It's a Team's Life
Owner Operator or Driver
Owner Operator
If the decision is made to be become an Owner Operator with the company that fits you the best, find out what they require from the truck, cargo box, and equipment you will need. There are several reputable straight truck and van dealers that know the specs for each company and can assist you in getting a truck. One thing to keep in mind is that you are looking for a truck that will make you money by getting good fuel mileage and will not break down. A salesperson is looking at resale value and sometimes these two ideas do not mesh well. A very important thing to remember: Do not exhaust your available funds and credit line on the purchase of a truck and equipment. You must plan to expect the unexpected, such as a breakdown, accident or home emergency, each of which will curtail your earning ability while your fixed expenses continue.
There are two sides to all of us the business owner and the driver. The driver wants to have the most luxury possible and the business owner wants the biggest return on their investment. When looking for a truck, there has to be a middle ground in order to create an environment where both the business owner and the driver will be satisfied. As a new owner operator, there is a learning curve and the first priority is be able to make those truck payments and have money set aside for repairs, taxes, fuel, and to pay yourself, the driver. Look at the income you will need to maintain your household and then look at the average income for the size vehicle you will be driving.
When looking at expenses consider what the fuel will cost per year. What are the average miles per year and then find out the average MPG for the specs on the truck you are looking at. If you are buying used ask for ECM report as that will give you the life time fuel mileage and then you can get a pretty good idea of how much fuel will cost. If a new truck ask the dealer and then see if they can give you a name of someone else that is driving that size vehicle with same specs. We have found the dealers are pretty optimistic of what the truck will get for fuel mileage. The lower your truck payment the more you have left for other expenses. Look at insurance costs, sales tax, personal property tax, and other start up costs to get a new truck on the road making money.
As an owner operator, the fixed expenses continue when you take time off to go home or enjoy an area of the country. If the expenses are too high you will paint yourself into a corner and not be able to take time off.
Driver
Deciding to drive for a fleet owner is a great idea for those that do not have trucking or expediting experience. Ask the companies you are interested in if they have a list of fleet owners that you can call. Create a list, once again, of questions to ask each owner. Some owners are a one-truck operation and some have several trucks. Interview the owner in the same manner as you interviewed the companies.
Ask if they have a contract that spells out what is expected from you and what responsibilities you will have. Here are a few examples of what needs to be in the contract and what you need to talk to fleet owners about. You will have more that will pertain to your personal situation.
You should have a written lease agreement with the owner. As a minimum the contract should contain:
ï‚· Location and condition of the truck to be driven,
ï‚· Location and expected condition of return of the truck.
ï‚· Method and terms of payment for services,
ï‚· Deductions for taxes, if any,
ï‚· Escrow payments and conditions of return of escrow,
ï‚· Truck preventive maintenance schedules and locations,
ï‚· Truck corrective maintenance provisions to include:
o Lodging meals and transportation during downtime
ï‚· Accident cost resolution such as who pays for insurance deductibles for a preventable accident; a non-preventable accident.
o Worst case scenario is you return to truck from the truck stop showers and find the truck, which is loaded with the customer’s freight and your personal effects, a total loss due to fire caused by fuel leak.
Fire insurance on truck
Liability insurance for other property damage
Loss of owner/carrier communicationequipment such as Omnitracs (formerly Qualcomm)
Loss of cargo
Loss of your personal effects.
· How often you will be able to take time off or have home time
· Income expected to truck each month
· Will you be required to go to Canada - New York City - California
A good rule of thumb is if you are new to expediting then driving for a fleet owner is usually the best decision. This gives a prospective expediter the time to decide if truck driving is a good career choice before investing in a truck. Another benefit to being a driver is you have the guidance to learn quickly from someone with experience on how to look at loads and decide which one are profitable or not profitable.
Bob & Linda Caffee
TeamCaffee

Saint Louis MO
Expediters since January 2005
Expediting isn't just trucking, it's a lifestyle; 

Expediting isn't just a lifestyle, it's an adventure;

Expediting isn't just an adventure, it's a job;

Expediting isn't just a job, it's a business.