Estimating Expenses Before Buying a Truck

Discussion in 'Ask An Owner Operator' started by Duke979, Oct 11, 2012.

  1. Duke979

    Duke979 Bobtail Member

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    Oct 11, 2012
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    I am in the process of trying to figure out an estimate of me expenses if I take the plunge and purchase a truck. I have been driving for 10 years so I am not a new driver but never really considered this before now. I am looking at a truck payment around $1600 per month on a 2008 Kenworth T2000 with a 3 year engine, powertrain and axle warranty. I have done some reading on this forum and other places in dealing with costs but there wasn't a lot of actual figures posted. I should get approx. 6.5 to 7.0 mpg and it has a bunk heater which will help keep that down during winter. I am looking into signing on with Landstar or Fremont. I know how much tags, and IFTA will be but how much should I plan on sitting aside for maintenance and breakdowns, taxes(business and personal), insurance, and accounting? Percentages of weekly check to sit aside would help me figure out my personal earnings and also minimum earnings a week I would need. One person recommended on a website that you take these percentages and set aside:

    Truck Payment- 16%
    Insurance- 5%
    Maintenance-6%
    Accounting/Tax Prep-1%
    Escrow Account-1%
    Tolls/Pallets/etc.-2%
    Out of Route Fuel-8%
    Fuel-35%
    Salary-24%

    Do these seem realistic or should they be adjusted. I'm not sure which category tags, ifta, and permits fall into.
     
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  3. dude6710

    dude6710 Road Train Member

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    Id set fuel at 6mpg, every truck is different and its hard for me to hit 6. What motor is in it? rears? trans? what will it be pulling?
     
  4. Duke979

    Duke979 Bobtail Member

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    Oct 11, 2012
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    The 2008 I am looking at has a history of 7mpg on the computer. It has an ISX Cummins 475hp with 3.55 rears and 22.5 tires. I live in PA and my preference is to run midwest, and southeast as much as possible.
     
  5. snowwy

    snowwy Road Train Member

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    the newere isx motors are famous for cam wear. then you have the typical egr and turbo issues. and if that motor has close to 1 million miles. you better plan an overhaul. one thing i have learned. come down with an electrical gremlin and you can plan on wiping out the bank before the problem ever gets fixed. 95 percent of the shops out there have no clue how to fix electrical. and it'll cost you $500 each time you have a mechanic look at your truck and scratch there head. people say that you need money in the bank. i've had my clutch replaced twice in one month. turbo replaced twice in one month. 3 months on an electrical problem. oil leak fixed 4 times and still not fixed. now i've got TWO oil leaks. 5 months ago this truck ran like a champ. now it's falling apart faster then it can be fixed. another thing i have learned. NO ONE WANTS TO TOUCH THE ISX MOTOR. other then kenworth and cummins. and there labor ISN'T CHEAP.b 20G spent in 5 months.
     
  6. snowwy

    snowwy Road Train Member

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    and to think i typed that entire comment in seperate sentences and paragraphs.
     
  7. Lilbit

    Lilbit Road Train Member

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    You seem to be missing a few things. Check out post #3 in the thread linked below.

    http://www.thetruckersreport.com/tr...becoming-owner-operator-steps-forms-info.html
     
  8. Lilbit

    Lilbit Road Train Member

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    Some of the things that you seem to be missing are permits (licensing fees), IFTA (taxes), IRP (registration - registration). I have a PDF that shows more specific, including some amounts, but I still have to figure out how to share it, since it's on my own website.
     
  9. Duke979

    Duke979 Bobtail Member

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    Landstar wants $1650 got plates and $200 for permits. They said Highway Use Tax was approx. $500. How much should I expect to spend in fuel taxes above what I spend at the pump?
     
  10. Duke979

    Duke979 Bobtail Member

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    Oct 11, 2012
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    I have adjusted my percentages now to this:

    Estimating Earnings of $160,000 a year
    Figuring a minimum of $1.40 per mile at 114,000 miles per year approx.

    Truck Payment- 11% - $17,600
    Licenses/Permits/FHUT/Tolls/Scales/etc.-3% - $4,800
    Insurances-4% - $6,400
    Fuel-47% - $75,200
    Maint./Repairs-7% - $11,200
    Personal Income-28% - $44,800

    Do those look reasonable?
     
  11. Cat sdp

    Cat sdp . .

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    The 08 trucks are the worst of all of them. A 07 would save you lots of headaches . Your ins is a little high if your going to lease on somewhere.

    Good luck......
     
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