Per mile operating cost?

No need for a correction, its been around for ages. Not too many people use it let alone have the discipline to keep using it.

 

$20K truck = 700,000 miles. There is a reason why its being given away. It is just about to become cost prohibitive to own.

 

What were the cost from the other places with no recent exp? ON insurance

 

FYI - OOIDA has a CPM spreadsheet on their website. It can be used for making projections or tracking your actual expenses. I've used it for years and it allows changes for specialized requirements.

 

It's being given away because it is a fleet truck, and everyone knows this. Anyone that is looking at buying a truck like this should go in with both eyes open but, it can be a profitable buy. Personally I would do oil analysis, over head, dyno, air to air test, radiator pressure test, rig dig, dot inspection by outside vendor (preferably someone I trust), replace bull gear, replace lube in diff's, MD alignment and not necessarily in that order. I am sure I am missing something as well, going of the top of my head, and anyone that knows me knows, I shouldn't do that..lol

The point is; a truck can be bought at $5K, $15K or $20K and be profitable. Just to make a bold statement that a $20K truck with 700,000 miles on it is "Cost Prohibitive" is not being 100% honest.

For the record, I would barter on that particular truck and get it below $20K,, as long as everything else checked out of course.

 

I wanted to wait a while before weighing in some more with an observation. Posts so far tend to agree.

After reading dozens of similar posts, along with my own numbers, it seems fair to say that it costs about a buck fifty a mile to move a truck with general freight (van, flat, reefer), not including driver pay or ROI or whatever else you choose to call what you keep after expenses are paid.

For some, that number may be different if you lease to a carrier that pays for some of that. Mainly insurance, but also fuel, tire, or other discounts, trailer cost, and whatnot. Well, you actually pay for that - it's part of the cut the carrier keeps off the gross revenue. It just looks lower when you look at it from a settlement minus your out of pocket cost perspective.

About the only variation I've noticed is a range of about 25¢ off that $1.50. Experienced hands, with the lowest insurance risk, and most knowledge on controlling operation costs can get down around $1.25. On the other end, new entries, with high insurance costs and spending a bunch more on maintenance/repairs due to restoration on old gear or just being naïve, are usually up around $1.75 or more. If you're much lower than $1.25 you're usually leaving something out. Equipment replacement, repair budget, something.

 

I was quoted $12,000 on a 2009 Freightliner Columbia that I was thinking about buying. That was, if I remember right, $3500 down and monthly payments for the rest. I tried to find it but, unable to.. Anyway, my point is that your area of operation can make that number go up or down, as well as your truck, your time as a driver and record.

Your doing good though, by getting an idea of what your going to have to pay for Ins.

 

Agree Red, most people that have a CPM below $1.25 are looking at actual cost NOW and not including the replacement of anything. Now that is a valid number to have but can lead to some surprises in the future if you are not planning.

Anyone remember that guy a year or so ago that was running down all his L/P numbers and swore up and down that his CPM was in the $.80 CPM range.

 

Amortization and maintenance accounts and such phooey. Obviously you folks have no idea how the trucking business is designed to work. The idea is to encourage all manner of non business people to buy a truck and run it below cost so as to subsidize the economy. By the time they figure out they are losing money there will be a fresh batch of non business minded truckers to take their place. And so it goes. Freight costs are subsidized by these folks. Not to worry. Cheap freight is good for the economy.