Buying someones authority?

Why go to the trouble? It would be cheaper and just as easy to start with a new MC. Inactive MC will be redflagged to any potential customers the same as a new MC that hasn't hauled any freight. I see ZERO upside to this unless the guy is also passing along some good contract freight with this MC. Then of course the price for his MC will reflect that. If he is not offering that - it's a waste of time, effort, and money.

 

If it were active and had a good history, especially with some direct gigs included, sure it could be worth it. But it's not hard getting loads with a fresh MC. When mine was new the only place that wouldn't load us was JB Hunt- they wanted 6 months for a fleet.

Q: What do I need to do to reinstate my Operating Authority (make my MC Number active)?

A: You can reinstate your Operating Authority by requesting reinstatement of the authority and paying the $80 fee. This can be done over the Internet at https://li-public.fmcsa.dot.gov/LIVIEW/PKG_REGISTRATION.prc_option and paying with a credit card. If you do not have access to the Internet, you may send a written request for reinstatement of the Operating Authority, listing the " MC " number, the legal name of the carrier, and include an $80.00 fee by check, money order or credit card payable to FMCSA. The mailing address for a check or money order is FMCSA, P. 0. Box 70935, Charlotte, NC 28272-0935, overnight address is QLP Wholesale Lockbox NC0810, Lockbox #70935, 1525 West WT Harris Blvd, Charlotte, NC 28262.br>You must make sure your insurance company files the BMC-91 or 91X and/or BMC-34 (if necessary) to meet the proof of insurance requirement. You must also be certain that you have a valid Designation of Process Agents (BOC-3) filing in effect. Your Operating Authority will not be reactivated until updated insurance filings have been received and accepted. You will receive a Reinstatement notification from the FMCSA after the Operating Authority has been reinstated.

Source: http://www.fmcsa.dot.gov/about/other/faq/faqs.aspx#question16

 

wouldn't it be a good idea to also look at the csa of the operating authority????

and besides maybe getting the good customers. what would be the advantages? disadvantages? (if any). and the cost between used and new?

 

There is a fee for transferring authority that is charged by the feds. If the authority was active it might be worth it to pay for an active mc number if he has business that goes with the authority. If not, there is really no advantage to buying someone else authority. By the time you pay for everything, you could have gotten your own authority for less money.

 

There are a few brokers who want new carriers to be in business for a minimum amount of time, but for the most part, it won't make any differencee how long you have been around. The main thing that they are interested in is whether you have active authority and insurance. They may also check your CSA score, but that takes time to build. If there is nothing on your CSA, that is good. A new carrier should not have any points in their CSA score.

 

is insurence chaper for a 12 year old authority?

 

Insurance companies dont want new companies to grow fast because "statistics" show that more claims happen in the first 2 years.

 

There are a number of factors that effect insurance rates. If a company has been in business for a few years with active authority and have a good safety record, it might help your rates. Insurance companies seem to place more emphasis on driver mvr's and experience than any single factor. Insurance companies don't like paying claims. Drivers who have a clean mvr and CSA scores are less likely to file a claim than those with limited experience.