Unveiling the Paycheck Showdown - Lease Operators vs. Company Drivers 💸

Unveiling the Paycheck Showdown - Lease Operators vs. Company Drivers
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In this highly anticipated video, join Ronen as he delves into the financial realities of the trucking industry, answering one of your most-requested questions: Who makes more money, Lease Operators or Company Drivers? In the midst of today's economic challenges, Ronen takes a deep dive into the paychecks of 3 Company Drivers and 3 Lease Operators, unveiling the stark differences and addressing the crucial question: Are Lease Operators still thriving in today's recession? Don't miss this eye-opening comparison that could reshape your perspective on trucking careers and earnings!
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📚 Chapters
00:00 Introduction - Are Lease Operators Profitable?
00:45 Is it worth it to become a Lease Operator?
01:11 Case #1 - Company Driver - Van/Reefer Division
03:07 Case #1 - Lease Operator - Van/Reefer Division
06:17 Case #2 - Company Driver - Van/Reefer Division
07:31 Case #2 - Lease Operator - Van/Reefer Division
09:05 M7 Tax Inquiry Form
09:57 Case #3 - Company Driver - Flatbed Division
12:41 Case #3 - Lease Operator - Flatbed Division
13:51 Conclusion - Is it worth it to become a Lease Operator?
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[@Albertalorian]

I was an O/O from 2018-2022, I paid off a new truck (Bank Financed), leased on to 3 different carriers in that time. I sold the truck in March 2022, and went local hourly in a daycab with one of the companies I was leased onto. With how the industry is now, I would not be a Leased on O/O, Lease Op, or Lease Purchase OP PERIOD! Its hard to watch to many people go under, just trying to pay for a truck.

[@jalenmackall6743]

Paid off equipment O/O isn’t so bad

[@Albertalorian]

@@jalenmackall6743 the cost of repairs, tires and service outside of warranty in 2023, was more than my truck payments. You’re right tho, paid off equipment O/O can work, but it’s tough as hell.

[@treyfeeley2519]

Great video as always! I don't think I will do lease ops anytime son! I don't think a company would be as fair as you are to your drivers. I am blessed to work for a company in a dedicated lane that has stayed busy! They always have weekend loads and extra loads !! I know freight is slow but, why are companies still hiring when there isn't enough work for current drivers???

[@paullogan9960]

Watch you on the TV! Keep up the GREAT VIDEOS PLEASE!!! Being a lease operator I have 3 advantages that a company driver does not have. Keep min mind that I was a transporter. 1) I don't have to! 2) I don't want to! 3) You cain't make me! I did not turn down many loads, But sometimes west coaast would try to guilt trip me into doing some thing they wanted. I once had words with a dispatcher on the east side. I told her I bought a truck to go west. ( East side was N-S slide 200 to next move). I was happy doing my joyriding!

[@j-dreethesteeringwheelhold2930]

So from 2020 till now i know he must have atleast 2 or 3 lease drivers that will be completing the lease program in 2024. I hope he does a updated video acknowledging them, and letting us know what the fair market value is, for their trucks at the end of the lease.

[@midlifetrucker-thombell4722]

I’m a W-2 company driver. I compared 2021’s final pay statement to 2023’s week 51. In 2021, I had 140,223 miles and in 2023, I had 141,237 miles and there’s still one more week to go. I can say that I’ve had no decline in miles. Pay was $101,188 in 2021 vs $108,320 in 2023 (with one week to go). You video does make a driver compare and think.

[@Dean-pc1ok]

Bro, that's terrible pay for lease operators. One tow job your year is ruined lol. Your company driver pay seems nice

[@rogerg0834]

❤ That's the gamble when you lease or lease Purchase 1 repair 1 flat tire, one major repair and you're done.

[@Darkrider8893]

Well if you were smart you would save and put money away before becoming a lease operator. Also most companies will cover the repairs and take it out of your pay later. So no your not going to be ruined because of one breakdown

[@keithmorgan4883]

@@rogerg0834 one flat tire isn’t Gonna ruin you if you have money saved. It’s only a few hundred bucks.

[@rogerg0834]

@keithmorgan4883 true. However, the vast majority of people that go lease or lease purchase have NO idea that one trailer tire or tractor tire can cost $800 or more, $1100, ea. So, if you're netting$4500 per week, BEFORE, income taxes, that week is a wrap. Most have NO idea that you actually have to work HARDER as a lease/lease purchase to stay out of the negative. Not less because the bills are due weekly, not monthly. Income taxes as a 1099 can be as high as 15%, depending on how you set up your LLC.

