Owner or Owned

Hi, im new to the whole forum thing! Npt yet trucking but on route! Ive been looking round at the job situation and in my area its a bit grim! £8 an hour looks tops at most places!

Was wondering, to set yourself up as an owner driver, what start up cost and monthly out goings? There must be more money than working agency and for small companies, i dont mind working hard, but would prefer to work hard and earn more than beans and toast daily!

Just throw some ball park figures up for salary and average weekly hours if poss! Thanks

This question gets asked in many guises week in week out.

And the same answer becomes apparent.

No one will give away their rates because they don’t want the competition.

It’s not a hobby. You need 8ish grand in the bank as a bare minimum. You need a cpc holder ( if you aren’t one yourself). And you need to get approved for an operators license.

That’s before you have even thought about the purchase / lease price on a unit and the costs of fuel, maintenance, etc.

Best of luck to you in your venture if you go for it.

And welcome to the forum

NoTruck:
Just throw some ball park figures up for salary and average weekly hours if poss! Thanks

It’s far more complex than that.

Running even one lorry is more complex that running a van. Anyone with a category B driving licence (i.e. a car licence), a van with current MoT certificate, insurance for business use and for goods in transit can start a ‘man with a van’ business, parking the van outside their home at night.

You need an standard operator’s licence to run anything over 3.5t for hire or reward, which means you need an operating centre with suitable planning permission (parking a lorry on a residential street will not do!), a freight operator’s CPC (or the services of someone who has a CPC) and finance sufficient to satisfy the Traffic Commissioner. If you don’t stay on the right side of VOSA, your operator’s licence will ultimately be withdrawn.

As well as the finance required for the O licence, you need sufficient funds to cover the gap between incurring costs and receiving payment (which is a lot considering how much fuel a lorry can drink in a week). You are taking a considerable degree of financial risk - exactly how much depends on what basis you obtain the vehicle, repairs and maintenance. Ultimately it is a balancing act between hiring or leasing a newish vehicle (lower repair costs)Â and buying an older vehicle (higher repair costs, greater risk of breakdown).

Most of all, there’s no such thing as salary and average weekly hours. As an owner-driver in the current economy, you would have to do whatever you can within the driver’s hours’ rules to carry out whatever work you can get. Well-paid work is not plentiful - if it was, everyone would be rushing to be an owner-driver. It seems that the readily available work will struggle even to cover overheads, but people will take it at those rates because it pays bills they cannot otherwise escape or because any sort of backload is better than running to the next job empty.

There is real risk involved. If you are ill, your income is zero and you are incurring costs. Unless you can find work that exceeds your overheads by a sufficient margin, it may be cheaper to park up. Again, your income is zero and you’re incurring costs, but at least you’re free to take other work (even if it is multidrop van work for an agency).

The current situation is basic economics. There is an oversupply of LGV drivers and vehicles for the haulage work available in many sectors and geographic areas. This drives prices down and means there is a fight for sufficiently well-paid work. This is why nobody will give more than “it’s tough right now” answers - it isn’t in anyone’s commercial interests to help potential competitors.

Thanks for the reply.

Just some basic figures, it cost me £1,500 to get my CPC (you could get it cheaper if you did home study), it’s £250 to apply for an Operators Licence and then another £400-ish when it’s granted, you will need to show the TC that you have £7,700 of readily available funds at all times, and you will need to factor in buying diesel for 8-9 weeks minimum before you get your first income. You should allow about £150 a month for parking, around £200 a month for servicing, £400 a month for insurance.

so how does that £7700 rule work?

i assume?

i just need that sitting in my bank / available to met as a minimum but cant go below this or risk loss of o licence?

jjcymru:
so how does that £7700 rule work?

i assume?

i just need that sitting in my bank / available to met as a minimum but cant go below this or risk loss of o licence?

Exactly that. You need to show a minimum balance of immediately available funds of £7,700 for the first vehicle on your Operator’s Licence and £4,200 for each additional vehicle. The TC may well attach a condition to your O licence requiring you to produce bank statements covering your first 6 months of trading to show these funds.

What sort of pay do you get for different laods and what distances do you have travel just rough ball park figures. im planning on doing c + e at some point but cant see the point when the majority of jobs are the same pay as class 2. Is there any real money in owner trucking compared to being employed.

I can understand if people dont want to put down there salary on forum! I probably wouldnt but some rough guide would be great, PM me if u feel happier just really chewed off, 8 quid and treated like ■■■■■■

NoTruck:
What sort of pay do you get for different laods and what distances do you have travel just rough ball park figures. im planning on doing c + e at some point but cant see the point when the majority of jobs are the same pay as class 2. Is there any real money in owner trucking compared to being employed.

I can understand if people dont want to put down there salary on forum! I probably wouldnt but some rough guide would be great, PM me if u feel happier just really chewed off, 8 quid and treated like [zb]!

Well, you don’t get a salary if you operate your own vehicle, that’s the whole point. I am planning on paying myself around £800 a month, the rest will go back into the business.

If you have a Class 2 licence, then put a rigid on the road. The maths will be the same.

Harry Monk:

jjcymru:
so how does that £7700 rule work?

i assume?

i just need that sitting in my bank / available to met as a minimum but cant go below this or risk loss of o licence?

Exactly that. You need to show a minimum balance of immediately available funds of £7,700 for the first vehicle on your Operator’s Licence and £4,200 for each additional vehicle. The TC may well attach a condition to your O licence requiring you to produce bank statements covering your first 6 months of trading to show these funds.

But theres no point having it immediately available if your breaking the law by letting the balance drop to £7,699.

In reality you probably neeed 3x the required amount available to run and repair and keep within the law.

With regards to the readily available funds for the o licence it can be a agreed amount on a credit card overdraft etc but it must be in the applicants name, ie if your applying for a o licance in a ltd compenys name the said credit card must be in the ltd company’s name and not your personal name,to be honest you want to draw as little as possible as say a set wage and pay on that amount, bein an od is not all about makin shed loads of cash to be honest in this presant climate pound for pound employed drivers on good firms are probably takin home more money

Just to answer the point of making more money than an employed driver. I started with the much maligned white van and paid myself £90.00 (gross) a week in the early 90s for the first year and recklessly upped it to (IIRC) a £110.00 a week in the second year. It was so nice to finally be on a £1 an hour ( yes, I know, hours regs…). Now several vans and trucks later, I earn more than a standard driver, but tbh it was around 10 years before I became the best paid in the company.

If you have a burning ambition to be you own boss and insanely you love the haulage game, crack on. If you are doing it for money, re-train!

And yes, starting with a truck has to be harder than with a van.