Pen to Paper...

Discussion in 'Ask An Owner Operator' started by Disgruntledriver, Oct 31, 2014.

  1. Disgruntledriver

    Disgruntledriver Light Load Member

    I would like to ask very specifically about purchasing a rig.

    Let's say I have been driving trucks going on two years. Let's say my credit is very good and I do not have a lot of debt or anything derogatory on it, not even one late payment my entire life. Now, let's say I want to go buy a tractor and a trailer. How long generally is it before the first payment is due? Let's say I'm going to purchase a flatbed trailer, how much "truck" can I get? I see a LOT in the 80k range that doesn't look too flashy or new, but doesn't look like it's old, ghetto and just crossed over from TJ. Would I be able to finance a truck in that price range? What about a trailer? I see a lot of places advertise "0 down", can you get 0 down financing? If I want to go off of load boards for awhile, which I'm learning a lot of flatbed drivers do, will that hurt me being able to get financed? Or do I need to show some sort of guarantee from a company for freight to get financed?

    Thank you kindly for any help.
     
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  3. Hurst

    Hurst Registered Member

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    This is just my personal opinion here. So dont take this personally as an attack against your character or anything like that. But it looks to me as if your trying to put the cart before the horse.

    If you dont have the money for a decent down payment,.. trying to be an owner operator with no or little money is asking for problems.

    There are so many other expenses involved. Base plates, insurance, fuel, registrations, permits, repairs, maintenance, licensing. I'm not talking a few hundred dollars,.. were talking thousands to legally get started. And this is before you even make the first payment.

    Go run as a company driver for a couple years. Sock away as much cash as you possibly can. It will be brutal,.. especially toward the end when you know all the BS you've been through will finally come to an end. Suck it up and do it the right way. Dont get into something in a way that failure would be a 90% probability.

    I did it and I ran for a tyrant to get my seat time in. Then ran for another 1.5 yr for a good company and finally made my transition to O/O. I started with nothing. I worked my tail off. Self control is the key imo. With out that you may as well flip burgers and have people micromanage your life.

    Hurst
     
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  4. Disgruntledriver

    Disgruntledriver Light Load Member

    I don't take offense at all, and please don't take offense to this but I feel like I just got the standard response to "I want to become a truck driver and buy a fancy red peterbilt". I don't know if you mean that much more time, but my profile shows and I did state, I've been driving trucks now for 2 years. I've driven dry van, reefer, flatbed, van and containers in all kinds of situations and circumstances. The thing is, trying to take care of people, paying bills and living has taken that money and I haven't been able to save up a lot. NOT to say I couldn't find a way, but I figured if I was able to get some loads going and start working hard, depending on how far out the first payment is I would be able to cover my expenses. I don't know, maybe not? Maybe a very small business loan would help assist me in the start up costs or maybe I need to save up 5-10 grand? Either way, I know there is still a TON of things for me to learn, but I'm certainly not new to the industry.
     
  5. xsetra

    xsetra Road Train Member

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    Your best financing rate will be from your local bank or credit union.
    I don't need the bells and whistles in my truck so I buy used. BUT will need to have the ability to use a wrench or two.
    My last truck cost me $12000. I drove it for 3 years. Kinda neglected the little red light flashing on dash with the little oil can in it. Ya it was running low oil pressure up this hill and when I stopped to investigate the metal grating noise under the hood. Lucky I stopped on a ramp. Because I could not start it again.
    Not sure what was all wrong with it. Didn't care.
    Sold it for parts and bought another truck for 6g that I have been driving for 3 years.
    I agree with Hurst. Learn more about the business end of things before you jump. O/O is more than just driving.
     
  6. Disgruntledriver

    Disgruntledriver Light Load Member

    Thank you for the post. May I ask, learn how? I've been in the business two years. I've managed and been on the paperwork side of businesses prior to this profession, so I do understand a bit about business. I am very, very aware that being a OO is more than about driving and am not going to just jump strait in, but I am looking to do research first and foremost so that I can make more educated decisions as to which direction I follow and what paths to take.
     
  7. Hurst

    Hurst Registered Member

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    I'm not talking entirely experience.

    I'm talking about understanding, managing and taking control of your own affairs.

