From Driver to Owner: A Comedy of Trials

There may come a time in a long haul trucker's life where he wants to leave the the simplicity of being a company driver, and to enter the exciting world of being an independent contractor. While a company employed driver is assured his miles and loads, pay and benefits, an independent contractor is his own business entity, whether incorporated as a Limited Liability Company, or doing business under his own name (Kostas, 2012). The first step in him becoming an independent contractor, in this case, is procuring commercial equipment adequate to his needs. This in and of itself is a difficult step, an obstacle to financial freedom, as attaining the necessary equipment can be a daunting task. Whether he decides to locate a lender, buy from a “lemon lot”, lease equipment, or lease to own, he may find it difficult to proceed successfully.

A common method for a driver to acquire his first truck is through a loan through a private lending organization, like a bank or an investment institution which helps to underwrite small businesses (Jacobson, 2008). The upside to this is that the equipment is paid for in full, so the seller is satisfied, and the purchaser needs only make his monthly payments on time. The downside to this is that lenders charge interest, and based on the borrower's credit rating, it may be prohibitively high, or require additional collateral or a cosigner. Additionally, due to the risk involved in lending for this sort of equipment, many smaller lending bodies may not actually lend for the purchase of a commercial vehicle.

Another method for him to attain his needed equipment is to find a “lemon lot”, commonly referred to as a “buy here/pay here” dealer (Jacobson, 2008). The upside to this method is that it may b...

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Works Cited

Barabas, S. (n.d.). Truck Leasing 101: Complete Guide to Semi Truck Leasing. Truckers Report. Retrieved December 22, 2013, from http://www.thetruckersreport.com/leasing-article/

Harrington, A. (2012). Where There’s a Will, There’s a Way. Occupational Health, 64(3), 27. Retrieved December 22, 2013, from https://www.betheluniversityonline.net/cps/LinkClick.aspx?fileticket=31jzvWSJAWQ%3d&tabid=95&mid=481

Jacobson, H. (2008, August 18). 5 Ways to Finance a Used Semi Truck. EZine Articles. Retrieved December 22, 2013, from http://ezinearticles.com/?5-Ways-to-Finance-a-Used-Semi-Truck&id=1420924

Kostas, D. (2012, October 28). The Essential Differences Between Owner Operators and Company Drivers. EZine Articles. Retrieved December 22, 2013, from http://ezinearticles.com/?The-Essential-Differences-Between-Owner-Operators-and-Company-Drivers&id=7354532