To make the comparison fair, you should subtract from the lease operator the average tax he would have to pay at the end of the year. That would be a more real and transparent comparison. I love these comparison videos. Keep it up.
@@DarkSideOfTheGame22 US dollars and I don’t even leave my city any more at all. Got 2 150 gallons I might fuel up completely every 9-12 days depends on how heavy my loads are. Usually 120-150k, I do have a few 250k loads I haul but it’s not always everyday
It's very simple, it all depends on the company you work for. I drove as a company driver for 20 years and right now I have 3 1/2 years as a lease operator bringing my own truck. Simple answer is I make 3 times more money, coast of operation are minimal since I run under their authority and they provide me with ez pass, pre pass, IFTA, and cargo insurance plus the fuel discounts on the EFS card. If you work for a good company Owner Operator friendly and you take pride on what you do, you shouldn't have any problem making good money and buying a new truck every four years which keep your maintenance coasts down.
@@mikecampbellme I had it financed, I always listened from other people, never get into any lease purchase program. Work on your credit, save some money for down payment and buy with your own credit and of course look for a good company to haul for.
@@bigzachfulI don't know your zip code but if you have a truck 2020 or newer, hazmat and tanker endorsements, I'm pretty sure there are good options in your area.
EVERYTHING Depends On The Company You Work For. I Can Tell You First Hand Most MEGA CARRIER Company Drivers Are NOT Seeing Those Numbers In A Pay Period.
You're not going to find a company giving you 3200 or 3700 miles every week. I agree with you 100% these inflated numbers are absolute best case possible. That doesn't happen in trucking.
im a new guy, just getting my feet wet before i get my own truck.. ive done a lot of research and heres the thing, if youre willing to literally live in the truck until you pay off the lease then it will work for you. but like is often said, one week off will kill you, you might not take anything home the next week depending on how it goes and what your truck note looks like. i mean, ive seen 700-1400 per week depending on the company and if theres a large buy out at the end. and the insurance on top of that. with the RIGHT used truck you can stay below that and make a better % with a better company and if you save enough you can pay the truck off early and be on your way to doing your own thing when you want to.
👍 For rockin the purple Rone, reminds me of the first truck I bought, it was a sun faded wore out peterbilt 359. Owing your own truck is way better than being a company driver in my opinion.
The company I work for pays oo/lo 2.15 a mile round trip for tankers and company drivers start at .45 a mile usually 50% deadhead and average is 3500 miles a week across the fleet fuel surcharge is whatever the national ave is but that's milk hauling crude oil when I was an oo was great I made 3500 a load rocky mountain doubles only took 4hrs a load but it destroyed the equipment quickly because alot of the wells weren't on anything close to a road just whatever the grader made became the road where as company drivers for the same company made about 600 a load
This isn’t realistic. When not to get into a lease program # 4 unpredictable RISING FUEL COSTS #5 extremely high truck prices. #6 part shortages #7 when someone keeps making it look so amazing without telling the whole story. I’m a big fan but your not honest about the lease and company driver videos. Company driver gets $10,000 minimum back in food per diem at tax season. Pays nothing for fuel and repairs or down time when the truck breaks. And it will break. And you will be unable to drive for a period of time. And you will still be making that payment. The last video about this you again left out the company driver tax return from your totals and when I did the math your lease driver only made $13,000 more over the whole year than the company driver…. Not $45,000 or whatever number you used there. That’s not being transparent. Make a little less ya ok till a big repair comes and your spend the next 3-5 years playing catch up. Broke as hell. Watch real lease driver videos and see how many in today’s industry aren’t broke constantly unable to take a vacation. I’m sorry but there is a reason the guy who runs (not drives for) a truck company keeps pushing the leasing…. It takes liability away from him and makes him a crap ton more money. It’s not hard to see. DO YOUR RESEARCH don’t believe something that sounds too good to be true. If it was an extra 50 grand a year everyone would do it. Oh and 7500 miles in 15 days is not going to happen often if ever. 6000 is a much more reasonable number. I do about 11,000 and take 6 days off a month. Good luck doing that with a lease. Slave to your truck payment. Be safe out there :) and be smart.
It can be WAY more than an extra 50 grand. If you aren't leasing a truck or working towards a specific goal, why are you working for such low wages? Any skilled trades will pay more for the same hours because of hourly pay. Trucking needs to change. Glad I found leasing after I couldn't haul cars anymore. Otherwise, I'd be out of trucking tomorrow and doing building maintenance with a guaranteed yearly raise and all hours worked actually paid for.
Can it really be considered a depreciating asset though. I mean unless it’s just a show truck, and you’re actually out working with it, is the plan not to make well over the amount you’ve spent on it?
I would never be a lease operator! To many sketchy companies out there. Save your money as a company driver and buy your own truck when you get the down payment. With fuel cost right now you are better off just staying a company driver. What Ronan did not mention is maintenance. I take 25% of my income and keep it for maintenance. Average PM cost about $400.00 I do mine every 20,000 miles. Set of drive tires $5-6,000 Steer tires $1500. Brakes $400 per axle. Windshield $600 you can plan on one every 2 years. The advantages of being leased is insurance is much cheaper. You don't have to worry about license and permits. You don't have to mess with quarterly reports. You don't have to mess with filing your 2290. Basically you get to drive your truck and worry about maintenance. If you are with a good company that passes the fuel Sur charge on to you you could be better off leased on in rough times. Just research all you're options!
