker. I told him hey broker I’m owner operator. How much was load price. The broker told me $3800 When I arrived at nJ I said to fucking company. I’m out from your company. You stole my money
Rayan Agarm it was priced right. I also got to get a dyno, blow by test, 3rd party inspection, and a charge air test before I bought it. Too many reasons to buy where I bought this, than to by a Western Star or Cascadia Glider from IA. That would have been my second choice.
