Main Reasons for High Initial Failure Rates

I can chime in a little. I’m in a high density freight area which is great for freight and overall volume and rates. Downside, there are a lot of companies competing for the same driver pool. Another perk is there are a lot of service type companies to do whatever work you need though.

If I had my choice I’d take my chances on having a hard time finding drivers but have lots of loads to choose from. I’m outside the city in the more suburb area yet still only 30 mins from down town. So, point being close to everything but we don’t have to worry about fencing our property or getting things stolen.

 

The hard part is building on th 7 k, while paying for normal maintenance. For years, I’ve averaged .10 cpm total, Truck and Trailer, last year, less than .07 cpm. This year will be significantly higher, as I have a lot of big repairs to do, and need tires. But doing everything as you go along, is hard. Making it very hard to put away extra. Ideally, putting aside, a set amount, works on paper. Until another big repair crops up, before the maintenance fund can recover from the last repair. Every time you turn around it’s something. If not mechanical, ins, hut, plates, fuel taxes. It all adds up. Most O/O figure, I’ll just run an extra load. Lol.That never works, All costs must be figured, and the variables, averaged, with worse case scenarios vs risks you’re willing to take.Cant control everything, too many variables.

 

now again that's where the big mistake is you don't start with the five to seven thousand and you're already starting in the hole and maintenance show once you have the five to seven thousand on the side with your down payment that is when should sign the paperwork and find the truck you want...
again the biggest mistake and I've cited it before and I'll say it again you would be surprised how many so-called owner-operators were not talking about fleece purchase drivers owner operators that do not know their own cost per mile to run that truck..

 

I don’t believe in putting money down on any vehicle, and only the very minimum on a house. If interest rates were high, it would be different. Buying things at the right price,no more than the loan value. Keeping the down pymt in my pocket. I’ve never put a dn pymt on a vehicle. That includes, 3 Trucks, 2 trailers, a dozen cars over the years, and 4 houses only minimum, 5 % or less. Better that way. Wether you succeed or not. Keep the money, once it’s gone, it’s gone. That strategy goes against all so called sound advice. But if a person waits till they save up x amount, sometimes it will never happen. Saving up for a big dn pymt on a house, is usually a waste of time, as the prices go up, normally. End result is the same.

 

either through off lease purchase.
or one of those kind of foreign places like Compass Lease.. how do you know if Eastern European don't truck dealerships that you see around..
having plenty of collateral like a house if you lose the truck they take your house..
Lotsa Rent A Foreigner places have no money down you're going to get burned but if you want to learn how to get burned and experience it and go for it.
just go to Craigslist find somebody to page on a 1099 to treat you as a subcontractor..
there's lots of ways to get one but there's also a lots of ways to fail.

 

My first Truck in 96,was a $1 buyout lease. Approx 12 % interest, $1000 a mo 48 mo. After 1 yr. per lease stipulations, I refinanced it with Chase bank at 8 or 9 %, $1200 for 30 mo. simply because I didn’t trust the leasing company. He was a small Guy, an invester who worked with the used Truck dealer. The guy was legit, but I wasn’t sure, as the lease terms were very vague, Literally an auto lease agreement, copied. Lol. Second Truck, in 2001 Was 72 k $1732 for 54 mo. Dealer cut Me a check for old Truck, for $16 k. Exactly the amount my 4 mo. Off from back surgery cost me a year earlier. I used it to pay off debt incurred. 1 yr later refinanced it, at Chase 6% 60?k $1699 a mo. for 36 mo. As I don’t believe in financing any vehicle more than 4 yrs. Third and current Truck, In 2008, Paid $30 k financed with Chrysler financial,$1000 for 36 mo.about 10 % interest maybe. Also purchased a trailer with it for $5k cash, that I didn’t need, It was a package only deal, $35k. I took the trailer to auction, and sold it for 13k. Net cost of current Truck was $22k, Never once put down a dime. All of the Trucks were under market value, compared to other Trucks. I’m done buying Trucks, If I did I’d spend $50 k max.and sell my current one for $25k, and pay something else off and buy a boat. I’m not saying any of it’s the right way to do things, I’ve done a lot of juggling, but that’s how I’ve done it. Always made a better living overall, than if I’d stayed a Company Driver. That’s all I ever expected. A decent paycheck. Since all the good jobs disappeared 30+ yrs ago. If I weren’t a Truckdriver, I’d never get into this bussiness. Not the best bussiness to be in.Unless it’s what you enjoy doing.

 

Experience has nothing to do with it. I just got shut down with less than a days notice from my company. I am an experienced driver.

 

This is the best reply I have seen and you are spot on Ridgeline.

 

Really? Was it the LME or whatever or another smaller one we hadn’t heard about?

Experience and a good track record means you can go back to work in a good job next week if you want to though.