Do i go totally independent O/O or lease on first as a car hauler?

Hello im in the process of purchasing a 2009 semi was looking to work under a company authority to start , Im not the driver I have a solid guy with all exp.. and will place him in the rig just requesting tips or different options to get a great blessed start?

 

the only thing to consider , beside the usual (break down fund, fuel, ins, work comp, title & registration, ect), is pay structure... my recommendation is a percentage based with a fuel mileage incentive... this encourages the driver to operate more responsibly... and he has a stake in his income....... good luck

 

I sure don't want to tell you how to run your business, I was merely trying to get you to think twice before cashing out a 401k and paying nearly 40% to do so. I also was hoping for you to think about an older truck to start, maybe $75,000-$130,000. The difference in a truck payment on $250,000 and $70,000 is huge and would pay for more maintence, total Cottrell rehab and breakdowns than you would ever experience. I am friends with many former Allied Owner-Operators, some had brand new Pete's and others had 10-12 year old Volvo's. Both had breakdowns routinely and both hauled the same number of cars for the same revenue. The Pete owner paid $1,000+ a week to the bank and the Volvo owner put that extra grand a week in his pocket. If you are set on a new/newer Pete then you should get you one. I had one at 23years old many years ago and it was a valuable lesson for me personally to learn. I learned that I preferred a good paycheck driving a slow ugly company truck and not sending the bank a big check. I still would like to be my own boss somedays but, my 12 year old Volvo Cottrell company total rehab strap truck rides the same as my Pete and it can flat haul some cars. It may not be pretty but it is a workhorse. Good luck with your business venture and I hope you make a bunch of money. When you pass my old Volvo don't feel too sorry for me, it's not that bad and I am one day closer to retiring to the beach full time.

 

Buying new doesn't guarantee that a warranty will cover everything on a truck. Many of the new trucks spend a considerable amount of time in the shop. Even if it is covered under warranty, you will still be losing income when the truck is down. Unless you get a lemon there is no reason to expect a good used truck will require that you spend all your money on maintenance. I prefer having a low or no payment and spend a little on maintenance than having big payments. Some of the basic maintenance issues will be the same on a new or used truck. One of the biggest costs are tires. Both new and used blow tires. As long as you keep up the maintenance there is no reason to expect that you will spend huge amounts on maintenance. The engine and drive train are the most expensive aspects of a truck to repair. If you check those out in the beginning and do your oil changes and pm's on a regular basis, there is no reason to xpect that you will have major maintenance issues.

 

AMEN!!!! Mr LBZ

 

When I bought my first car hauler I leased on to a carrier for two years. I recommend that option. Taught me a lot about the business side of car hauling. It is a steep learning curve out there on your own. You get to learn how to operate your truck without the stress of sales, accounting , and safety depts right away. Take it in stages. Who knows, you may lease on and love it. When you get out here on your own remember you are one truck. You cant compete with the big boys on volume moves. Which means you are gonna have to haul POV's on central or strave as a sub hauler for the big guys. Trust me my first year on my own was rough.

 

The rates out on your own are hit and miss right now. I have my own authority, but thinking about leasing back on with a big company. The % you give up is about the same as hiring a secretary to handle paperwork if you are out running on your own.There is good and bad in both, I am just getting lazy and it is easier to let someone else handle getting and scheduling loads,billing,collecting, ifta, insurance,tags, etc....... These things are all done on your off time if your run on your own. And you are ahead of the game with as new of equipment as you can afford. Old equipment is prone to mechanical failures, none of your fault, but damages due to them are still out of your pocket.

 

That is the exact issue I have 7 years in. You think you are getting somewhere moving cars for a larger broker/carrier & they buy more trucks. You know what that means.
Also gets under my skin when I know what the rates were even in 2009 & see them significantly lower today with people expecting them to move. The bad part is they usually do.
Have had a dealer tell me that people moving $.45 cpm are making too much money. The odd part is he owned a stinger, sold it when his driver left & was looking to buy a new one for a new driver.
So he knows both sides, or should have.

Would opt to lease on somewhere if I owned a stinger vs my 7 car, but only AFTER talking to a number of people currently leased on. Not bubba trying to get some bs referral money for getting you in the door crap.