The journey begins - purchased a truck.

Thanks. I certainly don't have as detailed a writeup as DY - I have to figure out my picture transfers too . . .

I think you're on the right track mentally. I liked the fact DY went van, and full O/O right off - his figures so far show that yoou can't simply dismiss van freight to the 'cheap' seats. My thinking was flat offered better rates, but it comes with it's share of equipment costs and volume swings too. One of my deciders was the need for some physical exercise after 7 years solid steering wheel holding.

We intended to start February 2016 - and would have gone in with cash up front for everything, with reserves set aside for maintenance and 'oops' funds. It's a personal flaw of mine to jump the gun on projects, often half ####ed - but one tidbit of KR's advice made sense to me (but not my morre fiscaly conservative wife) - in that, If you start a truck operation with a bunch of cash, you're less likely to budget shop, and scrape together to make it work.

That's certainly been the way. First mistake was looking for the trucks on Truck Paper, finding them, getting all excited, then becoming depressed when we'd agree "not till next year". That progressed into looking at local finds, investing in reports and dyno, and then . . . a big red thing in the back yard!

I remember a teacher saying "The Japanese perform 90% research and planning, and 10% actual work" - and I think the research is very important. Of course there's a balance - after looking at the KW, and pestering the owner for details, having his shop run the ECM in front of me . . . I returned home and reported findings to the boss. After listening to me for a while she said . . . "Well? Are you gonna buy it or not? You've been faffing around with looking at trucks for the last 3 months - if you think it's a good truck, then go and clean out the accounts and buy the dam truck!"

I'll say there was a lot more involved in the process - even leasing on with a pecentage based company - than I thought, and it takes a bit to arrange while you're still out working company, but still easily achievable.

I'll also add that there's not a lot of "freedom" involved - it'll be my truck, and I can modify it as I see fit, and open it up to 90mph if I want - but I still have to play by the rules of the FMCSA, DOT, Landstar and the IRS. Any foolishness in any area will have my butt back in a company truck in an instant. The main freedom for me will simply be the 'book the load if you want it, when and where, and for how much - depending on your needs".

 

Appreciate it.

 

Trailer, and financing.

Called LS today and got the recruiter and the lady from trailer utilization on a 3 way (call, folks - minds out of the gutter), to confirm that YES, the open deck trailer rental has been suspended as of January 1st until further notice. Trailer rent of $170/week and 73% of revenue, has been replaced by no rent, and 65% of revenue. I imagine they'll be a few nasty phone calls from new BCO's who may have qualified late December, and picked up a trailer in the first 2 weeks of the year.

At a load board rate of average $3/mile, and 100,000 miles/year, this represents $24,000. The new 53' spread with 2 tool boxes prices at $30,119. I think this is a no-brainer. Remember, my initial thought was to rent for 2 months and assess my local market for trailer need before buying. Between working and looking, this could easily stretch to 3 months - or $6,000 in lost revenue. I'll take a calculated bet that a 53' spread combo will give me the most versatility and go forth. The trailer will not be available until Feb 26th.

After a 14% offer and a 22% offer on trailer finance, I got in touch with our bank. The options are:

1) -$25,000 unsecured loan. We make up the $5,119. Rate is 8.5-9%

2) - $30,000 secured (trailer title lien) loan for full amount - rate is 4-5%. This is currently being reviewed by head office as they consider trucking 'high risk', and will be assessing it on my personal credit score, but offering a business loan rate.

The business accounts are set up now, they approved the credit card for $5,000, then sent it in for a $20,000 limit which approved. I think they goofed up, as there is another credit account with $20,000 available that appeared also. Not sure if I need to shut that down or leave it open for the credit score gain.

Health insurance

Slight hiccup. Went to the podiatrist today, she has a bunion that I've been hounding her to have taken care of. Needs surgery, Feb 12th. The other foot will also require it, but can't be done at the same time. We're on a call list for cancelled surgeries, so may be able to get in earlier. 3 week wait between feet, and would be ideal to have this taken care of while currently covered under insurance. I asked the doc what his cash price is - $800, and then there's the surgery center and anesthesioligist for another $X . . .

Worst case scenario we'll have the other foot taken care of later in the year once under our own health insurance. It doesn't bother her yet, but it will.

Qualified!

Qual center rang to say the drug test results came back and they said - "sorry, the crack is still in your system". I said "I know - why else would I consider buying a truck" . . . and we laughed and laughed. Aaaaah, the hilarity. No. Seriously. Qualification is done with me, now it's corporates' turn to give the final OK. I have the number for the Ft Worth orientation center, so I'll call tomorrow and plug her with lots of questions. Plan is to fly down for the week and get it done.

We raced (and I mean raced, 1560 miles in 27 hours - 65mph truck) back from L.A. to make the podiatrist in time, after 28 hours waiting in the motel on freight. I'm getting a bit old for the whole "up 24+ hours" game - something I won't miss. Catch some sleep tonight and hit the dentist (again, get the health insurance while it's there) tomorrow. Back out Friday I think.

So - kick off is looking like early March. This will give time for the tax return to come in, preliminary figures pending the W2's point to $9,500 (state and fed), which will help ease the possible $5,000 trailer deposit, and have a little in reserve for transition.