O/O Facts to live by

I think you have a good point if someone is going to go solo without leasing on. You can buy a decent, older truck for less money. However, if you plan on leasing to someone, be aware that most companies will not lease a tractor that is older than 5 years.

You may be able to talk them into it by having their mechanics inspect it, but it's rare.

 

The average requirement to lease equipment with companies varies from 7 to 10 yrs of age.

Don't just look a initial cost of equipment, also factor in resale a few years down the road.

I agree with MAtthews on going specialty,I personally done extremely well with Super End Dumps and Hopper bottom w/78" high side walls.
Just some advice on these 2, For Super End Dumps: try to get a Smooth side like a Vantage in 39' to 42' length, that way you can remain versatile, and believe it or not that smooth side pays for itself in fuel saving over a exterior post or Macsimizer.

Hoppers: I like the 78" high sides for the fact that you have enough cubes to haul the usually higher priced feed ingredients, as compared to just grain.

Plus, with either one, not a whole lot of physical labor involved, and the shippers and consignees are usually out in the rural areas.

 

Well, in general, I have to disagree on one thing here. I do not believe in factoring in the resale value of the truck in my purchasing decision. Instead, I plan on getting the right machine for the work, and making it return it's investment in the time I use it. If I did things right, at the end of whatever period of ownership I have, I could walk away from the truck and never look back and not have any regrets. If the truck sells and brings in money, fine and dandy, but I am not dependent on the resale value of the truck and the vagaries of the used truck market to make my investment worthwhile.

I buy the truck specced to my needs and don't concern myself with the needs of an unknown person somewhere down the road. I spec the truck to be easy for me to maintain and repair, not putting in abigger engine than I need and more gears because that will appeal to someone else later on. When I am done, someone will buy the truck and will pay a fair and equitable price for it, or I won't be selling it. But I just don't plan on that as part of my financial planning. I buy the truck, and run it based on good financial sense, but selling it is not part of the plan.

Others may plan things differently, but that's not the way I beleive in doing things. Used truck dealers make their living selling trucks, but I make mine by running them.

 

You missed what I was trying to say.
A $9000 Freightliner today will have almost no value 3 years down the road.
And besides that, unless it is heavy haul, most trucks are speced somewhat the same, with few variances.
And you start out with an older less expensive truck, and then upgrade to a newer model, with less headaches as business and profits grow, so what do you do???? Set that tired ole bucket bolts in the back yard and count it as money lost??? Or sale it for a fair market value and help someone else get a start??????

 

I agree with selling it when you are done with it. I just have no interest in considering the future resale value that it will have as a factor when I am buying it. I believe in speccing the truck for my work, and whatever it brings when I sell it is money to the good, but I don;t count on that money and don;t make it a factor in my initial purchase. I won;t pay extra now for some chrome on the truck on the hope tat the next buyer of the truck will be dazzled by the chrome.

 

I don't have any problem leasing my 19 year old truck. And there is nothing second rate about my carrier they have been in business for almost 100 years and are one of the largest flatbed and heavy haul companies in the US. In fact they have quite a few guys with 30+ year old trucks leased on. Heck there is even a guy with some restored Diamond Reos and I know they are at least 30 years old.

As far as resale goes, who cares, I am in business to haul machinery, I am not a used truck dealer. When I am done with them, I have gotten my money out of them, so they can sit in the back yard for parts, someone can use them to jockey trailers, or some sea container hauler can use them. If I have to think about getting a couple of thousand back a couple years from now my profit margin is too slim.

I would never recommend a truck that cost more than $15,000 to a new O/O who is just starting out. Forget all that payment stuff. I paid for my truck in cash. It paid for itself in full and showed a small profit at the end of the 3rd week.

 

Joe you go at a different approach than most truckers. Doing your own mechanic work is what is keeping you alive. Most go in; going under. You have figured out a way to turn a profit out of the gate. My hat is off to you. Not used to seeing that in a driver. I was never an O/O. I was always a company man, but know a lot of O/O's. You sound like you have figured this out well in advance.

 

Yeah but if you take a good mechanic with you when you are looking to buy a used truck, and I mean a good level headed business minded mechanic, not some yahoo who is bedazzeled by chrome, lights, and big motors, you can end up in pretty good shape. I saw some decent 2000 CH Mack day cabs out there in the 400,000 mile range and the asking price was 18G. They would make great local trucks for a flatbed or dump operation. They even had PTOs on them. I see FLD freightliners out there all the time for under 10G that don't look to shabby. Something I am going to say, and I know I am going to get arguements, is Sleepers have less resale value than day cabs. So if you are willing to deal with a sleeper cab you can buy a truck pretty cheaply. Problem is most older sleeper trucks (not all) have been rode hard and put away wet.