Capital Allocation

Do you have any experience in this industry? This industry can bankrupt you in a hurry if you dont know the ins and outs. If you have no or little experience I would invest elsewhere. If you are dead set, I would contact OOIDA and consult with them and utilize thier seminars.

 

New truck will cost you around 140-160K. If you have no experience then there will be lots and lots and lots and lots of people that will tell you that you should be a company driver first unless of course you are not planning on driving and just finding loads for the truck and someone else drive then maybe that is an easier route.

If you put down a big down payment on a truck then the monthly truck cost should be less. I would set aside 30K right away for maintenance to the truck at least that is what was suggested to me. Also it takes 30-60 sometimes 90 days to actually get paid for the work you do so you need to be able to cover all the expenses for at least the first few months out of pocket for the costs of running the truck.

Also remember that getting insured is going to be your biggest obstacle. You are looking at minimum 12-20K for a new driver a year for insurance.

Once you figure out which truck you want and all the operating costs you need to figure out how much you need to make per mile to make money. Every truck is different some people only need to make 1.60 per loaded mile while others need closer to 2.00+ a mile. Obviously the goal is to get the highest paying loaded mile you can but having the price point for what you need for your truck is most important. Just remember it all varies from truck to truck.

If you buy a used truck your upfront costs will obviously be much less but then the risk of the truck having a major break down also increase. If you do decide to get a used truck make sure you can take it somewhere and get it tested so you know of problems the truck might be developing or could have.

The next question becomes do you know where to get freight from and how consistent that freight is going to be? If you know you can get good enough paying consistent freight then you should be able to make money.

Also remember going this route goes against probably 97% of people who start in trucking.

Good luck!

 

can you put that money into trucking without tax problems? also the bottom line in trucking is cost per mile, everything else money wise is just a matter of good business, lots of luck in your new adventure jon

 

I think you're right to drive for at least a year to learn the industry from the driver's perspective. There are so many variables particular to this industry. Things you didn't mention like where you live and how long you are willing to stay out come into play. If you did well with your business and are a good business person, that will be helpful. This is a very commoditized business however so there is rarely easy money out there. If you can, find a company that will allow you to see what the invoices are. That way you'll get a feel for the revenue potential.

Best of luck to you.

 

he current problem with a couple year.old truck around 300k miles is it puts you right in the middle of the worst trucks ever built. new emision systems that were troublesome and expensive. i would suggest either a new truck or something around a 2000 model. that truck you could buy cheap and have the motor, trans and rears rebuilt and still have operating funds and maint funds left. those motors run better, longer and are more fuel efficient. the down side is california is quickly pushing them.out if you want to run out there. i csnt even get my 06 into the ca ports anymore

 

Im glad you are doing it right by driving for a year and learning the ropes. A lot of guys jump in head first and lose everything. I would still suggest OOIDA trucking seminars, they are a good information tool. And if you can talk with the owner of who you are going too work for, pick thier brain for a while.

As far as trucks, it may be a good idea to go a little older at first, maybe 05 or 06. They still had EGR problems, but not nearly as bad as the 07 to current years. You can find some of those older trucks that have already been over-hauled for a good price.

 

your looking at 4.5-5.5mpg with those early egr motors. at todays fuel prices thats a loosing battle.

whats worse a truck that gets 5mpg day in and day out and needs a $2500 egr every two years (at best)

or a dpf/def truck that gets 7mpg and breaks down much more often?

your guess is as good as mine, its a rhetorical question. my vote is to go older and take itvall out of the question untill they get the technology to where it works reliably. its not there yet imo and its expensive and heavy