I'm thinking of buying my own truck, running it for a company. Currently a company driver, .27 c/ml. Can't pay the bills. Suppose I could buy a truck in the $20-40K range? Are there any companies out there that will run my truck if it is older than 5 years? Thanks.
Thinking about owning own truck--questions
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I would say if you buy a truck right now your NUTS! don't get me wrong its a great feeling owning your own truck but now isn't the time to jump in when the industry is so unstable. I would look for a new job that pays better, there are alot of driving jobs out there. Who's to say the company you lease on with doesn't go belly up or lay off a month or 2 after you sign on, now not only can you not pay your own bills you can't pay your business's bills either.
Not going to say Nay or Yeh for you. But, I will point out the obvious.
With a Truck getting a consistant 6 mpg. And fuel at $3.60 a gallon. Paying yourself .30 a mile.
You MUST get .90 a mile to cover "simple" operating cost.
This does not include your payment, permits & tags, nor does it include your "normal" maintanance. Then, God forbid you have a major breakdown.
Why not just spread your legs and let me kick ya in the balls right now and save the waiting.
Fuel is going too $5 gallon. At 6mpg that is $83cents per mile. The company I just took a company job with while I wait for freight rates to come back pays there o/o $.87 cpm and $.37 cpm fsc. Don't look too good does it? factor in maintenance and insurance and you are in the hole. Read the posts here and see all the guys loosing there trucks and everything they own. no, you arn't smarter than them.
I have pictures of a repo lot that has hundreds of trailers less than a year old and probably 100 trucks, all repo'd
If you want a good job with plenty of security look into the repo game
I was paying $4 on the way home. Actually got some at 3.81 in Oklahoma.
On the down side. I "almost" filled my car at $3.04 a gallon...But my lazy butt decided to wait til I got home...so I could pay $3.29 a gallon instead....just 40 miles down the road.
I have to say spend some serious time doing research and finding the right loads out there. I think right now is a GREAT time to get in if you have the money to support you. If you have enough cash to buy a truck go for it, borrowing money is probally not the best time.
the way I see it is, until there is a set of railroad tracks in front of eveyr shipper/reciver trucks will still be around. It is going to get better, no the fuel price is not going to go down but the freight cost is going to go up, it has to! With all the o/o's with the big truck/trailer payments dropping like flies right now, there is going to be a demand for freight. I honestly hope the o/o's who have been crying and debating selling their truck would just hurry up and do it!
As for leasing to a company, I have done that before and I would NEVER EVER sign a lease with someone who controls my freight. besides what are they going to pay you a mile?
my operating cost is over a $1 a mile and i see ads for be a o/o and get .95 a mile. I have no idea how anyone leased to a carrier like that is making any sort of money.
I don't discourage anybody from starting your own company (many people in here do)
I spent over a year in planning and research in starting my own trucking company.
Look at some truck shows this year and try to attend them and take some seminars and learn some good information.
BTW right now with the fuel prices the way they are, and since you are having trouble paying the bills you probally shouldn't be a o/o in my opinion. It takes a serious amount of money to start up and pay the bills until money comes in not counting a reserve account for repairs. Money is defintely tight for o/o's right now and only the smart ones will survive! I own my truck outright so I do have a upperhand!
A very good post by iowabmw. I agree now is a GREAT time, if you can buy outright.
My operating cost are below $1 per mile but I sacrifice a lot of truck to keep profits up. I'm not in this for flash or to prove anything to anyone. I am a family man with wife and 4 kids, I am home more than the average trucker. This is a business to me and nothing else. Having some mechanical skills helps and having worked in trip planning and dispatch played a roll in the type of trucking business I started for myself.
1993 model Cummins L-10 engine and Rockwell 4.34 gears yields 10 mpg if you take it easy. Before any of you scream "no way" please HOLD OFF. Unless you have had the engine gear combination and run the southeast only, with light loads you can't know. I know because I do it. My IFTA papers show consistent 9.5 average. (I have had skeptics question this fact and I rarely mention my mpg because of it) That gear engine combo will keep you in the slow lane though.
I only shoot for light loads and pay my heavy highway tax on 70,000 pounds only for my little daycab tractor. This was my plan to make profit before things got as bad as they are. As fuel surcharges go up based on 5 to 6 mpg, getting 10 mpg makes the situation better for me.
I am currently having no problems finding very good paying freight. Truck demand is up a little more every week and I believe the demand will be very strong as the summer goes on. Fuel is VERY high as we all know, but I always remind shippers and brokers of this fact and fuss for more money or I say thanks but I will pass this time then they "usually" go up some to cover fuel.
Like iowabmw said, no truck payments makes ALL the difference and having your own authority, NOT leasing. I know some people who are leased on to a company I occasionally run a load for and I don't see how those guys make a living at all. Brokered out to me the loads are at $2 per mile and the leased guys are somewhere around $1.40 per mile with surcharge?! Not to mention their bigger engines! YUK!
So, its all on having money to start dept free if possible and buying a reliable fuel efficient truck that is inexpensive to service. Be smart shopping for best insurance rates also. In my opinion, don't lease.
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