After our last car died, my husband and I decided to do a little research before buying a new car. We bought the previous car without a lot of thought, and it showed. Instead of lasting the length of the loan, the car started having problems right around the time the warranty ran out. We decided that it would be smart to invest a little time into research, so that we could avoid making a similar mistake in the future. This blog is a collection of articles about cars and automotive accessories, so that you can do a lot of research without making a lot of effort.
Whether you currently work as an over the road (OTR) trucker and are interested in transitioning to owner-operator, or you simply want to get started in the world of trucking by owning your own rig, you may be wondering where to begin. Purchasing a new or used truck can be a significant expense (even if you purchase the truck you're currently driving), so it's important to do your research -- both before purchasing a truck and before pulling the plug on your driving career to become a business owner. Read on to learn more about what you'll need to consider during this process.
How should you select a truck when transitioning to owner-operator?
By far your most important asset as an owner-operator (other than your own health and driving ability) is your truck. As a driver, you may not have minded much when your truck spent a few days in the shop, taking advantage of the time off by performing tasks around the house.
As an owner-operator without a reliable vehicle, you won't be able to qualify for high-dollar jobs and may not even be able to complete your normal routes, losing pay for each day your truck is in the shop rather than on the road. For this reason, it's important to be meticulous in your truck selection and to abide by all recommended maintenance schedules after purchasing your truck to prevent future issues.
If you don't trust yourself to select a mechanically sound vehicle, you may want to enlist the help of a mechanic friend to thoroughly inspect any trucks you're considering purchasing. Barring that, you can opt to take a vehicle you're interested in to your trusted mechanic for an inspection before making an offer. While a reduced-cost truck with some imperfections can be tempting from a financial standpoint, you'll want to ensure you can afford any repairs that will be necessary to restore it to good running condition.
It's also important to keep your driving lifestyle in mind. If you prefer short trips that don't keep you away from family for long and stay at inexpensive motels, you won't need the deluxe rig with bunk beds. On the other hand, if you're planning to spend weeks at a time on the road, you can save significant travel expenses by purchasing a sleeper truck that will allow you to enjoy a home away from home.
Visit a site like http://www.arrowtruck.com/ to learn more about trucks you could benefit from purchasing.
Will you need additional insurance as an owner-operator?
As a driver, you were likely covered by your company (at a slight reduction in your per-mile pay). When becoming an owner-operator, you'll be fully responsible for any damage to your rig or shipment (as well as damage you may cause to others). You'll need several types of insurance that will cover your rig, your cargo, and any damage caused to others by your vehicle or negligent driving habits. This insurance is vitally important to help protect you from being sued after an at-fault accident, and skimping on coverage could be an expensive mistake.
What else should you consider before making this change?
Becoming an owner-operator comes with a number of legal and financial risks. However, these risks are equal to the potential reward of this career change, and you could provide your family with a very comfortable living or retire early by making wise choices during this process.
It's important to ensure that you have enough of a financial cushion at any time to withstand a major reduction in pay. You'll want to avoid living off your higher earnings without setting some funds aside for downturns in the economy that reduce the jobs available, an injury or disability that leaves you unable to drive, or major vehicle issues that keep you off the road for weeks. If you're living paycheck-to-paycheck as a driver, it may not be the right time for you to become an owner-operator until you've saved up some additional funds or received an inheritance or other windfall.
Share10 September 2015