Anyone in the trucking industry, either driver, owner operator, dispatch, etc is helping to move the stuff around what is needed but the issue is what if someone doesn't like the present set up as you explained. Means, sometimes people have their own attitudes like the driver may be looking for: it is to lease a truck, not by fixed monthly installments but by paying % out of take home earning. It is very simple and easy but no one tried this way. In other words, if someone makes 4,000 in a week by driving local pick ups that mean 16,000 in a month then you take 25% for equipment (which is truck and trailer in this case) mean you have 4,000 for your truck and trailer payment. In this way the driver has no stress because he is paying 25% from take home and if the truck or trailer broke down then no payment as he has no take home. Or may have a couple of weeks off that means payment relief or no payment for off days or sick time. So, if someone books more money then he may get a very nice and new truck. So, someone has all kinds of freedom while dealers or leasors will make the money they need.
As a company driver working the flatbed Division, I make $2,200 after taxes a week. I want to do lease or be an owner operator, but with the fuel prices now, I don't know if the fuel surcharge would be enough incentive. I don't have any debts or mortgages or car payments, and have plenty of cash on hand and my credit score is in the 700's, I just don't know if I want to make that step to be an owner op/lease purchaser. What do you think? Again, I make about $110,000 a year, and my company said I'm in the top 10%
@@KP-05 I'm assuming Ontario, Canada right? We do cross border travel, but we are in the USA. It doesn't hurt to ask if you want to do cross border travel
As alot of folks have said the lease driver's truck payment is not actually an expense though it is discised as such. That payment is going toward his/her assets. Which can be liquidated or borrowed against ect once owned. However take a good look at the economy and the businesses including major one's that are having to shut doors because of it. Be sure to know what will happen apon the event said business leasing the truck files bankruptcy. It can happen to anyone at anytime. Tarp your a$$ good n tight.
I think the biggest difference in company driver vs oo/lo is simply company drivers don't have to worry about breaking down they have 0 in maintenance expenses and no matter how good you are at doing preventive maintenance trucks break down company drivers get a hotel room get paid while they are broke down and they have 0 costs not a single oo/lo can say that they are flipping the bill for everything warranty covers some but in our fleet we got 7 2023 Cascadias in and within 20k miles all 7 in the shop for Def issues all required multiple days to get fixed the drivers didn't make as much but they didn't have any expenses at all
Correct me if I am wrong but the Lease operator can fully deduct the Lease for Income Tax purposes AND if he buys the truck he will have an asset that represents a lot of cash; The TRUCK.
The truck is a depreciating asset a portion of which is deducted from revenue every year until there is no more depreciation. But yeah its definitely going to bit a big hit to the cash flow starting out.
@@motomarty8269 Unfortunately you are word playing. The asset does not exist for the Income Tax Canada BUT it does exist for the driver he has a physical asset which is the truck. If this is not true then send me ALL YOUR TRUCKS once they have no depreciation.
The only way I would consider becoming a lease operator is if #1)I will own the truck after a certain # of payments #2)my payments build equity like mortgage payments do #3) I can pay off early #4) I can spec the truck to what I want #5) I can take the truck somewhere else
Good advice Ronan! Can you make videos on how you set up your house hold finances? If course you'd have to not be affiliated with ET transport, but I think people wanna get to know your personality away from ET transport! Im trying to get back on my feet after finalizing my divorce. Hungry to learn,maybe I can learn from someone. Bless your a good man, keep up the great work, you have a great team at ET transport!
If you want to make serious money, buy a used truck and prepare for repairs. Lease with a paid off truck and that'll be another $1,500 to $2,500 in your pocket, bi-weekly.
That’s part of owner opp they don’t tell you. Driving for a guy right now. $3000 radiator this week. Last week was $1200 ac repairs. Trans $10k and up. Engine $25k-$40k. The extra amount you make needs to go into a fund for these big bills so do you really make more. Depends on how reliable your tractor is
@@adamspencer6666 i do all my own work, ac just went out. Cost me about 450 in parts and a Saturday afternoon with my son. It’s a life style. :). I do my own tire changes as well. Brakes, you name it, we do it our selves.
@@pokerman9108 I feel like that’s the only way to make it as an owner opp at this point. I’m just not at all mechanically inclined and don’t have that time or money to learn. Just just drive them 😂
As a local company driver in central Ca. with 28 years experience, I gross over 113k a year and I'm home every night and weekends and holidays off with 4 weeks vacation a year. Did the O/R thing for over 8 years. No thanks. I did my time.
Now can you make a comparison of what a true owner operator (ME)of his own small fleet with payed off truck and without dispatch fees makes vs a company driver 😂😂😂😂😂😂
That’s interesting because that’s what I hear what I do is that I work the railyards and everybody that I talk to says that you make about $1000 a week more if you own your truck and this video kind a support that Theory I guess
If those numbers present the complete picture then it is more expensive for the company to employ a lease operator than a company driver. Am I missing something?
