Thinking about your options as an owner operator? Let’s compare.
Leasing to a Carrier
Pros
- They handle authority/MC number
- Insurance through carrier
- Fuel cards/discounts
- Load board access
- Less paperwork
Cons
- Percentage taken off loads
- Less control over rates
- Must follow their rules
- Limited negotiation power
Typical Costs
- Percentage: 10-25% of gross
- Deductions vary by carrier
Running Under Your Own Authority
Pros
- Keep 100% of freight revenue
- Full control over loads
- Negotiate your own rates
- Build your own brand
Cons
- All liability on you
- Insurance costs ($8,000-15,000+/year)
- More paperwork/compliance
- Must find your own loads
- Factoring fees if needed
Startup Costs
- MC Authority: ~$300
- Insurance: $8,000-15,000+/year
- UCR: $60-6,000 (based on fleet)
- BOC-3: $25-50
- ELD: $200-500+
Which is Right for You?
Lease on if:
- New to owner operating
- Want less hassle
- Consistent freight important
- Limited startup capital
Own authority if:
- Experienced operator
- Strong broker relationships
- Want maximum earnings
- Ready for business management
Hybrid Approach
Some O/Os:
- Run under own authority primarily
- Lease on occasionally for specific freight
- Best of both worlds
What’s your experience? Share below!
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