Average rates for O/O

Trucking Industry Trends: Nov 22-28, 2021
But the rates are not equal the money. You can goo bankrupt with a lot of wrong decisions. Repairs, accident, claims and a lot more.

 

Don't frigging do it! There's hundreds of threads here on guys doing similar and they almost all end the same. No longer friends and shorter on money

 

I wouldn’t figure running 3500 miles a week as an O/O unless it’s true long haul

 

Theres much more to this business than running 3500 miles at 2.50 a mile. That is a plan destined to fail. If you are essentially loaning money to this guy. Then you need a contract between the 2 of you to protect you from getting f'd which is a 99% possibility of happening. I would also reccomend the truck is used as collateral for the loan so when ur buddy fails you atleast you have a truck you can sell off after its all said and done and hope you can break even. Which isnt likely to happen. Also you will have to find a new friend because once his bad business plan goes south , he will skip town and never answer another phone call from you.

 

3500 miles a week, every week, is very demanding on a human body and mind.
Doing it with an average of $2.5 all the time cannot be guaranteed either. Rates on longer distances may drop below 2 dol from one week to another.

 

Don't do it!
Lending a friend $5 because you went out for a beer and he is a bit short, sure do that, he is your friend.
Lending him the money for a truck, well that's the end of the friendship, and your going to be kissing your money bye bye.
Do both of you a favor, and don't do it.

 

Something is fishy about your friends story, he has jacked up and ####ed his personal credit because of a divorce and can’t earn his way out of his problems driving on his own working for someone else. So, he comes to you a friend who has no experience lending or making investments in the trucking industry.

There is a reason that banks, lenders and people who are in the business of making investments in this transportation industry only make bets on people who can solve their own problems and are responsible for their own good credit. They want their investments back with lots of money returned on top of that. Because this is a risky business that has lots of variables in it such as the cost of diesel, the amount of income earned on freight lanes changing weekly, very high insurance rates, factoring rates on getting paid on loads faster, not keeping the equipment up and running, and something that seams as simple as tires can make or break you in this business.

Never loan money to a friend in less they put up collateral that you will hold on to and is worth 2x what you give them in a quick liquidation sale.

It is good that he has a business plan but before retiring I was in the business of backing startups and growing business and I put about three dozen good business plans in the shredder a week.

Pamela1990 gave you some good advice: Don’t Do It. And she knows 10 times more then I do about the Transportation business then I do.

 

Did he include the losses when the truck breaks down cause it will happened a lot, especially with the newer emission engines. Also, are you aware about parts shortages, truck have stayed in shops for weeks and months due to the shortages, and you still have to pay for insurance truck payment etc. Use the search button on top, lots of horror stories and good ones as well. I personally would never do it(lend) money to a friend nor family member for there business adventure. I’ve know to many that have lost there friendships over this even know a few friends that have lost family ties cause money was loan to a family member. Goodluck if you do.