$7800 ca-mi-ca

A nickel per mile, will take 1,000,000 miles to pay for a $50,000 truck.

Is it wrong to think of a truck payment as a per mile thing, like this:
Cost of truck / total miles until payoff = 500,000 (4 years at 125,000) .. ?

Should it not be the cost of your NEXT truck when this one is done it's useful life?
So if you had to buy a new truck at 150k / 500,000 mi = 0.30

The reason I use 500k miles and 4 years is that is a typical warranty of a new truck.

I don't understand why some people seem to calculate this amount low, if your truck lasts longer than your projected lifespan, extra money in your pocket.

 

Exactly, I think all he has figured into his cost is fuel and a small wage for himself. I guess somebody else pays for his taxes, license, maint, tires, insurance and so on.

 

I never use the nickle a mile estimate as figuring to replace the truck. The nickle a mile is to cover major repairs beyond the normal .20 cents per mile i keep for maintenance. I also never figure on buying new equipment so truck replacement costs would vary per driver. Used equipment is fine for me though Glider kits have been crossing my mind alot recently, may have to change my thinking there...lol

 

It's probably a tricked out container - false floor for hiding things - you know.


What about option for partial on the deck and putting freight in empty container on the way back to Kalipornya?

 

Not saying the numbers aren't important but you and your drivers seem to be hung up on just the numbers. It's about the big picture too, what is the freight exactly, where is it at, and who always has it? And that is more than just "good areas versus bad".

 

You misunderstood me then, when I say $500 a day thats after all my expenses come off the top first. But I still won't take a lower rate and justify it because I can potentially run enough miles to make my minimum. I have my minimum rate per mile that I will haul for also. And $1.78 out of California and back won't cut it for me. I'm sure there are guys lined up somewhere to haul for that, but not me, I know better.

 

That's why my feelings are unless you have an interest in figuring out freight what pays, what doesn't and actively network on that you'll always be based on volume and that's not really in the best interest of an owner operator. The flip side of that is if these guys are willing to hand over control of dispatch to someone else they likely haven't learned much in all their experience either.

 

fuel is included in the $1/mile. about 65 cents per mile to be exact. and if you really want to be exact the fuel is actually more per mile on short hauls. "less miles more money" is an empty statement. you have to put the pencil to paper and get out the calculator to determine which load is better.

 

fuel - 0.62/mile
depreciation (repairs/maintenance) - 0.22/mile
insurance - 0.07/mile
everything else - 0.09/mile

I pull my own trailer. truth be told I also pull a fair amount of short haul/high dollar per mile loads, and I wouldn't even think about running 3500 miles a week for $2/mile. all I'm saying is you have to pencil it out and get out the calculator. maybe a more practical example would be you are deciding between a load that pays $2.30/mile that is 1000 miles and a load that pays 2.43/mile that is 700 miles. let's say they are both going to good areas, neither destination is more desirable than the other. Let's say it's Wednesday, now if I can get that 700 mile load off the next day it's probably a no brainer, but if I can't deliver either load til friday morning, then maybe I go for the 1000 mile load. the reason is simple, $1300 net vs. $1001 net in the same time period. Even if you don't agree, can you see my logic here ?