A few questions on going Owner Operator

About to pull the trigger (30-60 days) and go owner op. starting my own authority. 3 years experience, decently mechanically inclined. I know it’s not the best time but I’m in a decent situation. No debt, low overhead for family situation (1100 $ for all bills per month) I have two questions.

1. trucks I’m looking at are 2015-2017 freightliner cascadias. 25k cash with 700k on the clock. Is it in my best interest to delete asap?? I have some cash set aside for repairs (5k) but can’t handle anything serious for the first month until my funds start flowing (trying to stay off factoring, at least only factor enough for fuel).

2. Im looking to drop 6k cash on a used dry van trailer to avoid leasing. Is this a bad idea??

thanks guys.

 

Sounds like decent advice. I’ve just heard such bad things about international. Do you know what their warranty is??

I was going freightliner because I can do a lot of work myself. I just don’t have the cash to drop 50k on a truck with warranty left.

 

Power only seems like such a small market. Also, I could be wrong but it seems like it’s hard to get into with a new authority. What is bad about a used trailer??

 

even doing my own repairs?? I could do most anything besides an engine overhaul. I do have a quote at 29k per year with cash for the first down payment. I do not have any direct customers, but my wife will network for me to start finding some asap. We’re based out of Macon, GA so good area for it. I’ve priced load board freight and could still be profitable even at $1.80 a mile, which even load board freight should be better than that most of the time. After ifta, plates, truck, trailer, and insurance I have 5k left. I would factor for fuel but nothing else, but after first month would be able to get off factoring lord willing.

 

I understand what you’re saying, it’s good advice that I’m heeding. So the plan would be to buy the truck, and let my brother in law who is a diesel mechanic delete it and get it road ready if it needs anything. If it did need an engine overhaul I would think a dyno test would show that before I bought it. My understanding is that most of the problems a truck with that mileage will have is emissions related, any other problems that are not major I can do myself.

with all due respect, I think it’s just as bad of idea to start a company with debt on a newer truck. Debt=risk, so at least with a paid off truck and trailer my emergency fund should be 10k after the first month. I know it’s risky, but so is buying a brand new truck. Owning any company is risky.

 

I understand the risk, I am willing to take the risk. I am business minded. I file quarterly’s, know how to use excel, and understand the lanes and market sentiment right now. I asked the two questions in my OP because they are the questions I need advice on. If my business fails then I’m still debt free and can go back to company driving.