Highly controversial sounds right to me. I'm green to all this. I'm a driver student right now and researching the industry. Obviously, there's a catch. It can't be that easy, is it? Why would a fleet/company promote a system where they give the lease/operator driver so much more money per load than their regular company drivers? What am I missing? For one thing, it forces the driver to stay with that company. Is there money the company makes simply by leasing out the truck? Obviously. Obviously. Obviously. In a time of great inflation, such companies will make more and more money from leasing out new trucks. Also, with all these new trucks (with DEF, Prime, etc.) is there not a lot of savings for the company (not the driver) of not having to pay all the increasing costs these days (that, despite what some same, the older trucks don't see in the same way), such as: - repair and regular maintenance misc. expenses (like oil changes every 5K - which is close to 3x per month, right?); - rapid inflation ownership/lease operator costs; - drivers insurance - EI/CPP/pension costs? Like I said, I'm new, so certainly I've not covered all the costs savings that are most definitely going to be passed down to the driver, what to speak of the time and responsibilities the driver will have to take on... Especially if he's driving the maximum hours allowed per week? Certainly, a driver better have a clean CVOR.
@@jerrysaidit That’s what I’m trying to do. That way if I don’t want to work that week or go on a vacation I can when I want! What company is it brother?
How about making a video about how much the employer spends on an w2 employee vs a lease operator.. 🤔 taxes, insurance, 401k, brake downs, ect.... if your soooo neutral it shouldn't be a problem🤔
You didn't mention or I don't know if you took him to consideration the insurance on the lease vehicle , was that's already taken out in the deductions ?
I am confused. For refer drivers comparison, Company drivers net pay was after payroll taxes but for lease operator there was no tax deduction? how is that a fair comparison?
Two things. You did not account For the value of the truck payment minus depreciation for the lease purchase... Also in the United States if you make over a certain amount you have to make quarterly prepayments.. there for you would not just be filing taxes at the end of the year.
Unfortunately, truck maintenance and expenses run $1.25 per mile on average, so not really a big difference. That difference is assuming no down time for repairs or sickness. Some big assumptions!
Not for me im a company driver. Teamsters union i drive local 80 miles a day. One hour lunch 4 weeks vacation 13 holidays 6 personal days. With a $2,750 pension went a retirement. 65,000 a year b/4 taxes. 5 days. Easy job. Im very happy.
I don’t understand when you say Company drivers pay taxes weekly or something like that.And Lease Opps pay taxes yearly.Isn’t that the other way around? Company Drivers are W-2 employees,Lease/Owner Opps are 1099 self employed I thought???
Well I looked at your site and you guys show $1.77 cpm for O/O. A driver can’t make it on that with a new truck payment and fuel…… you would be making around 2500/3000 a week after deducting. I make around 5k. Weekly after fuel and I get crap fuel mileage.
This video isn't completely forthcoming. LO's have payments whether they're driving or not. That changes the spread considerably. Lease Operator is better if you're hard working, but this video is not candid.
being able to choose your loads is a hard one if you are running load boars with a dispatcher. the good higher paying loads come and go very fast and the dispatcher has to call on them immediately to have a chance at getting them. so they really don't have the time to call and ask you if you want it. If they do so, the load is gone. If they take the load and then you deny it, well that can't happen very often or you get the rep for doing such and they will not use you. Best thing to do is tell the dispatcher what states you are ok running in.
A couple weeks can look great, but any business is run on quarterly. Sometimes even one quarter can be great while the other three wreck you. No maintenance hits on the lease guy sure helps. Company driving should be all about the benefits paid for, not really mentioned either, that the lease guy has to pay themselves. I know you are just giving a quick shallow look here, and its not with a bad intent, but the info could be deceiving for some. I am not saying that the lease guy wont come out ahead at the end of the year either, just that this video is short sighted for decision making.
As a 29 yr company driver I never brought home a 6 k check I have been a 1 yr lease driver 360k highest check 8k take home ....so there is 3 rules in leasing
$0.55 per mile is the reason people are leaving trucking. That is incredibly low pay in 2022 for the high requirements and HOS exhaustion expected of truck drivers. If I hadn't started leasing, I would have left trucking permanently this year. The hours have gone up, and the wages haven't at all for me personally besides going to a lease. I made more typing in an office than I ever did hauling cars, or diesel as a company driver just because of the hourly pay compensating all hours worked.
@@matthewm9261 They just don't get it. Lyft pays way more than that. 🤣🤣 They pay $0.78/mile plus a $0.55/mile FSC. I can use e85 for $3/gallon still in Michigan getting 18mpg in my Silverado. Truck drivers are too smart for this incompetency to exist with salary.
