Truck and Trailer monthly payment $5200 too much?

Don't forget Coyote

 

That's not a very good way to start but anybody could have told him that. Ideally you buy a first truck for cash and then talk the owner into letting you use one of his trailers as part of the deal until you can afford your own. Oh and make sure he's got a spare seat in one of his company rigs if your new-old truck blows up and you don't have the money to fix it right away.

 

$5200 per month is a broker's wet dream. When a guy has a fixed nut that high he can't ever turn down anything. Keep turnin' and burnin'. Probably can last for a while but eventually high fixed costs will kill you. True in almost any industry.

Think about it. That's like $170+ per day fixed. Go home for a weekend and you start out Monday $340 in the hole. Sit a day waiting on a shipper and your $500+ in the hole. Go in the shop for 3 days and you're out $500+ cost of repairs.

As a rule keep your costs as variable as you can and you can ride the waves

 

But he qualified for a new truck?

 

So true. Any amount over variable cost will cover some of the fixed cost and be beneficial to the individual owner operator. Of course, this leads to the o/o taking cheap freight causing lower freight rates for all.

 

Probably fine, depends on what his loads pay, and if hes busy. Our industry pays about2.25 per miles, 3000 to 3500 miles per week, thats 7200 about, so after op cost he would have about 1200 left the week he makes his payme