[@keithmorgan4883]

@@rogerg0834 if I was a lease operator I would live out of that truck there's no way I would have other bills.

[@philliplinkous6393]

Thanks

[@mikeleggiero2524]

As a o/o i payed my self 30 percent of the load . As a company driver for a friend i get 30 percent truck is leased to the same company. The only difference is he cover my taxes and my perdem. I pick my own loads and work with the same agents as i did when i owned the truck. I was a o o for 22 years just did want to own a truck and trailer any more. On avg the truck grosses 6000 a week.

[@kennethmiller5753]

Don't do it,it's a well designed controlling scam! 😂

[@junkyarddog76]

2300 a week isn’t enough. Truck maintenance per year on average is 14,000. Beyond warranty! These lease drivers will go broke eventually. There is no way. Remind you all this is Canadian money too. 1.76 say what? This must be a joke. Hate brokers who think truckers are making big money on low rates. Fuel pump is 7500. Fair market value. Sure. How many different leases do you have per truck. When one goes bankrupt you just lease to the next.

[@willarddevoe5893]

I learned a lot in this episode. thanks

[@NorthAmerican-Trucking-News]

no problem!

[@jeffroberts743]

After taxes are paid theres about a 260 difference between the two.

[@CoopDeville870]

Quick answer don’t waste your time watching this. The answer is no. Do not lease and lose.

[@roncreach753]

I've seen some of our lease operators annual statements. They make a little more than what our solo driver make but nowhere near as much as what our trainer drivers make.

[@MrSkill_420]

What is ET's motivation to allow drivers to Lease Operate if they lose ~3000/mo doing it/

[@John-kr7iz]

merry Christmas everyone!!!

[@JoshuaTerence38]

Happy holidays too you too

[@John-kr7iz]

thanks Joshua! @@JoshuaTerence38

[@NorthAmerican-Trucking-News]

We hope you had a happy holiday!

[@sarysa]

"3000 miles per week is on the low side..." Christ. Can't wait for my "apprenticeship" to be over so I can get my own truck and have the agency to set up at least "low mileage". 😹

[@lukeskywalker81]

What happens if tht lease operator blows a couple tires out needs a def filter cleaning?

[@duncanosinchuk5053]

What’s your toke Ronen? Dispatch, administration, fuel cards? All that stuff. You have to be taking at least 20% of gross. I’m an independent that won’t work for anybody who won’t hire my trailer too.

[@celeditomorales7824]

👍👍👍👍❤️❤️❤️❤️ good information

[@NorthAmerican-Trucking-News]

Thanks !

[@cupko1986]

Don’t drive right now, save your CDL and your sanity

[@realestalive9572]

Why

[@cupko1986]

@@realestalive9572 worst market in 30 years

[@ShortySmoov2u]

The numbers don’t add up, considering safety, importance, hours spent working, skill set, time away from family and home, especially for company drivers. Miles vs time spent on duty.

[@NorthAmerican-Trucking-News]

There are a lot of variables so it will always be challenging to have an extremely tailored final value

[@ShortySmoov2u]

For the company driver… how many hours were spent on duty for that two week period???

[@victormejia512]

Lease operates with out tax so your not ahead 😂. Company driver wins hands down

[@Darkrider8893]

Not true. The lease operator has tons of deductibles, and if they do it right they will pay less taxes than a company driver. Last year I payed nothing in taxes as an owner operator

[@kickass-dm6ew]

If you’re canadian isnt it illegal to haul loads that stay in the usa?

[@joshuaroe3021]

After taxes lease op is only making 2-4 hundred more every two weeks. Not worth the liability

[@ronaldbertin9455]

If your truck isnt paid for Its hard to do nowdays I would never invest money to buy another truck.

[@evidenceofaliens6991]

3rd!!!

[@frankbgaming]

How do you guys come up with 4% vacation pay?

[@hotlkone]

2 weeks per year

[@Demi.1133]

Being a lease operator make absolutely no sense. Why would you take on the responsibility of things you don’t have to in order to be making the same amount of money or less than a company driver ? It’s like people don’t understand that the lease option is there “FOR THE COMPANY TO WIN” Not the driver. I don’t know man I guess a lot of people aren’t really common sense savvy, to each his own.