$5,200 really net? Or does that leased driver has to pay income tax on that $... Also, this does not account truck maintenance which company driver does not have to worry about😊
Well you didn’t add truck repair exp if you add up it will be same either get your own authority or be a company driver lease is not worth at all and some point when truck will be 3 year old than components driver make more money vs owner operator
While Ronen mentions that the lease ops pay taxes on the "take home" income ET pays, he fails to mention numbers. Even with the current (low IMHO) fuel surcharge ET pays, the lease ops are basically running to pay the lease payments, insurance, fuel, and taxes, with not a lot left over for themselves. God help them if they have a major breakdown and the truck is out of warranty because then they're screwed, blued, and tattooed - and not in a fun way. Rates being paid to lease ops simply MUST go up - there's no way around it. With the current economic situation, there's simply no benefit to becoming a lease or owner operator right now.
I have a question. I am 25 years old now. I've been driving a trucker since I was 22. And I'm not married, I don't have any dependents, I go home three to four times a year, and I spend between $500 and $600 a month on living expenses And I have about 180,000 dollars in my account (I'm an OTR trucker) and I'm wondering if I should do an owner operator next year or save a little more money, so is it okay to do an owner operator in my current situation?
It can cost 30 to 60 k annually to maintain a semi so the 48 k extra the lease operator spends us the difference if what the company driver didn't make...I know a very good lease operator who had to walk away because its too much for fuel and the tax bill he had to pay was hefty these are the hidden cost a company driver doesn't have to deal with.
As with anything ronen greater risk = greater reward that's capitalism that's how it works so of course the o/o or lease driver is gonna make more what I need to know is what the industry as a whole is doing on driver retention that would be a subject of great interest
I paid alot of $ for a lease on a truck and trailer but the equipment paid for itself and I just got my pink slip in the mail ITS A GOOD FEELING
To make the comparison fair, you should subtract from the lease operator the average tax he would have to pay at the end of the year. That would be a more real and transparent comparison. I love these comparison videos. Keep it up.
I like being owner operator after seeing these numbers. My truck doesn’t move for anything less than 2.50 a mile
Is that including 'fuel charge' or just miles?
8 bucks a gallon here ... good luck
Is that US dollars or Canadian dollars
@@bhall19875 by miles but I do heavy hauling now so nothing less than 6.00 a mile now. Heavy haul has no down time or slow season
@@DarkSideOfTheGame22 US dollars and I don’t even leave my city any more at all. Got 2 150 gallons I might fuel up completely every 9-12 days depends on how heavy my loads are. Usually 120-150k, I do have a few 250k loads I haul but it’s not always everyday
It's very simple, it all depends on the company you work for. I drove as a company driver for 20 years and right now I have 3 1/2 years as a lease operator bringing my own truck. Simple answer is I make 3 times more money, coast of operation are minimal since I run under their authority and they provide me with ez pass, pre pass, IFTA, and cargo insurance plus the fuel discounts on the EFS card. If you work for a good company Owner Operator friendly and you take pride on what you do, you shouldn't have any problem making good money and buying a new truck every four years which keep your maintenance coasts down.
Douglas, did you buy a truck outright or leasing outside?
@@mikecampbellme I had it financed, I always listened from other people, never get into any lease purchase program. Work on your credit, save some money for down payment and buy with your own credit and of course look for a good company to haul for.
Yeah truck are cheap
@@crdougsol
Do you know a good company to work for brother?
@@bigzachfulI don't know your zip code but if you have a truck 2020 or newer, hazmat and tanker endorsements, I'm pretty sure there are good options in your area.
I like the walk away lease and the freedom of picking your own loads.
Is this your experience, or is it your wish?
There is a reason carriers push for lease operators. It’s good for them and places most of the liabilities on the driver.
EVERYTHING Depends On The Company You Work For. I Can Tell You First Hand Most MEGA CARRIER Company Drivers Are NOT Seeing Those Numbers In A Pay Period.
You're not going to find a company giving you 3200 or 3700 miles every week. I agree with you 100% these inflated numbers are absolute best case possible. That doesn't happen in trucking.
im a new guy, just getting my feet wet before i get my own truck.. ive done a lot of research and heres the thing, if youre willing to literally live in the truck until you pay off the lease then it will work for you. but like is often said, one week off will kill you, you might not take anything home the next week depending on how it goes and what your truck note looks like. i mean, ive seen 700-1400 per week depending on the company and if theres a large buy out at the end. and the insurance on top of that. with the RIGHT used truck you can stay below that and make a better % with a better company and if you save enough you can pay the truck off early and be on your way to doing your own thing when you want to.
This is a great channel. Great content. Many trucking companies are not open about the industry. Keep it up, guys
👍 For rockin the purple Rone, reminds me of the first truck I bought, it was a sun faded wore out peterbilt 359. Owing your own truck is way better than being a company driver in my opinion.
Ronan please do a video about the pros and cons of a lease with the dealership and not with a company. Thank you
Hmm. Are you giving us a clue?
Would be great to see the difference between a company driver and a lease operator in the tankers division (fuel tankers)
Sure. But do you think the concept would be so different?
