Going O/O: Which Truck to Buy?

Should have had it figured out in 10 days if he is going pro!

 

Being an O/O is a dream for alot of drivers for your dreams to come true though alot of thought and preparation will need to go into forming your corporation due diligence is a must its a known fact that most businesses go broke in the first 12 months of operation so its very very important that you have a cash reserve when you start operating so that way if the checks don't come in straight away you will still be able to service your truck and pay any other bills owing. As a guideline i'd calculate at least 6 months of expenditure and make sure you've got the cash to cover for that long of time that way if you get cash rolling in before 6 months you'll be fine.

 

New truck = warranty, better mileage, interest and depreciation write off and higher start up cost
Old truck = less or no emissions gizmos to fool with, significantly lower purchase cost, lower cost to keep operational. Has lower fuel milage and whatever problems the previous owner lied to you about....oops I meant completely filled you in on.

I'd go new if you can afford it, otherwise look very carefully at idle time on DPF equipped trucks.

 

Ok...I got me a question.

Say the idle time is 480hrs on a 2012. If we take an average speed of 55mph, then those idle hours would translate to 480 X 55 = 26,400 imaginary miles spend on low idle, high emmisions, low exhaust temps.

What would that mean to a truck with 350K-480K odometer miles?

Is there an "expected # of regens" executed in the ECM dump?...and if there is, what would be a "normal" versus "geez that's a lota regens"

 

Most truck manufacturer use 25-30 miles per idle hour

 

My only piece of advice other than stay very far away until you have 2 or more years behind the wheel is... whatever your truck is worth, have it saved up in cash in the bank to replace it when something goes drastically wrong and costs $10,000+ to repair.

It's sometimes better to buy a new $20,000 truck than spend half of what it's worth repairing it.

And honestly, if you think you have enough experience to run a trucking business, you don't. You haven't even experienced an entire season yet, let alone a year.

 

Sounds like a question for an engineer. I knew I should of studied more algebra and calculus in high school instead of chasing the skirts, partying and working.

 

1st: What is in it for them is they pass off the cost of operating the truck on to you. They then classify you as an "Independent Contractor", further relieving themselves of the responsibility for covering employment taxes, unemployment, workers compensation, health insurance, paid vacations, and any/every other cost of employing a person. Whether the truck makes a profit or not is no longer their concern, and it doesn't matter to them if you earn a paycheck or not. If your gross does not cover the expenses laid out in your contract, you don't get paid that week. Negative paychecks come out of your next check, too, so if you have a few "bad" weeks, you don't get paid and there isn't a darn thing you can do about it. And if/when it gets to be too much for you to handle, they'll gladly take the truck back to lease to the next sucker...and potentially even ding your credit with a "repossession", depending upon how the contract was written and the manner in which the truck was returned to them.

2nd: You were exactly correct when you said "That's not worth the risk and the capital outlay by any means." Most of the time, company drivers take home more than their lease purchase counterparts.

3rd: A couple years on the job will give you a better idea what is involved in the job. To be honest, many newbies to the industry don't last...and it is better to find out whether the job is a good fit for you BEFORE you own a truck than to be stuck in a job you hate because you own a truck and have to make the payments. It also gives you time to drive a few different trucks to get an idea what you like and what you dislike about each, to get an idea on what sort of truck you might like to buy. It also provides the opportunity to make contacts in the industry....shippers, receivers, repair shops, etc...so that when you do go out on your own, you can hit the ground running. Most important, though, is the simple fact that in ANYTHING you do, there is a certain learning curve. Chances are, you'll have an incident or two as you adjust to driving a semi tractor dragging a 53' trailer behind you. Even if you do keep your nose clean, you're going to scratch a few gears as you figure out the best way for you to make your way through the gears. You're also going to want to pay attention to what maintenance needs to be done, what repairs will be necessary, and get an idea on just what all of that will cost. Best advice in that regards, since you know you want to buy a truck, is to run whatever company trucks you are assigned to as though they are your own. Keep track of fuel mileage, maintenance, repairs, and what EVERYTHING costs along the way...so that you have a ballpark figure as to what you'll need to budget for those expenses. Consider those first couple years as "research" for your new business...all on someone else's dime.

4th: No, the "fleece" deal that driver was talking about is the lease these companies like to push. You probably will never own that truck, and if you do, it is because you paid 3x what the truck would have cost you had you just got a bank loan and bought the #### thing outright and because of that, it'll be worn out long before you make that final payment....especially if you have to "train" in order to make ends meet running as a team...which exacerbates the whole "worn out truck" thing even more considering that string of team drivers are all rookie drivers who are learning how to shift and are not going to be easy on that truck at all.

Finally: That's a good plan. Stay a company driver while you do your research and get your ducks in a row. Work for a few different companies if possible to find a good fit for you...not all companies are good, and even the ones one person might consider great might be a horrible fit for another...and the ones that are considered bad by some might be an awesome fit for another. Everybody has their own priorities, wants, and needs. Personally, I was looking for a company that treated me well as a company driver that also had owner operators and treated them well...makes the transition easier when the only thing that really changed was who's truck I was driving. Some don't want to put their truck onto any company that has company trucks, as they fear the company will place the profitable loads on their own trucks and pass the junk on to the O/O's. Like I said, everybody has their own preferences...in time, you'll figure out what works best for you.

 

You'll practically be working for peanuts taking all the responsibility. It's your life and if you want to throw your money you made elsewhere down the drain being in a business u just walked into not knowing little to nothing about no one can stop you.