Start up cost$

Discussion in 'Ask An Owner Operator' started by " OPTIMUS PRIME ", Dec 11, 2011.

  1. " OPTIMUS PRIME "

    " OPTIMUS PRIME " Light Load Member

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    Actual Road Cost$ - $39,500

    Truck Downpayment - $6,000 + $1,000 =$7,000

    Reefer Trailer - $8,000 + $1,000 = $9,000

    Insurance/ DMV - $5,000 + $1,000 = $6,000

    Fuel - $10,500 + $1,000 = $11,500

    Repair -$5,000 + $1,000 = $6,000

    I think this should do it, and we are almost their. Teams and 4,000 mpw. We hope to get more at some point but this is realistic.

    I hope you get it!! My point in this example I estimated an extra $1,000 for each, just in case #!*% happens. And trust me it WILL! :biggrin_2559:

    Can you imagine having a breakdown, get the repair bill, and can't actually pay for it. I mean really CAN NOT pay for it!! Wow, that would suck! Now what, you are in the middle of nowhere and no more funds.

    Failure!
    I'm not going to be one, got to much riding on this and allot of people wanting me to fail. (Misery loves company) I hope this helps out some who has been wondering about true start up cost$. Now of course this isn't mandatory but it is highly recommended.

    If I left out anything please fill free to chip in.
     
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  3. blackw900

    blackw900 The Grandfather of Flatbed

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    This is WAY TOO LOW....It needs to be twice that much minimum!

    I recommend $20,000....
     
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  4. " OPTIMUS PRIME "

    " OPTIMUS PRIME " Light Load Member

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    10.4, This is why I love this forum, it's best to make the mistakes in the comfort of my home vs out on the road.:biggrin_25521:
    Can I ask though, even with a 2yr warranty?
     
  5. kw600

    kw600 Road Train Member

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    Optimus prime, is that your estimates start up cost for a single truck company? If so you forgot about permits and fees for filing for your own authority which start at $300 and add up...
     
  6. blackw900

    blackw900 The Grandfather of Flatbed

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    Is it a used truck?
    Did they "sell" you the "warranty"?

    Because if it is I can pretty much guarantee that the "warranty" won't be worth the paper it's written on.

    A single mid priced breakdown can easily cost you close to $10,000 with towing and all of the things that can add up very quickly when something goes out on an engine.

    If you don't have access to enough money to offset the cost of the breakdown...What will you do?
     
  7. kw600

    kw600 Road Train Member

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    Well said BlackW, its an awesome idea to have that kind of money in case of a brakedown; even with a "new" truck you never know what could happen. If you don't physically have the money on hand most people just use their credit cards and say they'll pay it off later and than somehow end up with massive amounts of debt and get nowhere
     
  8. " OPTIMUS PRIME "

    " OPTIMUS PRIME " Light Load Member

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    Yes, this is for 1 truck, I didn't forget. I just was talking about the basics to give an idea.

    Not trying to be in this situation EVER, and that's why I'm here.
     
  9. milskired

    milskired Road Train Member

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    Just out of curiosity, why dont you try and get a truck that is less expensive and can pay for in cash? I mean the 2 year warranty is a good deal and all depending on the fine print in the paper work. If you did breakdown with a truck thats paid for, you dont have to worry about a truck payment for the week if its broke down for say 4 days.
     
  10. blackw900

    blackw900 The Grandfather of Flatbed

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    It's a very easy situation to get into....That's what I'm saying.
    Last april I had a single breakdown that cost me $7,200, That's $1,200 more than you want to start with in your maintanence fund.

    Not a good idea if you ask me.

    Starting up without enough money is almost always a recipe for disaster...I have a friend that started out with almost no money and has been running for 3 years now and still has almost no money because he can't ever seem to get ahead of his costs.
    He loses a lot of valuable time dealing with the results of poor cash flow.

    He has also been fortunate enough to not have a really serious breakdown in that time because he has told me more than once that if that was to happen he'd just park it and "walk away from it."

    He's a pretty good guy but he's obviously a terrible business man.
     
  11. " OPTIMUS PRIME "

    " OPTIMUS PRIME " Light Load Member

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    To be honest I don't TRUST anyone to buy a cheaper truck, and the truck I want costs $30k.

    I aggree with you on the whole breakdown without any payments thing, but having a warranty just feels reassuring.
     
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