The company I work for pays oo/lo 2.15 a mile round trip for tankers and company drivers start at .45 a mile usually 50% deadhead and average is 3500 miles a week across the fleet fuel surcharge is whatever the national ave is but that's milk hauling crude oil when I was an oo was great I made 3500 a load rocky mountain doubles only took 4hrs a load but it destroyed the equipment quickly because alot of the wells weren't on anything close to a road just whatever the grader made became the road where as company drivers for the same company made about 600 a load
You spoke of fuel surcharge with lease operators but you didn't mention what he paid for fuel out of his gross!
@@geraldwilson727 .45 cents a mile? Wow. How can people survive?😢
@andy handyman that's about 1575 a week starting pay I'm making roughly 2k a week before taxes so I do very well
The lease works for u IF u take care of equipment and see it through..afterwards u should have better options..with a truck to do with what u pls
This isn’t realistic.
When not to get into a lease program
# 4 unpredictable RISING FUEL COSTS
#5 extremely high truck prices.
#6 part shortages
#7 when someone keeps making it look so amazing without telling the whole story.
I’m a big fan but your not honest about the lease and company driver videos. Company driver gets $10,000 minimum back in food per diem at tax season. Pays nothing for fuel and repairs or down time when the truck breaks. And it will break. And you will be unable to drive for a period of time. And you will still be making that payment.
The last video about this you again left out the company driver tax return from your totals and when I did the math your lease driver only made $13,000 more over the whole year than the company driver…. Not $45,000 or whatever number you used there. That’s not being transparent.
Make a little less ya ok till a big repair comes and your spend the next 3-5 years playing catch up. Broke as hell. Watch real lease driver videos and see how many in today’s industry aren’t broke constantly unable to take a vacation.
I’m sorry but there is a reason the guy who runs (not drives for) a truck company keeps pushing the leasing…. It takes liability away from him and makes him a crap ton more money. It’s not hard to see.
DO YOUR RESEARCH don’t believe something that sounds too good to be true. If it was an extra 50 grand a year everyone would do it.
Oh and 7500 miles in 15 days is not going to happen often if ever. 6000 is a much more reasonable number. I do about 11,000 and take 6 days off a month. Good luck doing that with a lease. Slave to your truck payment.
Be safe out there :) and be smart.
You are totally 💯 right
I've been doing this shit for 23 years you are absolutely correct driver 👍🏾
If you're a company driver and they pay per diem you get weekly. But if company doesn't offer per diem then company driver can't claim the per diem..
It can be WAY more than an extra 50 grand. If you aren't leasing a truck or working towards a specific goal, why are you working for such low wages? Any skilled trades will pay more for the same hours because of hourly pay. Trucking needs to change. Glad I found leasing after I couldn't haul cars anymore. Otherwise, I'd be out of trucking tomorrow and doing building maintenance with a guaranteed yearly raise and all hours worked actually paid for.
No freedom being a company driver
They made 2k as company driver working 15 days? Thats horrible
With breakdowns and owning a truck which is a depreciating asset...no thanks.
Real estate is a better investment.
I'm gonna stay a company driver.
Can it really be considered a depreciating asset though. I mean unless it’s just a show truck, and you’re actually out working with it, is the plan not to make well over the amount you’ve spent on it?
It's worth less as it is used that's what depreciation is...the accounting term is "amortization."
when u lease purchase and wanna go to another company, some trucking companies will pay off your rig so u can continue making payments
I would never be a lease operator! To many sketchy companies out there. Save your money as a company driver and buy your own truck when you get the down payment. With fuel cost right now you are better off just staying a company driver. What Ronan did not mention is maintenance. I take 25% of my income and keep it for maintenance. Average PM cost about $400.00 I do mine every 20,000 miles. Set of drive tires $5-6,000 Steer tires $1500. Brakes $400 per axle. Windshield $600 you can plan on one every 2 years. The advantages of being leased is insurance is much cheaper. You don't have to worry about license and permits. You don't have to mess with quarterly reports. You don't have to mess with filing your 2290. Basically you get to drive your truck and worry about maintenance. If you are with a good company that passes the fuel Sur charge on to you you could be better off leased on in rough times. Just research all you're options!
Great video content, why not include lease operator repairs & maintenance????
Anyone in the trucking industry, either driver, owner operator, dispatch, etc is helping to move the stuff around what is needed but the issue is what if someone doesn't like the present set up as you explained. Means, sometimes people have their own attitudes like the driver may be looking for: it is to lease a truck, not by fixed monthly installments but by paying % out of take home earning. It is very simple and easy but no one tried this way. In other words, if someone makes 4,000 in a week by driving local pick ups that mean 16,000 in a month then you take 25% for equipment (which is truck and trailer in this case) mean you have 4,000 for your truck and trailer payment. In this way the driver has no stress because he is paying 25% from take home and if the truck or trailer broke down then no payment as he has no take home. Or may have a couple of weeks off that means payment relief or no payment for off days or sick time. So, if someone books more money then he may get a very nice and new truck. So, someone has all kinds of freedom while dealers or leasors will make the money they need.
