We get many applications and inquiries each month here at Paramount Freight Systems from truck drivers who are interested in making the leap from company driver to Owner Operator or Lease Purchaser.
As one of the premier transportation companies in North America, PFS is always looking to talk to qualified drivers about possible job opportunities as our company continues to grow. But unfortunately, not all of them meet the qualifications.
In an effort to help future applicants, we’ve compiled this list of six obstacles to becoming an Owner Operator or Lease Purchaser. Read our list and let us know what you think.
A Driver Without A Truck
To sign on as an Owner Operator or Lease Purchaser, you’re going to need your own truck. Drivers must have a tandem axle or sleeper tractor that is not more than 10 years old. If you don’t have one, we can help you lease one through our partners.
Poor Driving Record
We’re all about safety here at PFS. That is why one of our requirements to become an Owner Operator or Lease Purchaser is to have had no preventable accidents within the last three years. So make sure you keep a clean driving record and watch out for speeding.
Lack of Experience
We require drivers to have had at least one year of verifiable experience as a truck driver within the last three years. We’re looking for drivers who have a Class A commercial driver’s license with HazMat and Doubles endorsements.
Not Understanding the Costs Involved
Sometimes applicants run into a problem because they don’t realize all the costs that are involved in becoming an Owner Operator or Lease Purchaser. You’re not a company driver anymore so you have to buy or lease your truck, take care of maintenance and pay for your own fuel and insurance.
Lack of Business Sense
As an Owner Operator or Lease Purchaser it’s like you’re running your own business, but not everyone is ready for that leap. This means keeping track of all your expenses and making sure you’re making enough for you to live on. Your expenses cannot be greater than your income.
Not Understanding the Tax
As an Owner Operator or Lease Purchaser, you’re typically a self-employed commercial truck driver. This means you’re a sole proprietor and must include business income when preparing your income tax return. You have to be thinking about quarterly tax payments, business records and the whole bit. Keeping your head in the sand when it comes to taxes is not a smart move.
What do you think of these Owner Operator and Lease Purchaser stumbling blocks? Got more tips to offer, comment below.