The Finances of Being an Owner Operator
There is more involved in being Owner Operators than going to trucking schools and getting all of the necessary CDL requirements. Being your own business has many of the costs which are associated with any kind of trucking jobs. It is important to know what these expenses are so that you will be properly prepared for the road ahead. You will be able to enjoy your trucking career more if you know what to expect.
Purchasing Your Truck
The largest finance you will face as an Owner Operator is the purchase of your own truck. This is not only a huge expense because of the amount you will pay to purchase the truck. You will also have to worry about maintaining the truck and keeping it filled with fuel to get you across country. Maintenance costs are another cost which will eat up a lot of your profits. All of this goes into the one commodity you absolutely need to stay in business.
Lowered Freight Costs
When you are an Owner Operator, you will not be able to get the same price as the larger companies who pay less per truck for what you pay. This means you have to do more with less money just to make ends meet. This means everything you spend while on runs will go against the money you are making for the run itself.
When you run your own business, you will need to cover your truck for accidents as well as cover the trailers for accidents and drops. This can be a fairly high amount to pay when you are a new Owner Operator. You will also have to opt for a high payout to make sure companies will hire you. They will not choose a driver without enough insurance to cover their shipment.