    Forgive be for being straight forward,.. but with out some kind of game plan (Goal with a well thought out strategy to achieve it) you will never be successful at anything. That has nothing to do with trucking. This is taking charge of your life and taking advantage of that grey matter between your ears an using it to get ahead.

    I dont own a shiny new truck. I bought an old $20k hoopty with almost 1 million miles on it. I spent the better part of 3 years struggling to come up with $30k,. paid cash for my truck and then borrowed another $20k from my mother inlaw to have a cushion to cover the WTF moments that will and do come up.

    1 year later,..I still work my tail off. I run hard and I work hard,.. mother inlaw paid off,.. I owe no one,.. I have cash in the bank and in the process of moving to my next goal. Hiring my first driver and getting a second truck. All this achieved inside of 3 yrs.

    I dont want to sound like a braggart or like I have an ego. I am actually very humble and thankful for the opportunities that have come my way. I want you to know that with the right work ethic and mental focus to go after your goals, that anything is possible. Like I said,.. I started with NOTHING from the ground up. I struggled, kicking and scratching my way to get to where I am now. Still learning and working hard to keep everything going. There is no relaxing period. Its a never ending fight for survival. This is life,.. you have to go after what you want. Pull your pants up and dont take any crap from anyone.

    Hurst
     
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  8. 062

    062 Road Train Member

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    What do you think your cost per mile will be.
     
  9. Disgruntledriver

    Disgruntledriver Light Load Member

    I have indeed decided that I am sick of taking the crap from people that is not warranted just because they know they can, but I want to find a responsible option instead of "I quit!" What I'm doing right now? This is part of my game plan. I research, I ask questions, I try to see with all the options which one may or may not be for me and then I may or may not act on it. Gathering information is a good step in achieving anything. I'm not going to go out tomorrow and purchase a truck, this is something that will take some time. I also don't always listen to -everything- people say. If I did I probably would not be here right now. Then again, I might be a millionaire? I'm sure you're not the only one who can go fight it out and make it work, whether I'll be another is yet to be decided. That's why I'm asking these questions now. Before a game plan can be set up, you have to know which game is right for you.
     
  10. Disgruntledriver

    Disgruntledriver Light Load Member

    Anyways, in looking more I've seen there are actually some good deals on Volvo's in the 20-30k range. I think that along with something like a 10k Flatbed might be a good option in just getting going and getting started.
     
  11. Skate-Board

    Skate-Board Road Train Member

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    I don't think a bank will give you a loan unless you have a house that you could put up for collateral. Trucking is one of the most riskiest loans a bank can give a new person.

    I started out with a $35k truck and $15k flatbed 8 years ago which I still have today. I paid cash.

    After that I had to pay for

    Plate $1,500
    Insurance with 1/2 up front $4,000
    Heavy highway tax $550
    Local town registration $1,200
    Authority around $600. Had a company do it
    Inspection for truck and trailer

    Then I had to buy 10 chains 20' long and 10 binders
    25 Sliding winches
    25 4" straps
    6' storage box plus mounting labor
    2x2 storage box plus mounting labor
    cheater bar
    edge protectors
    steel tarps
    lumber tarps
    Mattress sheets blankets pillows
    Hard hat vest safety glasses and shoes

    A year later I bought an APU and an Espar bunk heater for around $8,000 (paid for itself pretty quick in fuel savings)

    I was still working at a desk job while I was setting all this up by the way.

    Then I quit my job and was read to hit the road. I took $15,000 cash with me. Shoot, more then enough. HA HA HA, ya right!!

    You pick the load up and deliver then send in your invoice. That takes maybe a week. Then it's 30 days to get paid and them to mail out the check. Now were looking at 5 weeks at best before you get paid. In the meantime your paying for fuel, oil, food, personal bills at home, tolls and everything else.

    So, during that 5 week waiting period just for fuel doing 3,000 miles a week and 6mpg and fuel at $4.00 a gallon your looking at $10,000 on top of everything else I mentioned above.

    I went back into my account for another $10,000. It took about a year and a half before I was in the cycle and still today I have anywhere from $15,000 to $35,000 owed to me.

    You can do it but you need a lot of cash up front.

    My 2 cents.
     
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