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Advice on setting up a trucking business in CA

Discussion in 'Refrigerated Trucking Forum' started by jokepie, Apr 29, 2014.

Page 1 of 3
  1. Apr 29, 2014 #1
    jokepie

    jokepie Bobtail Member

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    Apr 29, 2014
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    Hi All,

    I am new to this forum and wanted to get advice from the veterans and professionals. I and two other are planning to set-up a trucking business in California.
    One of us is a trucker who has been driving for past 2 years and wants to help us manage the business, while others will invest and help with marketing and getting the loads. I am sure there have been previous posts such as this so may be admins can give us links to them.
    It will be of great help if we can get a detailed expense/revenue worksheet to start with.
    We plan to buy used truck/trailers (3) to get started. please help us with the following :
    -age, mileage and models of used trucks that will fit the current regulations in CA and provide minimum risk of unexpected maintenance costs (manufacturer/service warranty etc)
    - Most people suggest to buy the trucks instead of leasing ?
    - How much down payment will be needed for buying these used truck and how much we should have in the business account to cover the start-up expenses.
    - What is the usual delay between delivery and receiving the payment form the shipper if we dispatch/get the load ourselves.
    - how to set-up our own dispatching unit. Is it advisable taking up other O/O for the dispatcher to handle for extra cash-flow
    - How to reduce Insurance costs
    - Is it better to have teams of drivers that the single operator at a time ?

    Thank you all in advance,

    Guru
     
    jokepie, Apr 29, 2014
    jokepie, Apr 29, 2014
    #1
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  3. Apr 29, 2014 #2
    gokiddogo

    gokiddogo Road Train Member

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    Put it all on double zero and watch the shiny black and red wheel spin ...
     
    gokiddogo, Apr 29, 2014
    gokiddogo, Apr 29, 2014
    #2
    KF7WTV Thanks this.
  4. Apr 29, 2014 #3
    jokepie

    jokepie Bobtail Member

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    Apr 29, 2014
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    That Idea did cross my mind, but my partners won't listen. Hey, if it was up-to me I would just party hard in Hampton for an unforgettable night and then talk about that for the rest of my life.
    Since its not up-to me, I need help contribute to the group better than just cash. So could you please help us - I think you have the experience master.
    Thanks
     
    jokepie, Apr 29, 2014
    jokepie, Apr 29, 2014
    #3
  5. Apr 29, 2014 #4
    KF7WTV

    KF7WTV Medium Load Member

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    RENO, NV
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    Not an O/O or biz owner.... but I've talked with many. One thing I found interesting was that although some consider nothing but outright power/trailer ownership, that does come with outright ownership of ALL maintenance and repair costs. On the other hand, some lease agreements come with warranties and/or repair contracts. Knowing how strict CA is, and it will probably get worse, it may be financially beneficial to lease newer units with warranties. At least until your company gets established, aka starts making a profit.

    Just my $.015 :biggrin_25519:
     
    KF7WTV, Apr 29, 2014
    KF7WTV, Apr 29, 2014
    #4
    jokepie Thanks this.
  7. Apr 29, 2014 #5
    KeithT1967

    KeithT1967 Road Train Member

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    Springfield, Ohio
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    Honestly? Considering the way california treats businesses in general and trucking in particular, I think you're crazy to even consider setting up in ca. Set up in az and operate in ca maybe. Im waiting for carb to demand no idle reefers with egr, dpf, and def.
     
    KeithT1967, Apr 29, 2014
    KeithT1967, Apr 29, 2014
    #5
    jokepie, Cman301 and KF7WTV Thank this.
  8. Apr 29, 2014 #6
    ipogsd

    ipogsd Heavy Load Member

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    Best advise I can give you is move your business out of California!!!
     
    ipogsd, Apr 29, 2014
    ipogsd, Apr 29, 2014
    #6
    Red Hot Mess, KF7WTV and jokepie Thank this.
  9. Apr 29, 2014 #7
    Dryver

    Dryver Road Train Member

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    Best answer today!!

    California hates the trucking industry, in the latest CARB meeting we got accused of killing unborn babies with our exhaust! Not kidding, they even had a picture of an aborted baby on the screen. Why would anyone support this state? My vote is to let all their precious produce rot in the fields.
     
    Dryver, Apr 29, 2014
    Dryver, Apr 29, 2014
    #7
    KeithT1967, gokiddogo and jokepie Thank this.
  10. Apr 29, 2014 #8
    jokepie

    jokepie Bobtail Member

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    Apr 29, 2014
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    So, CA has stricter compliance etc. Does that translate into a business edge if we lease newer, more eco-friendly truck models ?
     
    jokepie, Apr 29, 2014
    jokepie, Apr 29, 2014
    #8
  11. Apr 29, 2014 #9
    gokiddogo

    gokiddogo Road Train Member

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    Running California = buying or leasing, however you want to do it, you are paying money for a truck that has to have at least a dpf on it, and these trucks have a high rate of failure, and high maintenance costs to "repair" the emissions systems that may or may not work! If you buy 3 trucks, plan to have at least 1 always in the shop.
     
    gokiddogo, Apr 29, 2014
    gokiddogo, Apr 29, 2014
    #9
    jokepie Thanks this.
  12. Apr 29, 2014 #10
    jokepie

    jokepie Bobtail Member

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    Apr 29, 2014
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    Does this mean that - if we are based out of AZ or other more relaxed state we can own a non DPF state and still operate in CA with no issues ?
     
    jokepie, Apr 29, 2014
    jokepie, Apr 29, 2014
    #10
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