Taking the plunge. My journey as an O/O.

Discussion in 'Ask An Owner Operator' started by Farmerbob1, Jan 7, 2019.

  1. Scooter Jones

    Scooter Jones Road Train Member

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    I have a friend who owns a 2016 KW T660 with a Cummins. He does heavy haul. He's up to 600k miles now and the repairs and down time are starting to eat him alive.

    He took it into a KW dealership in his local area to address an oil leak on the "FRONT" side of his motor and a coolant leak.

    10 days later he gets it back with a $5,800 bill.

    Next morning he checks everything out and discovers oil is still leaking on the "FRONT" side of his motor. Calls them up and they say, "well, we fixed the leak on the REAR side of your motor."

    My friend tells me he can't afford to take it back in again right now because he has to try and catch up with the money he just put out and the lost 10 days of revenue.

    There is a line...
     
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  3. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    Those "instant" Oil analysis machines like Speedco uses are not something I would choose to use anyway. Get a free kit from someplace like Blackstone labs, have the pm techs grab a sample and then you just send it in.
    And by just getting one every now and then, you are not keeping up with the health of your engine. I would get an OA at every pm so if something is going wrong I can catch it a early as possible.
     
  4. dunchues

    dunchues Medium Load Member

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    Amen to that
     
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  5. Midwest Trucker

    Midwest Trucker Road Train Member

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    Gawd you just flared up prior ptsd for me. Not even kidding. :X
     
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  6. Scooter Jones

    Scooter Jones Road Train Member

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    Where is that line? Well, like buttholes everyone has one.

    In my friend's case, he's paid out at least $20,000 in repairs this year alone and that doesn't even include (if I had to guess) the $20,000 in lost unproductive revenue he's had with that truck this year. He's one of those high miler types.

    He's on 5 year depreciation schedule and still owes about $15,000 on the truck.

    He crossed the line last year, in my opinion.
     
    Last edited: Dec 5, 2020
  7. AKDoug

    AKDoug Medium Load Member

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    You basically posted what I believe. Plan on replacing a truck at 500K. There's a reason the majors are dumping them at that point. If you're kicking 125K miles a year, plan on a 4 year depreciation. You can still finance for 5 or 6 years if you want, because the truck will likely sell for whatever note you have left. It sucks, but this has to be planned for.
     
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  8. snowwy

    snowwy Road Train Member

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    The majors lease their trucks. They don't purchase.

    Same aspect as car leases.

    My last boss does the England plan.
    He decided it was cheaper then maintaining his old fleet. Plus he mostly does California.
     
  9. Scooter Jones

    Scooter Jones Road Train Member

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    I suggested that he should consider selling it for $30,000, pay off the note and leverage the $15,000 plus another $5,000 as a down payment for a new truck. He has stellar credit and could leverage it for 3.75% money right now.

    His concern is that at 64 years old he will be upside down if he had to dump a new truck in 3 years. Which I can understand.

    I'd say he'd be right on the cusp. However, the decreased output for repairs and subsequent loss of revenue during that time should afford him the opportunity to reduce the principle balance in order to mitigate that occurrence.

    When I bought my truck new in December of 2015, my banker suggested that I put a 7 year note on the truck, it was 5.5% money at the time. He said to me: "you can always pay more, but never pay less." I took him up on that logic and will pay the truck off 2 years early at the end of this month.

    I've decided to wait on a new truck purchase for now. But believe me, I know where the line is, and once I start to get to close to the edge on keeping this one rolling efficiently and profitably, it's gone.
     
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  10. Farmerbob1

    Farmerbob1 Road Train Member

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    Exactly. I get an oil sample taken every oil change. This time around, I was on the road a bit longer than normal and decided to have a oil sample and B service done during a 34.

    Apparently, the Freightliner in Redding, CA is Clown World. They do not send out oil samples.

    However, they did have oil sample kits that could be processed by a third party.

    So I had them take a sample, and I would send it in. Not what I wanted, but I could make it work.

    While filling out the documents in the sample kits, I noticed that the Redding, CA Freightliner gave me prepaid sample kits that belonged to another company.

    Several phone calls later, the company whose sample kit was given to me was made aware of the problem, so they could address the Redding Clowns with what happened, if they so desired, and I verified with the testing company that they would accept a single sample from a owner operator without an account.

    Then I spent two hours getting the sample packaged and mailed off through a UPS store.

    You might ask why I didn't simply dump the sample and have another sample taken at my next oil change.

    This oil sample is the last sample before my 1 year engine rebuild warranty expires. The oil was changed. The truck has lost a bit of coolant recently, and I cannot see where. This sample might well be critical.

    And... on the topic of engine issues. The truck threw another L1 engine code indicating a problem with the crankcase breather unit's RPM. Replaced the RPM sensor. No change. No oil leak from the breather, so I am going to roll it into Denver and then get it to a shop for a deeper dive repair. The breather unit itself is not a terribly difficult replacement job from the look of it, so hopefully it can be done fairly quickly. It might also be truck electronics, but I hope not.
     
  11. Farmerbob1

    Farmerbob1 Road Train Member

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    So. I have not discussed plans recently, or financials.

    Time to do that now.

    The only reason I am still in this truck is because I am single and can afford to ride it out. I do not want to damage my credit by dropping the loan, but I do not want to use all of my money and credit all at once to pay off the loan.

    So, I am grinning and bearing it until I can pay off the loan without putting myself in a weak financial position.

    Once that is done, I will have over 2 years as an o/o and @ 6 years as a driver and a credit rating of around 800.

    I will then buy either a Kenworth or Peterbilt on the longest term allowed by my bank, using my current truck as a trade, as part of the down payment.

    I plan on moving over to Schneider Select (or whatever Schneider calls their o/o fleet that runs off the load board.)

    The bottom line suggestion I have for other drivers looking for advice is that if you buy a used mega truck, your next couple years are not going to be good money. The first two years as an o/o with a used truck have only one purpose. Establish yourself as a small business and keep your credit rating high enough to buy a new truck when the old truck is paid off.

    Old iron might also be an option some would consider. Old iron is much less efficient in fuel, but much less difficult to maintain. I will let someone else's thread address that potential choice.

    For newer trucks with ELDs and DPF systems though, once the manufacturer's warranty is done, it is almost certainly NOT going to be a reliable moneymaker. The trucking industry has moved away from durable trucks to disposable ones.

    If you aren't trying to build up self-employment history and/or credit to buy a new truck, the only thing modern trucks with over 500k miles are good for is local boys with friendly shops, or parts trucks.
     
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