Originally Posted by TBigLug

This has been a very informative thread for me. Like everyone else, I'd like to thank you for putting this information and your insights out there. As a relatively new driver to the trucking scene, I'm left with a few questions that might just be from my inexperience.

1. Going back to the whole paying back heavy highway use taxes on a truck that has set for a while. If I buy a truck that has been off the road sitting in somebody's back yard for 4 years, do I have to pay $2,200 in back taxes to use it?
More than likely you won't especially if you have a copy of the last 2290 that was paid. It would be good if you can document that the truck has been sitting for all that time.

2. What if I buy an old farm truck? Do they pay the same tax?

Yes unless they purchased a farm tag and didn't go over the miles that a farm truck is allowed to go. Which I believe is 5,000 miles per year.

3. As far as the participating state taxes and such, do you have to pay for each state you haul loads to, or just the state your company is based in? How would you know what states you are going to haul to if you are getting your loads through a broker and are relatively random?

The first year you buy a IRP Tag is normally the cheapest as it's all estimated/minimum mileage that you are paying for. The second year is when you have some idea of the states and the miles that you ran in each state. It's best to add all the states the first year unless you know for a fact that you won't be going to a state EVER.

4. Would it be best to start with just a used truck?

If I were going to buy a used truck I'd probably buy from one of the larger fleets as they DO have maintenance programs and go by them for the most part and will have the most complete records. Some individuals will have excellent records and some won't. That depends on the person. The bottom line is any time you buy a used truck or any vehicle or anything else you are buying a pig in a poke. Here's the steps and things I'd take in to consideration if I was buying a used truck or vehicle.

It depends on the truck, the mileage, what the computer records say, the oil sample results taken from the engine, transmission, and rears. Plus a lot of other things like: how well it was serviced, types of loads it hauled, if it was in any accidents, has it been painted, etc.
If you are buying from a dealer and they are willing to sell you an extended warranty for it then in most cases you'd probably be safe buying the truck.

I'd hire independent reputable mechanic/shop (not the dealer or individual's mechanic) go over the truck, pay the price for getting this information you need unless you are a cracker jack mechanic and even then I think it's wise to have another set of eyes looking at the truck.

Get their findings IN WRITING and make sure it's legible! This is something that I'd do EVEN if the dealer was willing to put an extended warranty on the truck because the bottom line is that YOU'LL be the one sitting when the truck is in the shop not the dealer.

If they won't let you get an independent report on the truck, then you don't want the truck and you don't want to do business with that dealer or individual.

You just have to decide if you want to take that chance. If you are thinking about buying an extended warranty, then READ IT and talk to the warranty company BEFORE you drop a dime. I never listen to the salesman as they are getting the commission and they get some from the warranty company too in most cases for selling the warranty. Keep in mind that the all extended warranties are NOT going to cover everything, they normally cover the drive line, rears, engine etc. All of them are different and the cost varies depending on the coverage. If it's NOT in writing then it's NOT covered period. Another good thing is to take someone with you when you talk to a dealer or individual so that you have a witness to any statements they make about the vehicle or warranty. In some states a verbal warranty is enforceable IF you can prove it, to do that you need to have a witness.

I'd look into your states lemon laws on used vehicles as well. You can also go to the sites that I'll list at the end of my response to this post and check out the dealer, the warranty company and the truck to see if there have been any complaints or safety issues.

Listings of states with Consumer Protection Agencies Here
Federal Fair Trade Commission
U.S Consumer Product Safety Commission
Damages to a commercial Vehicle must be reported by states (PDF)

What it basically boils down to is I'd like to become an O/O. I'm looking at purchasing a 2000 T2000 for around $20,000, a used 2001 reefer for about $7,000. My loads would probably all come from freight brokers until I could line up some contracts. I don't know how I could pull $15,000 out of the air to start up after all the initial costs were paid but that's neither here nor there, that's on the to do list.

I'm sure I'll have some more questions after I reread this post and let it sink in a little more. I apologize if my questions for my business plan are in the wrong section. If so please let me know and I will relist it in the appropriate forum. Once again, thanks for all the good info.

The bottom line is be informed and do your homework. I know I make it sound hard, but I figure forewarned is forearmed and this is an investment so you need ALL the information you can get. I'm sure that some of the other members can add to what I've said. Thanks for the kind words, I do appreciate them.
Good Luck and keep us posted!
NW

Used truck. Yes! From BIG Fleet, Well, that depends. They do maintence, but usually with the thought that they are only gonna keep truck for 400 to 500K.

Need a business plan? I can help you out with a template, and guidelines.

As far as the USed 2001 reefer for $7000, BUYER BEWARE!!!!!!, Thats too GOOD to BE TRUE.

As far as start up costs after equipment purchase / finanace. That $15000 is conservative, and EXTREMELY IMPORTANT!!! The easiest and quickest way to fail, is to try and start out on less than shoe string budget.

Get your Ducks in arow, and your finances. You can do it!

TBIGLUG,
Meant to ask, have priced your Liabillty, Motor Cargo, and Workers comp yet?
I can recommend a good agent for that, and also a few really good brokers for reefer freight. PM Me. If interested.

Good luck.
CBT

Originally Posted by NightWind

Back in the 70's that was possible. In todays world lenders and clients both look at your financial records, the planning, goals and time spent creating your business. Those things that you have planned are more important to them in some cases than they are to anyone else. Why would they give anyone a multi million dollar contract that doesn't have the foresight to make a sound business plan, that covers the normal and emergency situations of the business world. Trucking is a slim margin profit business and it's a very cut throat business now compared to the 70's when trucking was regulated and about the only way to obtain your authority was to purchase the rights of an existing company.

Nightwind, What do you mean by cut throat business? When people start talking about screwing someone else or the negatives of a business venture it sure would be helpfull to know specifics about your experience becuase you sound like you have knowledge that we could all learn from.
Thanks..