Invest in trucking???

Can't imagine why you would want to invest in trucking without experience... you'll probably lose your shirt. There are all kind of ways to steal profits and all kind of characters out there just waiting for the opportunity.

 

It's fairly easy to buy a truck, it's far more difficult to be successful. I think it would be a bad investment personally. You'd be much better off holding notes on trucks and trailers for experienced owner operators. 18-30% interest rates are fairly common for experienced guys with mediocre credit.
ETA,
I'm looking at adding a truck and driver this year, my first since I liquidated my equipment during the financial crash. I'm hoping to get a decent driver for .50 cents per mile, driving a 2-3 year old truck, if not new. I've been an o/o since 2001. If you think you're going to buy a 10 year old, $20,000 truck and get a decent driver to drive it and take care of it for .35 a mile, you haven't done enough research. I keep crunching numbers and my break even with what I'm paying for fuel today is $1.40 per odometer mile, as the truck doesn't care that you got paid on 1100 miles and it took 1200 miles to get there. That 100 extra miles of wear and tear and fuel needs to be paid for. That's the first way you can get screwed. You probably don't know the difference between HHG miles, shortest miles, practical miles, etc. If you're getting paid by the mile, and they are paying shortest or HHG, you'll be doing roughly 8-10% for free. So you calculate your break even at $1.40, but in reality, you're break even ends up being $1.50 just because of the way they calculate mileage. That is merely one way you can get screwed. There are so many others, a book could be written on it. For example, right now I'm paying roughly $1.00 less than pump price for diesel right now. Some carriers will keep that money and charge you pump price on your settlement, maybe even charging you a transaction fee. This is a rare time for discounts, but typically it is .30-.50 off pump price. The carrier that charges you pump price is making a couple hundred bucks a week off YOU buying fuel. Good luck with your quest, but I doubt it will be successful.

 

When it comes down to hiring drivers, it comes down to what are you planning to offer them that others will not. This typically takes money and/or benefits. IMO, a 2008-10 truck would be a terrible purchase for a company driver due to issues inherent in that EPA era. Like I said float the notes or buy and lease out trailers. There is good cash flow there with minimal risk or day to day annoyances. Getting woken up at 3 am to authorize a minor repair, or worse a major one gets old.
What you're referring to is leasing your truck to a motor carrier. I am leased to a motor carrier, though I find my own loads. Others will find loads for you, but as always, you pay for that, and not just in ways that are black and white.
Good luck, but I think it's a bad investment that will net you little cash flow at the end of the year.

 

I have 8 years of experience in this arena. We have owner's that do nothing more than own the equipment, we find the drivers, take care of the maintence etc, and send them a check every week. Trucking is and always will be a good investment. Just don't go over your head. A truck with 550K or less milles that has been well maintained can be bought for 45K all day long. A decent dry van can be bought for 6K or less all day long. Average 4600 per week revevenue, 1600 a week in fuel, 400 a week for manitance reserves 1200 a week for a driver will leave you with about 1400 a week.

 

and also, a truck that has 550K or less miles on will serve you well for about 2 years, before you start seeing any real repairs. By than just sell them and newer trucks. If you try to go and buy a truck with 10 million miles on it and think your going to make a pile of cash because its only a 5500.00 truck, your setting your self up for failure. Now lots not lets not get it twisted, there is lots of guys out here making a good living with a 5500 trucks but they have gotten lucky!!

 

SAFER says you're only operating 1 truck.

 

agree totally here.