As a company driver working the flatbed Division, I make $2,200 after taxes a week. I want to do lease or be an owner operator, but with the fuel prices now, I don't know if the fuel surcharge would be enough incentive. I don't have any debts or mortgages or car payments, and have plenty of cash on hand and my credit score is in the 700's, I just don't know if I want to make that step to be an owner op/lease purchaser. What do you think? Again, I make about $110,000 a year, and my company said I'm in the top 10%
Which company you work for?
@@KP-05 System Transport, glass division
@@DarkChaos751 thanks brother. I gotta admit 2200 a week after taxes is really good. Holy. Is this company in Ontario?
@@KP-05 I'm assuming Ontario, Canada right? We do cross border travel, but we are in the USA. It doesn't hurt to ask if you want to do cross border travel
@@DarkChaos751 yes in Canada. Thank you for the reply. I will look into it.
Still haven’t forgotten that ET’s Cascadias new Kenmores are “averaging” 8+ mpg!
As alot of folks have said the lease driver's truck payment is not actually an expense though it is discised as such.
That payment is going toward his/her assets. Which can be liquidated or borrowed against ect once owned.
However take a good look at the economy and the businesses including major one's that are having to shut doors because of it.
Be sure to know what will happen apon the event said business leasing the truck files bankruptcy. It can happen to anyone at anytime.
Tarp your a$$ good n tight.
Am learning a lot from your video. Keep it up Ronen
I think the biggest difference in company driver vs oo/lo is simply company drivers don't have to worry about breaking down they have 0 in maintenance expenses and no matter how good you are at doing preventive maintenance trucks break down company drivers get a hotel room get paid while they are broke down and they have 0 costs not a single oo/lo can say that they are flipping the bill for everything warranty covers some but in our fleet we got 7 2023 Cascadias in and within 20k miles all 7 in the shop for Def issues all required multiple days to get fixed the drivers didn't make as much but they didn't have any expenses at all
Thanks for a great video. Keep up the good work. This motivated me to want to become a lease operator. Thanks again.
Correct me if I am wrong but the Lease operator can fully deduct the Lease for Income Tax purposes AND if he buys the truck he will have an asset that represents a lot of cash; The TRUCK.
The truck is a depreciating asset a portion of which is deducted from revenue every year until there is no more depreciation. But yeah its definitely going to bit a big hit to the cash flow starting out.
@@motomarty8269 Unfortunately you are word playing. The asset does not exist for the Income Tax Canada BUT it does exist for the driver he has a physical asset which is the truck. If this is not true then send me ALL YOUR TRUCKS once they have no depreciation.
@@claudem.p.7969 I stand corrected. The company gets to take the depreciation expense. I wasn’t thinking. I’m not familiar with lease/purchases.
The only way I would consider becoming a lease operator is if
#1)I will own the truck after a certain # of payments
#2)my payments build equity like mortgage payments do
#3) I can pay off early
#4) I can spec the truck to what I want
#5) I can take the truck somewhere else
I really appreciate your honesty.
I rather stay a company driver. I rather save my money and work on my credit. Hopefully soon buy my own truck.
Good advice Ronan! Can you make videos on how you set up your house hold finances? If course you'd have to not be affiliated with ET transport, but I think people wanna get to know your personality away from ET transport! Im trying to get back on my feet after finalizing my divorce. Hungry to learn,maybe I can learn from someone. Bless your a good man, keep up the great work, you have a great team at ET transport!
If you want to make serious money, buy a used truck and prepare for repairs. Lease with a paid off truck and that'll be another $1,500 to $2,500 in your pocket, bi-weekly.
To me being o/o or lease purchase was never about the money it was about me going home when I say so to be with my family
Awesome video brother. Great information. New subscriber here. Thank you.
How about the cost for breakdowns and maintenance on trucking?
This is exactly what I was telling myself. At the end, went you consider the maintenance. I expect the net income to closer.
@@boivin2129 its about .17 a mile for maint, So the lease is still doing ok.
That’s part of owner opp they don’t tell you. Driving for a guy right now. $3000 radiator this week. Last week was $1200 ac repairs. Trans $10k and up. Engine $25k-$40k. The extra amount you make needs to go into a fund for these big bills so do you really make more. Depends on how reliable your tractor is
@@adamspencer6666 i do all my own work, ac just went out. Cost me about 450 in parts and a Saturday afternoon with my son. It’s a life style. :). I do my own tire changes as well. Brakes, you name it, we do it our selves.
@@pokerman9108 I feel like that’s the only way to make it as an owner opp at this point. I’m just not at all mechanically inclined and don’t have that time or money to learn. Just just drive them 😂
I am planning to be owner operator soon and then to be a owner of 2,3,4,or 5 trucks
As a local company driver in central Ca. with 28 years experience, I gross over 113k a year and I'm home every night and weekends and holidays off with 4 weeks vacation a year. Did the O/R thing for over 8 years. No thanks. I did my time.
Happy that things are okay for ya!
Now can you make a comparison of what a true owner operator (ME)of his own small fleet with payed off truck and without dispatch fees makes vs a company driver 😂😂😂😂😂😂
Been on the fence the entire time I’ve been trucking! Owner opp sounds great but man some huge downsides as well
Thank you very much for this great video !
