In the world of truck driving, many newcomers are lured into the realm of becoming an owner operator. Given the selection of earning .34¢ per mile or .15 per mile, it is not difficult to understand why person would choose the route of higher earnings. At 2500 miles per week, the discrepancy of 25.00 extra per week deserves attention. However, when dealing with expert truck driving jobs, you must deal with reality.
In an business where the driver averages 100,000 miles per year, an owner operator compensated at .15 per mile is finding at grossing 5,000.00 annually. Compared to the average company driver at .34¢ per mile, their every year gross is a mere ,000. Why would anyone choose a ,000 every year income more than 5,000 while performing the same duties?
Although owner operators are declining, there are still those companies that advertise proudly that they are a 100% owner operator fleet. Some have even raised the compensation to an great .50 per mile. At 100,000 miles per year, you are now facing a gross income of 0,000 per year! As a newcomer searching for a new vocation and a company willing to place you in "your own truck," the excitement of earning that kind of money is hard to turn down. You want the relaxation . . . You want your own company . . . You want 0,000 plus per year. It all sounds great. Now, let me take you to reality.
Owner operator lease programs are a way for new drivers to "own" a truck. The driver is responsible for all expenses, along with fuel and repairs. Although there are some who do well with it, the majority of these owner operators will fail. To me, a lease owner operator is nothing more than a glorified company driver. Let's take a look at a behalf and loss pathology sheet for an owner operator and a company driver, and you be the judge:
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Company Driver: behalf and Loss - Based on 100,000 miles per year
- Compensation : .34¢ per mile = Driver's Gross income - ,000
- Misc. Expenses, along with meals @ 5.00 per week = Total Cost - 00
- *Tax withholdings @ 15% = every year deductions - 00
- Company Driver Net every year income = ,400.00
- Company Driver Net weekly income = 0.77 *Tax withholding is appraisal only at 15% average And now . . . The "owner operator": Owner Operator: behalf and Loss - Based on 100,000 miles per year
- Compensation : .15 per mile = Driver's Gross income - 5,000
- Truck payment @ 1,333.35/month = every year Cost - ,000.20
- Collision/Comp. Assurance = every year Cost - 00
- Bobtail Assurance = every year Cost - 4
- Licenses = every year Cost - ,835
- Permits = every year Cost - 5
- Accounting Services = every year Cost - 5
- Tractor Fuel = every year Cost - ,397.06
- Truck Wash = every year Cost - 1
- Telephone = every year Cost - ,624
- Meals = every year Cost - 00
- Tolls = every year Estimated Cost - ,275
- Taxes (Road, Use, Fuel) - ,755
- Taxes (Personal @ 15%) - every year Cost - ,250
- Misc. Expenses - every year Cost - 0
- Maintenance @ .06¢ per mile = every year Cost - 00
- Total income to Owner Operator = 5,000
- Total Cost of carrying out = 1,191.26
- Owner Operator Net every year income = ,808.74
- Owner Operator Net weekly income = 5.55
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The figures speak more loudly than words. This pathology is also based on the fact that everything goes just as is. A few tires blow out . . . A blown engine . . . And you are now in the red. It is not difficult to understand why the trucking companies love the lease owner operator. 100,000 miles per year at 60 Mph will take you 1666.66 hours to drive in a excellent world. This owner operator's net every year income shows that they performed this hard, difficult life for .28 per hour.
The "freedom" of being an owner operator is a myth. Turn down a load or "head home" whenever you want, and see how long the company will make you sit afterwards. As a company driver just drive . . . Without the headaches and expenses associated with the owner operator program. If over the road truck driving is in your plans, think hard about the possibilities that await you. Like everything in life . . . Learn all you can Before you begin the journey. It is imperative that you know the truth about trucking.
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