Ok, here it goes. I'm looking at my options to get something going and am thinking of starting out by leasing a truck. My question is this, what will the process be that I will have to go through. Paperwork, do they lease trailers, any decent brokers here in NC. Mabe even a website that can explain these things and the thousands of different questions I haven't thought of. The economy sux right now and am not looking to jump in just yet but it's getting close and I'd rather have my homework done. Are you under thier athority since they prvide the base plates. What are the cost vs potential income, etc. The reason I'm considering this route is

A.) not enough money to buy my own truck
B.) I don't see it happening with me staying a company driver
C.) My employer right now mentioned how much he saves by to havening to sink money into, say a new engine every time the truck breaks down and them bringing a new truck to keep you rolling is a nice touch.
D.) After seeing what my friend when through with his truck, I beleave my employer, lol. Actually sad, my friend lost his butt on that truck.

Eventually wanna go under my own authority but not just yet. One step at a time

Any help would be appreciated, thx.

 

You have to have your own authority or be leased to a carrier. They run about 500-650/wk plus a mileage charge of .08 to .12 a mile depending on which location. I've rented from both under United's authority. Penske has nicer equipment. I was spending at least $750 a week on the truck alone, if that helps you calculate fixed costs. That did not include insurance.

 

Thats a good start. Answers 2 questions prety much. I'm sure they will answer some as well but would rather hear from the forums since I will get the great from them and some of the good and bad from you all

 

I have rented a truck from Penske when one of mine broke down. I think you will have a difficult time making any money leasing to a carrier and renting a truck from them. I only rented a truck for a week to fulfill my obligation on some loads. I believe I spent just under $800 for the week. You can't afford to pay out that much money and make a profit as an owner operator. It will also be difficult running your authority and paying out that much money each week. They do have longer term leases or rentals that are less expensive. It isn't the weekly rental amount but the mileage that runs the cost up. This depression is likely to last for a while. Whether you lease to a carrier or run your authority you will likely be running for lower rates and have access to less freight than only a year ago. If you can't afford to buy a truck I would not start out by renting a truck from Penske or any other rental company. There are leasing companies who lease trucks to owner operators and carriers for much less. At the end of the lease you usually own the truck. The kicker is that you will be responsible for all maintenance and other expenses running the truck. The one advantage in renting a Penske truck is that they take care of the maintenance. If the truck breaks down they can get you another truck to keep you moving. I just don't think it is worth $2,400/month for them to take care of the maintenance. In addition, I don't believe they rent trucks to individuals. I rented one through my corporation. In order to qualify with them you need good credit unless they have changed their policy. My advice is to save your money and buy a truck out right. There are some good buys around right now. If you have a good relationship with a bank or credit union you may be able to get one financed and save yourself a lot of money. I have seen trucks selling for as low as $5,000 that appear to be in decent shape. I was thinking about selling one of my trucks. After calling a couple of dealers I found that I can't afford to sell them. They aren't worth anything so I will just keep them. My trucks are in good shape. I know that there are others on the market you can buy for next to nothing. For what you will pay to Penske in a few months you can own a good truck outright. I don't see how you can make any money paying that much money out in this economy.

 

i looked in to this a while back. its not worth it. i looked at ryder, penske, paclease, and ideal lease. they all said the same thing your payment depends how much you put down. so your payments could still be $2000 a month then miles. to me i'd rather put that in to a truck you own out right. who knows you might be lucky have a truck that dosent break down as much pay it off and make some money out of it.

 

BC,

I know you did this kind of deal when you ran HHG. But be honest, was your success not due in large part with you having inside contacts? ( Your Mom and Dad working for the company you leased to? ) Did you get the "high profit" loads over other drivers. I'm not saying you did or didn't and I think you will be honest with us on how you paid this high rate and came out to the good. I won't begrudge the fact if you did. I have done so myself over the years. Just don't lead someone down the wrong path.

 

I had the same thought when I was a company driver, so I called the local Penske branch and the first thing the guy said on the phone was YOU NEED TO HAVE YOUR OWN AUTHORITY. So, I bought my own slightly used truck with $1,000 down from a truck dealer. If you want to get your truck, try to find a dealer that would agree to give you cashback at signing. Of course they add that amount to the purchase price, but it makes it possible for first time buyers to get behind the wheel of their own equipment. I'm not talking about a new truck. Mine was a 2004 International that I got in 2007. "Where the determination is the way can be found". - George Clason.

 

My initial start was at an agent my Mom was a coordinator for, and I'd lease in the summer months from mid May through the end of August during peak months. Otherwise, on a yearly basis, renting a truck isn't profitable. That is why you see a lot of rental tractors pulling bedbugger trailer during the summer months. The last summer I leased before going with another agent (that neither parental worked for) I grossed 85,000 in just under 3 months. They key was doing a LOT of shorthaul and local work, and working my butt into the ground. At my busiest, I'd have 3 trailers loaded for different destinations and would deadhead back to get the loaded one, drop the empty, etc.

Keep in mind, I said gross, not net.

But, on topic, Paclease is also a similar rate. I think I was quoted $550 a week and 10cpm at the time. I wouldn't advise renting a truck without the proper contacts in place in any niche. $3000 is a lot for fixed costs in an economy like this when you don't have shippers or a gig like I had lined up.

 

ty all, gave me some insight as to what I'd expect leasing. As you siad bandit, I don't have any brokers or contracts right now so thats something I'd need to do research into also. Right now I'd have to go in a direction that would involve lease purchase or something that don't involve putting to much down. Unfortunately I have some credit problems from years back. credit isn't REALLY bad but not extramly good eather. I wouldn't qualify for a 0% down. So guys and gals, we ruled out penskie and ryder, what about those places that specialize in selling trucks to first time buyers? I do have preferences to frieghtliners, volvo's and internationals. I don't care whats under the hood, mainly looking for what will cost less in repairs and fuel to start me in the right direction so I don't have to sink all my money into repairs and fuel and can sink more of it into the bussiness. I prefer OTR but can deal with local or intermodal to get me started if needed. Even though the economy is down I've noticed the ports here in norfolk and portsmouth are still busy. The only companies advertising need for drivers are the ports localy. Might be a good idea to apply for my twic, at least I have my hazmat so the cost will be a little less.

 

These times are doom and gloom. I also thought about trying to get my own truck, but when the economy went south, I quickly forgot the idea. If lots of o/o were losing their trucks, how would I hope to do better? I think it wouyld be best to wait for a better economy, unless you have good contacts to line you up with plenty of freight that pays well. They say economy is getting better, well, I look around and think, WHERE?