A Few Myths About Being An Owner Operator Corrected
Posted on: 21 February 2017
Having a career as a commercial driver can be an excellent way to earn a living, but many drivers will fail to seriously attempt to become an owner operator. This can severely limit your career options as a commercial driver, and you will want to make sure that you know the realities about several owner operator myths so that you can make an informed choice about making this change for your career as a driver.
Myth: Only Individuals With Perfect Credit And High Incomes Can Get Financing For Commercial Trucks
In order to afford a large commercial truck, most drivers would need to utilize financing. Unfortunately, people may automatically assume that they will not be able to be approved without ever filing for a loan. There are numerous ways that a driver could get financing for a new truck despite having problems on their credit report. For example, it may be possible to overcome issues with your credit history through paying a higher down payment or using other collateral to secure the loan.
If you do not have a very high income, you may be able to count the money that you expect to earn from the truck. When you are calculating future earnings with the truck for your loan, make sure that you keep your estimates realistic to minimize the risk of being unable to afford the loan payments.
Myth: You Will Need To Sign An Exclusivity Contract With A Shipping Company
One of the greatest advantages of being an owner operator is that you will have the ability to choose from a variety of shipping companies when you are looking for work. In fact, you will likely be considered an independent contractor, which will entitle you to choose whether or not you want to accept an assignment. This will allow you to limit your driving time to the highest paying trips so that you can generate the most income possible.
Myth: Fuel And Insurance Expenses Will Make Being An Owner Operator Less Profitable
When you are an owner operator, you will be responsible for your fuel and insurance costs. However, you may not need to worry about these expenses eating into your profits as you will be able to declare these business expenses on your taxes. This can help you to recover these expenses when you file your yearly taxes. However, you will need to keep records of any expenses for your deduction to be approved.Share