Minimum Cash-in-Bank Before Starting

It is easy to lose track of repair costs, especially when someone else is writing the checks. Some drivers want to get into a truck so much that they over look a lot of problems. When someone offers to put a driver into a truck with no credit check and no money down, it can be tempting. It is a shame what happened to your friend. The first truck I bought was a Ford.

 

I was parked for 11 months between '09 and '10 after a major wreck.

It took almost $6,000.00 to get back OTR with my insurance deposit, license and permits, the 2290 was due (although prorated because I didn't run 5K the previous reporting period)... plus I had to have $$$ for fuel and road expenses until I got paid (add another $3,000.00).

Since July I have spent over $22,000.00 on repairs... fresh engine, TWO front differentials, tires, brakes, rear suspension rebuild, fresh hub seals, front suspension rebuild and a few other misc. items. These were things I was going to due in '09 after the veggie harvest was done and I had cash in hand (the wreck killed that idea)... instead I had to pay for this stuff with cash from my weekly settlements as I did the repairs... it's tougher that way but I keep my truck mechanically up to snuff as much as possible.

If you don't have $20K per unit you won't have enough money... fuel can be $2500.00 per week alone right now. I carry $4,000.00 cash with me when I'm on the road... I don't due credit cards.

Save your money and buy a truck with CASH... there are some darn good buys out there for less than $15K that still can make you money...

 

Most people are not willing to save and wait until they can pay cash for their truck. They want it NOW! They also won't wait until they have a good reserve because they think that they can beat the odds and nothing will happen until they run long enough to put some money aside for repairs after they buy the truck.

 

yep...

My old carrier has several older FLDs for sale right now. Very well maintained trucks... I would imagine a guy could buy one for $5K... a good way to start.

 

Some people think that they must spend $50,000+ to by a truck to get started.

 

Back in'73 I had a starter go bad in my '65 KW... the bill was an astounding $900.00! My boss asked if I told the shop he only paid $500.00 for the whole truck... true story! I was running coast to coast in a $500.00 KW....

 

The idea of having $20 grand in the bank for repairs is crazy. If you have $20 grand in the bank and blow a motor and spend that money on the repair and loose 2 weeks of work your in the same boat either way,no money in the bank and no cash comeing in. Any start up company is a gamble i dont care how much cash you have on hand thing happen beyond your control that can put you out today. I started 22 years ago with a 4 year old frieghtliner glider with an $800 a month payment and a $2k flatbed and very little in the bank but hard work and good shippers help pave the way to succes. In the first 6 months i lost a motor and a turbo but found a way to make it. Took out a $5k loan for the engine and paid the rest with the cash i had in the bank the next 6 months where hard but i survived it. In the end it does not matter how much cash you have thing can happen to put you under either way the cash will help but its not the saving grace.

 

Well put rbht!! This is the point I was trying to make I just couldnt seem to write it as clear.

 

That's funny. I wouldn't go cross this country in a $500 car. My first truck was a Freightliner Cabover and I had to overhaul it after two months of ownership and it cost me about $4000 to do a complete overhaul on a 400 Cummins and that was in '93. The shop did the work and had me back on the road fast. You couldn't get a overhaul for that price nor find a shop that gives a shtt now days.

 

i bought my 2005 century with a warranty, have a $1200 payment, already had everything i needed like gps, maps, laptop, tv, cooler etc, leased a trailer, $100 a week from the company im leased on with, had around $1000 spare cash in the bank, Warranty paid for a breakdown 1st week out, company advances fuel money, pays me 48 hours after delivery, no insurance or trailer rental payments for first 3 weeks, thats how i started, worked out great, my total outgoings to company are trailer/insurance/plate $175 a week, + 20% of linehaul. so you can start with very little