Newbie interested in trucking business

you can get some info of this thread: http://www.thetruckersreport.com/tr...tor/158524-new-guy-wants-buy-truck-split.html

 

On a side note Bigbadbill will probably put his standard advice in here with a link to some threads. One thing he will recommend is to read all the docked threads in this section.

 

The question you should ask is"Why would a company want to lease from you if this is a profitable business." Doe

 

The question you should ask is"Why would a company want to lease from you if this is a profitable business."

 

What you have is a classic bad idea. If you have money to invest, buy a CD. Even with low interest rates you should make about the same if you don't have experience and don't plan to drive the truck yourself.

If you find a good driver, he works hard and you have great luck you should be able to make somewhere between -$5,000 and $15,000 per year from the truck after paying expenses and driver.

There are many leased to companies that make less than drivers wages. If you find yourself in one of these leases, not only will you not make money, you won't be able to keep a driver. A bad driver can cost you hundreds to thousands before you can get him out of the truck. Unless you know and have worked this industry it will chew you up and spit you out.

There's an old joke, "Do you know how to make a million dollars with a truck?" The answer is, "Start with two million."

If you insist on this you have a few months of learning to do. Then you need a large chunk of operating capital after purchasing equipment. If you do this you probably have a 30% chance of success. Decide what you are willing to lose before starting and have an exit strategy and know when to use it.

As said above, read all the docked threads in the "Ask An Owner Operator" section. In addition, these threads are especially good ones too:

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/146942-how-to-become-an-owner-operator.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/147854-what-would-experienced-o-o-buy.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/125507-what-estimated-operating-costs-o-o.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/148340-keeping-track-o-o-operating-costs.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/134211-no-experience-but-getting-authority.html

http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/143100-rate-confirmation-question.html


http://www.thetruckersreport.com/truckingindustryforum/ask-an-owner-operator/64679-my-numbers-o-o-leased-crete.html

 

While much of the above is true but only on one level the thing is the "gig" there are many out there that are very profitable and about five times as many looking to bait the suckers
The bad part of your idea is the hands off approach at the start as there is more to it than one thinks but with the knowledge to spot a good one a truck can clear ya a grand a day in the right gig and on the otherside a bad day can take 20k from your pocket and a bad gig can cost you $$$$ to make some one else a grand a day

 

2fuzy is right. The problem is that 80% of the new owner operators will fall right into the trap that I posted about. A few are wiser, have researched harder, are downright lucky or like myself have learned from the "school of hard knocks". The absetee owner idea will leave you at a giant disadvantage.

I too see some really great opportunities for truck ownership right now. The big problem is the ones that pay the best require a lot of operating capital to keep you a float. If you need 30 - 45 days operating capital that can be $15,000 - $35,000.

If I could find an investor right now, I'd make us both a fortune but I wouldn't do it without being right in the mix day in and day out.

 

So how's the new venture going? I hadn't seen you around in a while.