Is there any fully independent owner operators on here?

Pretend you own your company for the next 2yrs.....keep track of all expensss then figure that into your cpm.

First year of a used truck you’ll probably spend $15k on truck maintenance, repair, and setup.

 

In 2 years time you could save around $100,000 and that would be enough to go out and purchase a rig & insurance outright... Thats what I would do if I was you.

 

I originally budgeted $1,000 per month for maintenance and repairs. Includes tires, oil changes, everything needed to keep the truck running.
Over the years I find it averages to $850 a month. You can go a long time and not need much more than oil changes, but then you need a set of drive tires, next week the windshield gets hit, two days after you replace it it gets hit again, two months later another windshield. Then you go 30 months and it doesn’t get hit.
But you bank the money for those times when you’ll need it.

 

For a used truck figure 20 to 25 cents per mile to be safe. Maybe 25 cents the first year then lower to 20 cents 2nd year and finally bottom at 15 cents the remaining. This way you can take on an overhaul if needed but if you get lucky then you’ll have plenty saved up going into the next years.

If you get up to say 35k in the account then just start using this excess to pay off the truck early.

 

Set a mileage goal for your first year of running

Add in oil changes and other routine maintenance.

Add in tire replacement costs, and other incidentals.

Add in brake work per axle. Always assume you will always replace brakes per axle, not per wheel.

AND then added in catastrophic costs - engine rebuild and clutch AND emission repair.

This will give you an idea of what you need to maintain on a used truck.

do not diminish the fund level as you go, keep a specific amount in the fund and use it as you need to. Let it build up at the specific rate always.

 

I spend around $5k/ year on maintenance. But I drive a 2000 model year Freightliner with a C12 engine. Almost 1.6 million miles and no major problems.

 

This is head on.

I just want to add one more thought.
The past did show, that maintaining the emissions system is a hit or miss situation. There were owners, who put $15000-$20000 of combined bills in the exhaust, just to hear one day, "you need the whole system". Another $15000.
Newer emission systems seem like they got better. This was discussed on an other thread here on TTR.

What I try to say is, don't get too comfortable when you have $30000 built up in your no touch account. It's darn better than nothing but could be gone out the exhaust pipe in no time AND the engine is still in need of some repairs.

Most of the time you'll lose, sometimes the others win.

Good luck.

 

I’ve had 3 pre emission trucks and what I do is simple. I do .25c a mile.

One year for example I spent about $5k and another year I spent $19k. In the end it doesn’t matter because I always do .25c a mile. What isn’t spent, is saved.

What people get wrong is they set aside just enough for repairs and maintenance or they stop at a set dollar amount like $10k, $20k or whatever. Then only add enough money in to stay at that amount.

The problem is what happens when it’s time to buy a trailer or you need a new truck? Trucks don’t last forever. If all you kept in a maintenance account was $20k and you decide to get a newer truck, you’re going to have to finance. But if you kept taking out .25c a mile, your next truck could be purchased with cash.

Look at your maintenance account as a forever maintenance. Not just for whatever that truck needs at the time, but as a replacement tuck when the time comes.

 

Pretty much right on the money there, with a pre emissions truck that is.

We put aside .30cpm for maintenance - .10 cpm for ‘equipment upgrades ‘