Buying vs Leasing

if you can get a decent interest rate on the loan, then do what you feel like doing. the big problem with leases is many drivers are paying 2 or more times what the truck is actually worth by the time they are finished with a 2 or 3 year lease. know what the truck you are looking at is really WORTH on the open market today, and crunch the numbers to figure out what you will actually pay when you are finished. if at that point you think its fair, and youd rather have the newer truck, then do it. its your money, its your decision. just go into it knowing ALL the facts. and good luck to you.

 

Good job on saving up!

My plan, if I ever go through with it, is to get a used truck for about $30-$40k and a trailer too (another $10k or so).

If you don't have a a trailer it is harder to get loads. Your power only and there doesn't seem to be very many loads available.

My plan would be to get a van 'cause there are more loads out there for them from what I'm seeing.

Plus, I'm not in to tarping and such in wind and rain.

I haven't figured out why a guy couldn't use a reefer as a normal van though and then use it as a reefer when needed.

Maybe someone could answer that.

Remember that 'ya gotta' have at least as much as you have saved up now for maintenance on the equipment.

That doesn't include all the other stuff. You probably won't be getting paid on a weekly basis as an o/o.

I'd say give it one more year and save, save, save.

I'm only thinking from a business point of view. No emotion involved.

 

If you buy, you will own the truck out right which is always good because you will have collateral. CASH IS KING! It's true, most leasing companies will charge you much more than what the truck is worth.

However, what do you plan to do with the truck? Are you getting your own authority? Lease on with a company to use their authority and trailer, whether reefer, van, or flatbed?

Your truck payment can vary depending on your credit score. I've seen from $1,000 to $3,500 for various trucks, year, make and model. This will also determine your insurance payment. This can very between $200 to $800 a month, again depending if you lease the truck on with a company and use their insurance or have your own authority.

With the current price of fuel, your weekly fuel will be around $2K a week ($8-10K a month). Again, this depends on the truck and the MPG it gets. I've learned from Pittsburgh Power that the 2005-2008 trucks have better MPG on average than a 2012-2013. With the regulation changes for EGR valves and such, it has taken a major toll on trucks and caused trucks to average less than 5.5 MPG after only a few thousand miles, Peterbilt in particular. This can be changed with a Pittburgh powerbox, but that can cost another $10K and only improve MPG up to 6.5 from 5.5. A major savings, but if you're at 4.8, you're not really helping yourself.

Find the market price of the vehicle you want, then verify the price again. Determine mechanical/maintenance costs on the age of the vehicle and MPG. Petes are amazing trucks, but their MPG is not that great. Once it's lost, it's gone unless you can put another $10K in the truck before it gets out of hand.

I work with a 100% owner/operator company and we crunch numbers with drivers looking to purchase trucks all the time. We do not lease or sell trucks. We can recommend truck sales and leasing companies, but ultimately the decision is yours. In a recent conference with Truckload Carriers Association, it was determined that freight is on the upswing for the first time since the Great Recession. It's a great time to buy a truck and even a trailer, get your authority and get truckin'!

If you have any questions, please feel free to inbox me and I will do what I can to help crunch numbers. Besides my current employment, I have a long list of owner/operators in my family who have been not so successful and others who have been able to become fleet owners even during the slim times in freight. Either way, best regards and I hope you find a place to call home that supports you, your family, and your goals!

@droflex - Yes, many operators purchase reefer trailers and use them as van. It's suggested that you get a bulkhead in order to carry both refridgerated and dry freight at the same time. Many Canadian owner/operators do this and there's been a surge (so to speak) in the US where operators are doing this as well. However, if that reefer ever goes down, it can be very expensive to fix and hauling dry freight only will not always support the repairs if it does. Keep up with the maintenance and watch loaders because if they are use to loading dry vans as they can damage that reefer unit.