We are taking on a small fleet of trucks and I have a bunch of dumb questions

I was just kidding, though a "the price is right" game guessing what loads would pay or what people's books like based on short info would be a fun game. I like guessing.

 

one thing most never consider is the cost of down time,,lost revenue while the equipment is down and in the shop...
If I were hiring an operations mgr I sure would only hire someone with experience in the kind of business or operation,,you have a lot to learn.
Hope there is enough money in your venture to keep your company running while a lot of money falls thru the cracks as you learn

With 5 tractors and trailers especially used I would say you will need to have enough capital to cover unknow problems until a revenue flow comes in on a regular basis,,You need at least $50K in the back for unexpected repairs and enough money to pay all other expenses for 60 to 90 days on hand,,most small trucking ventures especially those where there is not a lot of experience fail due to lack of capital and lack of business knowledge and experience in trucking,,equipment failures, repairs and mistakes can cost many thousands of dollars,
hiring poor drivers and paying low salaries can kill you too,,all it takes is one accident to put you out of business,,

 

Yikes. Might as well start hauling fuel I guess.


1) Maint/repairs costs: $10,000/yr per combination
2) Fuel costs: $.60 - $.80/mile
3) Driver costs: Hmm. I think those fuel guys get paid well....$50,000-$60,000/yr and up from there.
4) Regulatory: No idea for fuel but interstate plates could be $2,000. Then you have quarterly IFTA filings, DOT audits, Log book compliance, Drug testing, UCR, Pension, WSIB, Employment ins, benefits, annual safety inspections on all the trucks and trailers and the office labor to do all that stuff. $10,000 per truck/driver?
5) Insurance: I have NO IDEA what insurance is for fuel but it's probably alot. $20,000/truck/yr
6) Stuff I missed

 

Hard to believe guys are hauling fuel for $25K a year and ins is only $7K but hey.

 

Sounds like you got your hands full. Good luck !

 

Yes 2006 and 2007 hold their value better than the newer ones. Pre 2004 also since there was no EGR whatsoever in those good old days. LOL.

As far as retiring a truck there really is no age. It depends on the driver, if you have a trusted mechanic and you have a driver that nips problems in the bud and you have the ability to take that truck to your trusted mechanic, then you can run forever. We have a 1986, 1998, 2001, 2005, 2008. We stay within a 600 mile radius of the shop usually.

EDIT: 600 mile radius LOL