New guy - wants to buy truck, split profits with driver

If you're looking to spend $60K, then you're probably much better off making it a gift to your friend and let him either make something of it or not and save yourself a lot of grief.

It will take more than that to get your truck & trailer, and make any repairs that are needed to get them legal cause used equipment usually comes with flaws that have to be fixed.

Then you have to apply for, and spend about another $3-5K for your operating authority, permits, tie downs and chains if you go flatbed, another $8-12K for insurance, and then you still have to be able to afford to run the truck for at least a month and a half once you do get started, because you don't get paid for that long after you have spent the cash to deliver the freight.

And if your friend gets ticketed running under your authority, you can be fined big bucks. I'm talking tickets that can cost you thousands, not hundreds. There is also strict paperwork that has to be kept up, and DOT will come inspect your records to make sure you're doing it right. If you don't that's on your head as a carrier. There's a lot to this that you need to think over.

You sound like a real good friend, but probably not ready to tackle setting up a trucking business. No offense, just don't think you see the big picture.

The last thing, there won't be any profit for anyone until you get that truck out and running long enough to make all of that investment back.

 

Might wanna take a look at how much that low boy is gonna cost and your insurance just went up also. Probably will have to buy oversize permits now also. Rates are going to be better but expenses will be more also.

 

"A fool and his money are soon parted"
If your friend has ten years experience,he shouldn't have much trouble finding work by himself without your help.Why do you feel compelled to do this? What you're planning on doing is a guaranteed way to break up a friendship.You don't have to buy his friendship,if you do,he's not really your friend,just a smooth talking con man looking to take advantage of your generosity.
Talk to your lawyer and your accountant,they will be able to guide you if you go through with this.

 

Sounds like from your post you'll be pulling local for another friend who owns an equipment company.... How busy will the guy keep you? How will you pay the driver? check all enviromental laws and see what a certified truck will cost you.. Insurance will also go up... But if your willing to spend the money to help your friend i'd say if you look at it as an investment it will probably cost you a friendship if you do it as a gift then you could probably keep a friendship if it all fails. Go for it if you got the money to lose. Good Luck

 

I'd have to agree with them. Gift him a truck and let him go it alone. He can lease onto Landstar and then basically do whatever he wants. That's about the closest he will get to being on his own w/o the costs involved in going out on his own authority. They will provide plates, permits and cheaper insurance than you could obtain. All at a low cost.

 

My question for you is how big of machinery is your friend renting? Do you have any idea what kind of equipment it takes to move 80 to 120 thousand pound machinery? 60 grand will cover about half the trailer and your not going to get very far with those kinds of weights with that pos Volvo with an automatic.

 

If it was easy and lots of money to be made, their would only be big companies with trucks, no lease purchase deals, the teamsters would be strong and Yellow/Roadway wouldn't be broke x 10.

 

Good choice.