Becoming an owner operator can be an excellent way of taking your career as a truck driver to the next level. However, being an owner operator can be intimidating to many drivers because they may not understand exactly how this process will work. Fortunately, learning the following couple of answers to common questions should make it easier for you to make an informed choice about pursuing the path of an owner operator within a trucking company.
How Can You Arrange Financing To Buy Your Truck?
One of the first things that you will need to do is purchase your truck, and this can be one of the more stressful parts of the process due to the sizable investment. Not surprisingly, most people will need to obtain some kind of financing to make this purchase, but it is important to note that there are many different financing sources that you can choose.
When you opt to pursue a loan from a traditional bank, you will likely need to prepare a business plan because the truck will be considered a commercial asset. This plan must include your business strategy, projected profit margins, income sources and expenses. If you are unable to be approved or unwilling to prepare these documents to apply for the loan, there may still be an option for financing your truck. Some shipping companies will lease their trucks to drivers for a set number of years, and they will be allowed to purchase the truck at the end of this period. While this may take a little longer to become an owner operator, it can be an excellent option for those that have poor credit or do not want to deal with a traditional bank.
Do You Have To Be A Fully Independent Driver?
Some people assume that an owner operators are always fully independent drivers. While it is true that this is an option, there are some people that do not want the added stress this will bring. Independent drivers must secure their own cargo orders and they must pay the full cost of transporting the cargo, such as tolls, fuel and taxes.
Luckily, it is possible to lease your truck to a particular shipping company, and this can eliminate many of these problems. When you are under a lease, you are contractually bound to work for that particular shipping company. Under these agreements, you will typically be allowed to accept or decline shipments as you please, but you are only allowed to work for that particular shipping company. This will allow you some of the freedoms of being a fully independent driver while still offering the benefits of working with an established company.
If you are interested in becoming an owner operator, it is important for you to be informed about what goes into being an owner operator. By understanding your options for financing this purchase and the benefits of leasing your truck, you should have a better idea whether this career path is right for you.