Think about it this way if it was more profitable for them to pass the operating cost onto the driver would they even bother?
That’s interesting because that’s what I hear what I do is that I work the railyards and everybody that I talk to says that you make about $1000 a week more if you own your truck and this video kind a support that Theory I guess
If those numbers present the complete picture then it is more expensive for the company to employ a lease operator than a company driver. Am I missing something?
Highly controversial sounds right to me. I'm green to all this. I'm a driver student right now and researching the industry. Obviously, there's a catch. It can't be that easy, is it? Why would a fleet/company promote a system where they give the lease/operator driver so much more money per load than their regular company drivers? What am I missing?
For one thing, it forces the driver to stay with that company. Is there money the company makes simply by leasing out the truck? Obviously. Obviously. Obviously. In a time of great inflation, such companies will make more and more money from leasing out new trucks.
Also, with all these new trucks (with DEF, Prime, etc.) is there not a lot of savings for the company (not the driver) of not having to pay all the increasing costs these days (that, despite what some same, the older trucks don't see in the same way), such as:
- repair and regular maintenance misc. expenses (like oil changes every 5K - which is close to 3x per month, right?);
- rapid inflation ownership/lease operator costs;
- drivers insurance
- EI/CPP/pension costs?
Like I said, I'm new, so certainly I've not covered all the costs savings that are most definitely going to be passed down to the driver, what to speak of the time and responsibilities the driver will have to take on... Especially if he's driving the maximum hours allowed per week?
Certainly, a driver better have a clean CVOR.
What are your thoughts on PRIME INC's lease program?
Honestly, all I can say is... ET's lease program is the cream of the crop!
Would you suggest going on Super Ego 0 down no ballon walk away program? Is it workable?
Sounds like an interesting program, what are the specifics of the agreement?
0 down, no forced dispatch, 12% commission take up, 80-20 you walk away after 3-5 years depending on your preference
@@jerrysaidit
That’s what I’m trying to do. That way if I don’t want to work that week or go on a vacation I can when I want!
What company is it brother?
How about making a video about how much the employer spends on an w2 employee vs a lease operator.. 🤔 taxes, insurance, 401k, brake downs, ect.... if your soooo neutral it shouldn't be a problem🤔
Exactly!!!!
How much they need to pay to lease a truck van one ? Thank you very good video.
You didn't mention or I don't know if you took him to consideration the insurance on the lease vehicle , was that's already taken out in the deductions ?
Few expenses are skipped from Lease operator's pay. where is truck insurance and maintenance costs?
how much is the insurance for the Lease? is it included in the truck payment?
I am confused. For refer drivers comparison, Company drivers net pay was after payroll taxes but for lease operator there was no tax deduction? how is that a fair comparison?
Why is driver pay in Canada calculated in $0.xx Per Mile when the measure for calculating distance in Canada is in kilometers!!!???
Two things. You did not account For the value of the truck payment minus depreciation for the lease purchase... Also in the United States if you make over a certain amount you have to make quarterly prepayments.. there for you would not just be filing taxes at the end of the year.
Unfortunately, truck maintenance and expenses run $1.25 per mile on average, so not really a big difference. That difference is assuming no down time for repairs or sickness.
Some big assumptions!
Do you allow owner operators to book their own loads?
Not for me im a company driver. Teamsters union i drive local 80 miles a day. One hour lunch 4 weeks vacation 13 holidays 6 personal days. With a $2,750 pension went a retirement. 65,000 a year b/4 taxes. 5 days. Easy job. Im very happy.
Who do you drive for?
I don’t understand when you say Company drivers pay taxes weekly or something like that.And Lease Opps pay taxes yearly.Isn’t that the other way around?
Company Drivers are W-2 employees,Lease/Owner Opps are 1099 self employed I thought???
Well I looked at your site and you guys show $1.77 cpm for O/O. A driver can’t make it on that with a new truck payment and fuel…… you would be making around 2500/3000 a week after deducting. I make around 5k. Weekly after fuel and I get crap fuel mileage.
How is 2500-3000 after taxes not enough? That’s still more than most make as company drivers
I need a company to lease on with I have an 07 western star no trailer
I think if u match it mileage u come to real number 200 miles on van is under 400 dollars difference
This video isn't completely forthcoming. LO's have payments whether they're driving or not. That changes the spread considerably. Lease Operator is better if you're hard working, but this video is not candid.
the truck for leas is new one or used in ET?
Holly shit math matters .....3 rules in leasing ....1srt control your asset
2 get paid %
3rd most important being able to choose your loads
being able to choose your loads is a hard one if you are running load boars with a dispatcher. the good higher paying loads come and go very fast and the dispatcher has to call on them immediately to have a chance at getting them. so they really don't have the time to call and ask you if you want it. If they do so, the load is gone. If they take the load and then you deny it, well that can't happen very often or you get the rep for doing such and they will not use you. Best thing to do is tell the dispatcher what states you are ok running in.
