Own Authority vs Lease on company

I found a great company to lease to, and do better with them then with my own Authority when you figure in all of the headaches and costs associated with going fully independent. And if you have not been a truck owner for very long, leasing on may be a good way to start.

And yes, I have had my own authority, it is currently parked.

 

FMCSA & paperwork are no big deal. Lots of resources are available for the one man dog & pony show. If you're organized and stay disciplined with paperwork, it's pretty easy. If not, leasing on might be your best route.

 

How much money do you have in the bank, and how will you get paid and pay for fuel? Like Scooter said, set up is easy, it is the rest of the stuff that will make or break you. Do you have a way to find loads? Will you do that, or someone else while you are rolling? More to this than just getting a DOT number. And how is your truck? Is it healthy? DPF/SCR system or non EGR? Who will do the maintenance on her? You or are you going to use dealers and shops to take care of things?

 

I decided to get my own MC and said screw it to leasing on.

The paperwork is NOT MORE THAN what you have to do at the end of the day.

Think about it for a minute.....(about 60 seconds. STOP). Now, every little thing that own MC requires, has to be done even when leased on. IFTA (record it), Maintenance (must provide records to Carrier), Logs (must submit to carrier)....and at the end of the day, You still share revenue with carrier -- remember, you are borrowing their authority, so you are UNDER THEIR THUMB.

The whole concept of being "independent" O/O while leasing on is a oxymoron.

Keep track of your paperwork, farm out the collections (factor?), join consortium, maintain records (which you HAVE TO DO *REGARDLESS*) is easy.

Leasing-on is for people who dont know/cant negotiate rates or have business acumen i.e. find loads/run p&l, to stay afloat (my 0.0002cents).....OR...dont wanna be bothered to earn their final 25% of the load (so they "farm" that out to the carrier's back-office)

 

How long is your long run?

Lease on @ 25%: every year you generate a gross of $100,000, you give up $25,000 to the carrier.

So, 5 years leasing on, you give up $25,000 X 5 = $125,000.

If that too much to give up? It is to me.

Take "long run" to be 10 yrs. Then 25K X 10 = $250K (a nice retirement nest egg, if you are above 55 yrs old)

 

Keep thinking you know everything, but you really dont. Your saying because I'm leased on I don't know how to negotiate..? When you add in the fuel discount, insurance discount, tire discount, no sales tax on purchase discount, and full payment of load within 1 or 2 hours of completion... I'm leaving out a couple other things... Your really not to far ahead...

 

Why do you think I KNOW everything?.....Dude!!...take a chill pill.

I DONT KNOW EVERYTHING...

something I said that rubbed you raw?

 

This is what rubs me wrong.

 

The last part, should cover you (and not in a negative way).

You are giving up 25% (so as not to deal with back-office stuff). Nothing wrong there. It's just how you choose to "not be bothered" with it.

There are more fun things than back-office stuff, like say, running harder, fishing, avoiding audits etc. I suppose that's you...again, nothing wrong with that.