[@trucking702]

in a good economy maybe lease is good. Right now is bad to be owner op or leaser

[@Darkrider8893]

Thats not true at all. As an owner operator I make way more than a company driver does, and last year I didn't have to pay anything in taxes. I would never be a company driver again, unless I wanted to be broke

[@mattyp3860]

Trucking Work long crazy hours for chump change

[@Darkrider8893]

You sure about that? I pocket $3200 every 4 days and that's after my running expenses. Owner op is the way to go

[@ronaldbertin9455]

So what did the driver make per hr? Mm

[@bolisongcoastalliving3152]

Company drivers get some benefits, medical, dental etc paid vacation holidays lease doesn’t get anything

[@Darkrider8893]

I'm an owner operator who has all of those benefits. It's all on what company you work with

[@jeffschott1209]

Hustler

[@veniaminpetrashishin9466]

Over the road trucks now have to ask for 500 dollars a day salary let’s see how the housing market thinks their old crappy houses are worth then

[@maschngon]

I’m owner op. If I drive 3000 miles I make $4200 after fuel and insurance

[@SP-lx4bi]

A week?

[@Darkrider8893]

I pocket $3200 every 4 days. That's after all my running expenses. Owner op is the way to go

[@maschngon]

@@SP-lx4bi yes

[@kuda675]

Your truck is paid off right??

[@kuda675]

@@Darkrider8893your truck is paid off right??

[@garyroach3479]

I've done the math and if you're not running that truck for at least $4 a mile or better than you're losing money and that's simple truth and u never lease a truck from anyone u out right buy the truck bc u getting shafted as a person who leasing a truck and never lease ur equipment to a company bc they say ur a independent contractor but in reality ur are a payed employee but ppl still can't figure that simple thing out or understand thing in trucking industry bc as an independent contractor u should never have to pay for any services that company company provides inless its clearly written into contract and most ppl never truly read the lease agreement and take it to a lawyer to go over before signing them and if company won't allow u to take said lease agreement to lawyer to go over the fine print that company u stay away from period

[@Dean-pc1ok]

Who is getting 4 dollars a mile regularly now lol

[@willjones4630]

That was the longest sentence, ever! Hard to follow it without punctuation.

[@Dean-pc1ok]

@@willjones4630 we are uneducated truckers you seem to forget lol lol lol... most guys haven't finished high school

[@loadsonroads]

Second example, rate per mile 0.54 cents per mile vs first example - 0.60 cents per mile🤔

[@SleepyWoozie]

I would assume it’s experience.

[@robertpolkamp]

It is always a bad idea to lease a truck from the same company you depend on for your revenue, ALWAYS!

[@peterohmart5954]

You did not say the lease driver had to deduct money for his benefits which a company receives. This is your company and most companies are not like yours.

[@lisaharris6091]

Looking for a company job 2 company s offered inly lease . Tried to lie to me and i called it and i walked away

[@my1vice]

Pretty fast talker.... Comparing post deduction Co driver to lease income before tax and other required deductions. You should have used the 3,700 figure for the Co driver.... Because both have to pay taxes. No wonder folks get hosed with these leases.

[@yahsuniverse7380]

I make 2000 a week as a company driver and home daily

[@NorthAmerican-Trucking-News]

👍👍

[@chernitu2080]

Maybe just your company????

[@jasonangus9615]

The lease operator is making less money after they pay taxes.

[@tann0522]

4k every 2 weeks is not worth it as an O/O or a L/O.

[@nicholas8793]

So pretty much after you pay tax as a lease operator you make lease money. Smart

[@Darkrider8893]

No. Owner operators have tons of deductibles and can absolutely pay less taxes than a company driver. Last year I payed nothing in taxes as an owner operator. You just need a good tax preper

[@NAVJOTSingh-rj4mj]

This is complete bullshit after driving 5800+ miles and making less than $3000 as company driver. Complete bullshit.

[@richierich8359]

I run 2800 miles a week. I bank 1750. I have insurance, PTO, 401k and never run out my 70hrs. 5 days a week, 6 if I want it. Hopefully I never find owner op being a better move because that’s what I set out to do when obtaining my CDL. 5 years in, still drive my baby-sitter truck(Lytx camera)!

[@titov.7749]

Smdh!! So these guys _< if they work every single day like no days off are averaging 300 to 400 miles a day if lucky and making 200 to under 300 daily as a trucker whom sacrifices so much😮 jeez not kool.. Also you always forget to mention Ronen that yoy guys are the ones who limit their income the most with the 65mph trucks ; anyways, big questions are if this is all they're doing or averaging between 3-400 miles a day right,what are they doing with the other half a day's work ??

[@kuda675]

Lease operator is a company driver with no benefits it’s not worth it..

[@fatbastard7539]

It's not a return, it's a refund. The return is the form you fill out to get the refund.