Okay here goes

To Be honest, It's all trial and error. From what you stated plenty of drivers will say go for it. But the truth is, No matter what was done to that truck you won't know how it going to run until you have been under several loads.
From My personal experience you're going to need at least 3-5k on reserve because anything can happen

I'm not one to tell a person not to follow their dreams, Just make sure you can cover your self when you do make the Jump.

 

The statement highlighted above kills the deal for me.

 

Starting any business with no cash reserves, especially in trucking where your revenue stream is based on your equipment remaining operational, is very risky. Of course it may look good on paper, but reality is a different story. You will be taking on a lot more risk with limited return on investment. Why do you think so many carriers want lease operators as opposed to company drivers? To take away more of the risk and retain more profit.

You didn't mention how much this 2007 KW would be purchased for. 18 month unlimited mileage warranty means squat if the truck is in the shop for weeks at a time and you have no revenue coming in, which will be far more money than the cost of repairs.

Nothing personal, but do not be in such a hurry to be bankrupted the same way hundreds of thousands just like you who had the same pie in the sky dream but no cash available to cover expenses when the truck is not operational. Save up some money to cover at least 3 months worth of expenses and then you will have a much better chance of success.

 

Also, remember that your Accounts Receivable will probably have lag time that could put you in the hole while paying out for expenses with no cash flowing into your bank account.

 

As pointed out above, the statement made is the one thing to consider overall. if you have very little to almost no reserve money set side, don't even think about trying the O/O game. There are more stories of failed O/Os because of money than successful ones. You seem smart enough to recognize this before jumping in. Good luck!!

 

Is it possible to find a lesser priced truck that would leave you some operating income that is if you have some of your own cash to invest or do you want to finance the whole deal.

 

How many total miles? There's a lot more to a truck than motor and tranny

 

Hi HoyBoy, I agree with the others. When I bought my 1st truck, I had very little cash, but had a good line of credit. The 1st couple of months, I thought I was going to lose it. The truck had a recent major, but all kinds of little stuff, (broken springs, clutch, tires) almost did me in. I stuck it out, and it did get better, but taxes killed me, as I was too honest, and finally I sold the truck, and that was 20 years ago, I can't imagine how it is today. Don't despair, it can be done, and it was the greatest part of my career. Plan carefully, it takes a long time to get out of debt.