There is plenty of opportunities for truck operators and owners, as well as a demand for drivers. Working as an owner operator has a lot of advantages. One of these things is the opportunity to set his own schedule, gain lots of money, and plan routes that he wants to take.
A lot of owner operators fail due to not paying attention to company policies as well as contract details before signing on with a company. Researching companies is very important before making a final decision. Company policies do vary. These companies that offer the following benefits will assure the driver’s success.
A company provided trailer – This is important since even though the truck is being bought on a lease purchase agreement, then the company provides the trailer at no additional cost.
Load and freight consistency – This is similar to an operating business. Having consistent loads should be expected since fixed truck payments will be deducted weekly from settlements. Income must be estimated accurately.
Shorter loads must have a higher pay, and dispatching must have lower pay.
It will take more time for shorter loads that are waiting to be loaded and unloaded if the owner has been driving for longer miles. In order to compensate for the waiting time, he must have higher pay. Negotiating a minimum pay that the owner will accept with each dispatch is also important. The amount paid will be based mainly on the number of miles driven each week. This will let the owner know that he has the funds needed to operate successfully.
Dispatchers can plan loads accordingly if the owner informed him of his lane preferences. Tolls may be paid while on the road, but authorized tolls are supposed to be reimbursed by the company.
The owner will gain more money if the company pays for these fees.
Fuel cards, advances, and money transfer systems from the company allow the owner to be paid on the road.
Weekly settlements with a direct deposit option assure the owner that funds will be deposited into his bank account. Detention is getting an extra pay that is based on an hourly rate when the owner needs to wait more than the required time to load or unload.
Extra income can be earned if the owner refers other drivers to their company. He will earn a bonus if the person gets hired.
Paying attention to even the smallest details will guarantee success.
Permits and licensing are based on the coverage of the operation, as well as the Gross Weight Vehicle (GWV) of the truck. A truck with a GWV of 10,001 requires a Unified Carrier Registration. Trucks with a GWV of 26,001 need a UCR, IRP plates, and an IFTA. These permits may vary with each state.
Truck Leasing vs. Truck Buying
Leasing is different compared to buying. Buying involves paying for the whole amount of the truck’s price. When buying a truck, the owner will be asked to pay first for the down payment. Then the taxes will be paid specifically either in cash, or other modes of payment. After paying, the owner will now be ready to use his truck whenever he wants.
When a driver leases, he only pays for a portion of the vehicle’s cost. Leasing and renting are also different. In renting, the driver should return the truck by the time he ends the use for it, and the amount paid depends on how long the truck is used. Leasing only involves paying the tax, money factor, and fees while using the truck.