How much per mile to make a l/p work?

I would rather buy a $40K truck, and pay it off in 2 yrs, and run that route. Most of the posters are correct, a LP isn't a good way to go.

 

No, most of the posters aren't correct. I'm a L/O, out 3 weeks, home a week, making more money than I've made in my life. I'm in a newer truck. Secret to success is pretty simple. Keep moving and keep out of the shop. I'd never lease an older truck. Sure you might pay it off quicker, but you'll have way too much downtime and maint expense.

 

So says the kid with 2 years experience. Nope we don't know what we are talking about. And yes I'm sure you are making tons of money for the company who is letting you pay their truck note.

 

So because I have 2 yrs experience I don't know if I'm making money? Makes perfect sense. Sometimes it's the drivers with all the experience who don't know what they're talking about.

 

Scott72, while you may be making more money than you ever have in your life, in the bigger picture I think wsevon was saying is that you would be making MUCH more money if you purchased a used truck for $40K on a two year note AND had the ability to lease that truck to any company you want. Likely your revenue would be greater while your overhead would certainly be smaller.

When I was getting into my first business I went to the SBA to talk to a SCORE (Service Corp Of Retired Executives) representative to review my business plan. His first statement to me was, "Why do you want to buy a job?"

"Huh?", was my reply.

"Why are you spending so much money to buy a business that pays you the same as a highly paid employee? Where's the PROFIT? Think of it this way, if you hired someone else to do the job for you, would you then have a profit?"

Wise words. Never ever buy a truck in order to make employee wages. Only buy a truck if you can make enough to pay yourself a decent wage AND make a profit on top of that. wsevon was noting that if you START OUT as an O/O you are better off buying a less expensive used truck, leasing on with a company that will pay more revenue per load, and making a PROFIT as a businessman.

 

Makes good sense.. The real big money comes in after the truck is paid off. The reason I went newer is I'm under warranty for another 400K miles. While I'm covered for a lot of major things I can build money up in my business account, which I've been doing. If something happens after that period, I'll have the funds to cover it. I'm just not a believer in leasing something older only to get buried in maintenance bills. Maybe my plan will blow up in my face too, but so far so good. I just don't get all the guys that trash leasing. It can be done successfully.

 

2dpm or better

 

At the bare minimum.

 

well FIRST you have to decide what YOU want to make (forget the company and the truck)

lets say, you are just starting out, and you want to bide your time till you get experience, you have no wife and kids, so $500/week is fine

if you need more, then figure that

now after you get THAT number, we can begin class

figure most mega companies are going to charge you $1000/week for the truck, you are going to run 2500 miles and 2500 miles @6mpg is going to cost you 416 gallons of fuel at $4/gal,, so we are talkling $1700,

so now we have $1000, plus $500, plus $1700, means you must generate $3200 to the truck, MINIMUM to make the money YOU need.

now go back to werner, snider, england and see how much they are going to pay you to get that $3200 .98/mile means 3300 miles, which you may never get

$1.50.mile means 2200 miles

so any company that is not going to pay you $1.50 is out of the question

and thats to make $500/week bring home, before taxes

 

my personal opinion is always NEVER be a company driver if you ever hope to own a truck

i know too many company drivers that fail because they have developed a "company driver" mentality which is much different than a lease or owner operator

leasing teaches you to approach this as a battle, whereas company drivers are riding the company wave their entire careeer