Old Truck vs New Truck

New trucks can have issues, especially emissions related issues that can cause the truck to breakdown. If you lease, you may want to lease from a nationwide leasing company (Ryder, Penske, etc), so you could possibly get a replacement truck quickly if necessary. You also can have access to their shops nationwide. I was with a company that leased all their trucks from Ryder. Seemed to work for them. But I am gonna keep my 2003 non emissions truck for a little while longer. It's very dependable.

 

Where are you getting a new truck for $1600, 1998? A new truck payment with 10-20% down will easily be in the 2600-3000 range. From what I've seen, typically lease companies aren't interested in the one to three truck operators. Penske was the most accommodating when I needed to short term rent a truck for a few days, but required a large deposit to do so. Ryder wasn't interested in talking to me.

 

Yep, lease outfits generally don't reduce payments any more then an outright purchase/finance/20% down when it's all said and done, so you may as well buy if you have the credit and the means. Then, typical new truck with FET, $148k+, less 20% down, 5-6 years .... a lot of money and you better hope you don't encounter any life/family experiences that might keep you idle for a long period of time.

It's all about the rate assured and the confidence the freight/work will be there consistently, this year and next year. A new truck will leave you with some value after 5-6 years. either a good trade-in, or a reliable truck that should give you another 4 years of increased profits if she holds up well, but don't forget to budget for major break-down costs and costly tows, because at some point, they will find you.

 

I see little value in that myself. I just test drove a '10 780. Too expensive and no OEM warranty. I'd rather have brand new or older than 07 with an EGR delete or no EGR. Reliability is what it's all about to me, OTR breakdowns cost big $$$. My buddy put $20k into his 08 780 D13 head and towing. I've bought a $3k clutch on the road.

 

New vs old truck? How old? 3, 5 years old? I bought mine in 2010 '05 Columbia, since then never had problems, only issue I had was starter, luckily I was parked at the shippers dock, not big deal, my batteries were stolen too, never had any engine, transmission problems, my ac compressor ran out last week, many factors to consider ,

 

It does not matter what you gross. What counts is the profit. If you gross 30k a month but you spend 35 it is not gonna work for you!

 

3 parts to the equation ...
-revenue per mile (day, trip, ton, whatever) + any FSC that may be applicable
-fixed costs (min salary, bank note(s), insurance, etc)
-is the work consistent [enough]

these components need to be known before you can really be sure of any capital investment decisions.

Too many carriers build a lease and compensation schedule assuming the contractor will be content to operate a POS tractor with little/no note payment, for the duration. This can only lead to eventual poor house as maintenance and repair costs begin to catch up ... and they come with a vengeance. And you can never accumulate enough profit (depreceation) to work your way up in terms of tractor specs/age.

$5-6k week gross means nothing to us not knowing what is required to earn this and the type of hauling. Might be a great deal, might really suck, depends on too many variables and factors.