Should I buy this 387 Pete or wait?

I would never buy a truck and lease it to a company that has it's own trucks. I would never buy a truck and drive it for a fixed rate per mile. I would only lease to a company that pays percentage. When you book a load that pays 90 cents a mile, or whatever, you never really know what the customer is really paying to have it hauled. Your company might be making $2 per mile for your work without you knowing it. I pull a flatbed for Landstar. I know what the load is paying ahead of time, and what I am getting. Those big companies will have the O/O's deadheading, and doing the dirty work before they put their company trucks on the line. Take what a company driver makes per mile, and subtract that from your per mile rate. If what's left only covers your expenses, then your better off being a company driver. I wouldn't get in a big hurry buying a truck right now. Just my 2 cents...take it or leave it.

 

Zsn1gman

I want to give you reference to the calculator I posted on this site which will help you. it includes videos that will show you how to use it. The post is O/O Rate = E + I / L / M This "Will" Really Help.

Now: with your truck payment at 1840 here are the assumtions I made: I saved a copy on the Internet calculator. You'll be able to change any inputs and work the numbers around as you wish

6 mpg
2.92 gallon fuel price
avg. ld per month 550mi
avg. DH .20 or approx 137 mi
each load will take 1.35 or one day and about a third part of the next
19.26 loads for the whole month
approx total monthly miles 13,240 ld/dh
On the road 26 days of the month

You'll notice I set all the expense as avg. for a lease situation I'll mention a few here to somewhat clarify

I set you Bobtail and liability at 500 a month, may be a tad high but still
you'll notice I have you idling 10.5 hours a day still again you can change these numbers

I also took all of your annual payments and divided them down into monthly payments

and I added 2 truck washes for the month

In the final analysis (A Trucking Ownership Analysis)(I just now made that up, you like it? lol) running at .90 and .26 fsc "Nets" you about 2404.00 for the month

your base rate would have to be 1.06 if your fsc is .26 for a total of like 1.32 on all miles as a lease operator to earn 4522.00. I always say if you can earn 3000.00 after taxes on a full month company drv. you should expect to earn 4500mo after taxes taking the extra expense and responsibility of leasing on.

here are the two examples from the calculator
.90 at .26 fsc http://spreadsheets.google.com/ccc?key=0AloyOIMFxJn-dEg1S1ZTeE5GN0hOVEw1NVBscHNxU0E&hl=en

1.06 at .26 fsc http://spreadsheets.google.com/ccc?key=0AloyOIMFxJn-dGd6aWotNWtjek8tYTNkNXlEY1lpVWc&hl=en

When you get to the calculator if you click on "Google docs" you will find the "saved" calculators, yours is named Truck payment 1840 Hope this helps.......Jo Bernard

 

KLLM pays .88cpm loaded and empty plus fsc presently # 31cpm loaded, that equates to 1.19/loaded mile. With a reefer my dh is very little. I'd estimate below 10%. We do a fair amount of drop and hook. That allows me to get more miles in for the week. Haz-mat loads also adds to the bottom line along with stop pay. I/we dont do a lot of sitting and waiting for loads. Once you establish yourslf as a runner and stay out of the truck stop you can get a lot of long haul runs.

For ex. I got a run from darien, Wi to Antioch, Ca. 2433 loaded miles w/ 80 miles dh, ran that load in 3.5 days (haz mat Georgia Pacific). Then got another load 60 miles dh to Elk Grove, Ca. going to Moblie Alabama. A little over 2300 loaded miles (5 days delivery time did it in four) Picked up first load one day before payperiod ended (So some carry over for previous week). On both load, ran 700 plus miles per day.
Load #1
2433 + 80 = 2513miles #.88cpm = 2211.44
FSC 754.23
2211.44 + 754.23 = 2965.67 pay for load.
spent 1200.00 for fuel approx
2965.67 - 1200.00 = 1765.67

Load #2
60miles dh + 2300 loaded miles = 2360 # .88cpm = 2076.80
FSC $713.00
2076.80 + 713.00 = $2789.00
spent approx the same for fuel 1200.00
2076.80 + 713.00 = 2789.80 - 1200.00 for fuel = 1589.80

add the two loads for the week and you get $3355.47

- $177.00/wk base plate and tags
- fuel tax approx .01cpm

Granted everyweek is not this great but at least in my situation most are. Stay out of the truck stops, and communicate with your travel agent and shippers and receivers. ie pick up early when possible and deliver early when possible. Put in a good days driving. Ask for preplan, when you get close to your drop point. Communication is the key. And an occasional fruit basket or something like that to your travel agent dosen't hurt either. In this business if your a runner and know how to work your log book, and don't let your log book work you, things can be good.

 

Looks like your doing good with them. I'm assuming by what you posted that they pay everything else except fuel and base plate?

 

your assumtion is correct. my weekly expence is 177.00. That covers ins and base plate, and Occ health, qual comm. The one thing I dont care for is they charge me 15.00/wk for trailer ins ( use to be free)

 

Z lets take from Babiboi357 example:

he said he ran over 700mi a day, so lets say 715
with 2 restarts and at least 6 relaods and 3-4 days off ea. month: you'll end up running 19 days times 715= 13,585 mi "approx"

I've use the calculator I suggested to you and already know your total operating expense for this example would be about 12,255 (you don't have to believe me but you do the math)

.88 X 13,585= 11,954
.31 X 13,585= 4,211
grand total mo=16,165

monthly total 16,165 - 12,255 = 3910 after taxes
now 3910 / 13,585 = .29 cpm just for the sake of argument 3910 add taxes back in 688 =4598 / 13585 = .34cpm

that's running full out, all you got, nothin else, for what? .29cpm
If you're going to do the math do all the math, this is exactly how guys get themselves into a bad deal----looking at half the picture

Not trying to dowse your dream, I want you to do whatever God opens the door for you to do, but be wise, and find some place that's going to pay you according to the extra responsibility your taking on.......and now you know.......what I know.......Jo Bernard

 

Interesting, KLM must have changed a lot since 1983 when I was leased to them. I recall averaging 75 cents a mile and about 140,000 miles for the year I was there. Now 28 years later they are all the way up to 88 cents per mile......

 

exactly my point!