Sounds like you give the leas drivers the better loads
A couple weeks can look great, but any business is run on quarterly. Sometimes even one quarter can be great while the other three wreck you. No maintenance hits on the lease guy sure helps. Company driving should be all about the benefits paid for, not really mentioned either, that the lease guy has to pay themselves. I know you are just giving a quick shallow look here, and its not with a bad intent, but the info could be deceiving for some. I am not saying that the lease guy wont come out ahead at the end of the year either, just that this video is short sighted for decision making.
Great video... thanks
Yes they make more but how much do they actually keep after they pay fuel?
So with your lease purchase you will own the truck at the end of it without a huge balloon payment?
Why you don't compare in same miles?
How do I get more info on doing a lease purchase with your company? 😊
Once the lease is up and you own the truck can you leave that company with the truck? Or even though you own it you still can't leave with it?
As a 29 yr company driver I never brought home a 6 k check I have been a 1 yr lease driver 360k highest check 8k take home ....so there is 3 rules in leasing
I have a 2014 cascadia and I own it free and clear
Lease operator ,before taxes
If you take in consideration the truck break downs plus time off become that you probably made no money at the very end
maybe made the same as the driver, but you will own the equipment at the end.
Great comparison
New here man ❤❤❤❤🎉🎉🎉🎉
$0.55 per mile is the reason people are leaving trucking. That is incredibly low pay in 2022 for the high requirements and HOS exhaustion expected of truck drivers. If I hadn't started leasing, I would have left trucking permanently this year. The hours have gone up, and the wages haven't at all for me personally besides going to a lease. I made more typing in an office than I ever did hauling cars, or diesel as a company driver just because of the hourly pay compensating all hours worked.
Any driver with experience shouldn't be driving for .55 per mile. I'm pushing .75 per mile with incentives plus profit sharing
@@matthewm9261 They just don't get it. Lyft pays way more than that. 🤣🤣 They pay $0.78/mile plus a $0.55/mile FSC. I can use e85 for $3/gallon still in Michigan getting 18mpg in my Silverado. Truck drivers are too smart for this incompetency to exist with salary.
$5,200 really net? Or does that leased driver has to pay income tax on that $... Also, this does not account truck maintenance which company driver does not have to worry about😊
Well you didn’t add truck repair exp if you add up it will be same either get your own authority or be a company driver lease is not worth at all and some point when truck will be 3 year old than components driver make more money vs owner operator
You looking for more lease purchase operator in the USA ?
To bad you're not in USA. So you pay every two weeks?
Should you expense truck insurance for lease operator?
1.55 $ for lease... comon is that a joke ? right now its 3$ a miles in Québec easy
In my opinion there leasing a dream....not reality
Ya here in the states lease we get paid 1$ a mile
I get 1.80 a mile flatbed after 400+ miles 2.00 under 400 miles.
While Ronen mentions that the lease ops pay taxes on the "take home" income ET pays, he fails to mention numbers. Even with the current (low IMHO) fuel surcharge ET pays, the lease ops are basically running to pay the lease payments, insurance, fuel, and taxes, with not a lot left over for themselves.
God help them if they have a major breakdown and the truck is out of warranty because then they're screwed, blued, and tattooed - and not in a fun way.
Rates being paid to lease ops simply MUST go up - there's no way around it. With the current economic situation, there's simply no benefit to becoming a lease or owner operator right now.
I have a question. I am 25 years old now. I've been driving a trucker since I was 22. And I'm not married, I don't have any dependents, I go home three to four times a year, and I spend between $500 and $600 a month on living expenses And I have about 180,000 dollars in my account (I'm an OTR trucker) and I'm wondering if I should do an owner operator next year or save a little more money, so is it okay to do an owner operator in my current situation?
work for crete, or swift or something that has an available walk away lease and give it a try.
I like to lease in ur company I am from Buffalo newyork how I can start?
It can cost 30 to 60 k annually to maintain a semi so the 48 k extra the lease operator spends us the difference if what the company driver didn't make...I know a very good lease operator who had to walk away because its too much for fuel and the tax bill he had to pay was hefty these are the hidden cost a company driver doesn't have to deal with.
If your spending that much annually to maintain the truck it’s time to dump that truck..
30 to 60 k? wow no one is paying that. more like 15 to 17 k.
That's a lie that a vehicle becomes yours after the end of the lease. You still have to purchase the vehicle..
Thank you for everything brother 🙏
Is this in usd or cad ?
how in tge world he can drive 7500 miles in 15 days period ?
Ya my balloon payment at the end is 50k. Wtf
Sheesh
Yeah that seems like a situation where you hand in the keys at the end, say “thanks for the rental”, and put a 50k down payment on a new truck.
Could you do Fb lo vs oo?
Who knows about Hurricane Express ?
What's the repair cost?
As with anything ronen greater risk = greater reward that's capitalism that's how it works so of course the o/o or lease driver is gonna make more what I need to know is what the industry as a whole is doing on driver retention that would be a subject of great interest
Thanks for sharing this 👍♐♐♐♐♐♐♐♐♐♐
Ok now look at the headaches tow bills break downs tire wear and all that the owner is on hook for
That cost is about .17 per mile... it also depends on how good you are at maintaining/driving your truck.