Owner operator worth it

Expecting a $40K annual return on a $30K investment is possible, but not very likely. I know you view this opinion as not being helpful, but sometimes the help you need is to hear what you don't want to hear. Trucking is such a commodity that profit margins of truck ownership are typically around 3%. Those owners that are able to run older trucks with low maintenance costs can operate at a higher profit margin, but being a one truck operation, all your eggs are in one basket, which is a risk those companies running at 3% don't have.

Good luck to you.

 

just talked to pa.disability the other day, based on an income of 35000,it costs over 6000 a year about 2000 up front the rest due by the quarter. many carriers are now requiring it as well as many customers incase of an incident on their property. aftermarket plans such as ooida are not accepted, point being your figure for workmans comp is way to low. Best of luck to you.

 

After looking at it I see you have tires and maintenance funds separate so if you combined them it would bump it up a little. I figure setting aside around $15k/yr or a little more running as much as you plan to is a good idea. You may need it or may not but good to have. Trucks can certainly nickel and dime you to death, doesn't matter how old or new they are.

 

Well your numbers certainly sound possible, albeit unlikely.

Essentially you're running those numbers on a long term plan (4 months/1 year) which is one way to work out averages....

However: real life isn't just the long term.

You buy your truck, you pay all your way in, your brother gets to trucking and 3 weeks in you've gotten a settlement check or two...paid your brother....and the motor ventilates itself.

Maintenance account hasn't built much at that point.

Or contrarily: you buy in, your bro runs a month and says it isn't enough money.

Can it be done, yes. Certainly a risky proposal.

I have a brother I'd like to help as well. I feel where you're coming from. If he isn't striking to do this on his own: he's buying a job and you're paying for it.

With all the threads that have been started about being an absentee business owner of a trucking company, I'm somewhat surprised to see you set so firmly in the opinion that it's likely to be a successful venture.

The basics: you're numbers sound good on paper. Would a bank give you a loan for the amount you're about to spend with the plan you have?

 

what he means is number one, I'm pretty sure it's illegal to log 4000 miles in one week as a solo driver because of HOS. Number two you'd have to be an insane individual to run that many miles in one week consistently. Another thing is since your paid on a percentage then you need to pay your brother on and percentage because if he has two or three low mile weeks in a row then he'll prob quit. Percentage is fair. As far as your return it will be depending on the truck you guys pick out.

 

Assuming he's what we call a good driver you'd have to offer him a deal that'll make him not inquire other job openings like benefits of a good company. On the flip side if he has a background with issues then you might wanna see if the company your leasing onto will approve him as your driver

 

As several have said since I made a point you do not like. No matter how you choose to see it your venture will be an uphill grind. You asked for info and you got it. It isn't my problem that you do not want to hear what we are telling you. Que sera, sera

 

I would double the repairs number, especially buying a truck at the price you mentioned.

2400 miles a week would be closer to reality if your driver intends to be home on weekends. Many times it is hard to find that load to get you by the house for the weekend. If getting home is very important, like it is to me, there will be times when the driver will be coming home empty. Not good for the bottom line but good for the family.

I don't recommend the grain hauling unless you have very good customers already committed to you. Go to bulkloads web site and read what truckers doing it are saying about the rates.
According to them they are in the tank or at least have been. It may be better now that harvest is in full swing but that will pass. I tried the hopper bottom a few years ago and it was a disaster. I know nothing about hauling milk but I would think it would be better but also harder to get into. If you are leasing to a carrier make SURE they have the work for you.

If you are leasing to a carrier you will still need insurance to cover damage to the truck as well as bobtail insurance. The carrier will cover the liability except bobtail unless you have other arrangements.
The cargo insurance is a little high. It will vary depending on the cargo. Just renewed mine for under $4000.