What to buy?

I can add nothing to the statement made by Larry parker,it says it all.

 

Like Larry reiterated, not a good idea. Not only that but if you fail at lease op you will pretty much be barred from trucking because they will really do a number on your DAC report along with seriously killing your credit. Also once you bail on a lease they will charge upwards of $10,000! They have very good lawyers and will not hesitate to come after you for a judgement and lien on your house.

You have shiny truck syndrome. If you didn't you would go about this the right way. You don't even work for the company you are wanting to lease from yet and that in itself is setting you up for 100% failure. Without first driving for a company for at least a year there is absolutely no way of knowing what your potential income is going to be. Without these figures it is impossible to right a precise business plan. Without a business plan you surely will not succeed.

 

You said that you are getting advice from guys you know who have been in the business for 30 years. Out of curiosity, have they mentioned anything about the failure rate of people who go the owner/op route right out of school with no experience?

You also say that you're going to buy a brand new truck but you won't have to finance it. So we can assume you've got access to $160k in cash. Since you're getting advice from these 30 year fellas I'm going to also assume they've told you that you're going to want to have at least $20k in cash available at all times to cover bills and keep the wheels turning on the truck. So lets further assume you've got $180k in cash burning a hole in your pocket.

So that begs the following question. If you've got $180k in capital and you want to use that money to earn an income from trucking, why not just find 4 $30k/500k mile used trucks and lease them on to a company and then hire 4 of your classmates to run the doors off them for 300k miles, resell them @ 800k miles and buy 4 more trucks, lather rinse repeat? That sort of plan seems like a much better use of capital if you want to make money in trucking don't you think?

 

Ok so hire three drivers instead of four and drive the forth truck yourself. Still makes a LOT more sense than buying one brand new truck straight out of the gate.

You've got enough scratch to buy a brand new truck and you'll be able to survive on $250/month. So I'm guessing you're in a financial position such that you don't actually have to work. In that case, forget pretty much everything that's been said here. It doesn't apply to you. Go to some dealers and drive everything they've got. Pick the truck you want, buy it and go find a carrier that will take you on. Then drive until you get bored with it. Will you make money? Probably not but who cares? You'll be living your dream. I envy you. I really do.

It varies from company to company and from O/O to O/O. Some guys run their business like a business in that they do everything possible to maximize income revenue and everything possible to minimize expenses. Those guys will generally make more than a company driver running the same loads. Others who take a less businesslike approach to it tend to make less than company drivers. A lot less. Bankruptcy less.

 

Brownsfan I don't know if the starter companies allow there trainers to train you in your own truck. Ok Less say you buy a truck and lease on to a company and find out you hate trucking. Like most find out. These companies are leasing drivers on at .90+ cents a mile. If you have a truck payment you have to pay that. If the season is slow. Such as a bunch of trucks and little freight. That usually happens after January-March. Can you survive. Do you have a wife who wants you at home? The reason they say its a driver shortage is because nobody wants to pay the drivers. The drivers don't like being away from home. Too much junk to put up with the regulations in trucking that prevents money from entering your pocket.

You know a new truck is cool. But what sucks is when you jack knife it and have to go around with bent fairings or Less say a dear hits your truck and you have to drive around with a jacked up bumper. Oh less say your truck breaks down under warranty. No prob just take it to the Peterbilt dealer and you should be right out of there. No. They say they can't even look at your truck for 4 days. Now you are in a Hotel room for 4 days. Not making any money truck payment is due. Mortgage is due and your wife's car just broke down. Then you find out how many crooks are in the industry when you find the company over charging you for fuel, or permits or you name it.

I also wouldn't buy a used truck because they are junk and will nickle and dime you to death. Even the new trucks are junk. Your fuel millage will be higher for the most part because you haven't broke your truck in. Do you know how much a tire cost? Do you know you have to pay for the fuel in your reefer that a company driver gave to you and you have to have it at 3/4 fuel when you drop it in the meat plant.

So what do you think. The company is going to get their company drivers loaded first. Or their high paying O/O. They will get there lease purchase guys loads b4 you because that's just money in the bank for them. You have to take all these into consideration. It looks easy from the outside but seems like you haven't even got behind a wheel yet. Hope you make a wise choice. Good night.