Advice on Purchasing a Truck as a Non Operator

That's great. The only way you're going to get a good driver is if your equipment is taken care of and you pay a truly good wage (not only mileage). Lots of places will play the marketing game and claim to give holidays off with pay but they don't mention it's like 75 dollars for only 5 major holidays. Or they offer health insurance but it's very expensive because they don't pay much in on it. Or paid vacation but fail to mention it's like 500 for a week after two years etc etc.

You're not going to be able to provide what a good driver needs running the spot market. The market is cyclical. When it tanks, you'll have to park the truck or try to continue until you fail because you won't be able to keep it in acceptable condition AND pay everything needed to keep a good driver around.

Everyone is giving it to you straight here. Sorry you find it negative but it's reality.

 

Many companies pay well over 40 - 45 cents a mile for drivers right out of cdl school.
Two off the top of my head are Crete Carriers and Shaffer Trucking. Both start new cdl school grads at .64 cpm then top out at .70 cpm.

 

The fact you didn't realize that post was 100% sarcasm is why everyone is telling you not to do it.
But you've already made your mind up so it's pointless to keep telling you that you will fail and loose all your money. Not might, but will.

 

Who will drive the truck if your cousin fails to perform?

How much is your GL going to cost you with him as the driver on the policy?

Also, when the cycle flips you won't be able to pay a driver because there won't be enough left after expenses. You'll be driving it yourself, parking it or selling it unless you can find a customer willing to lock in on a contracted rate that pays what you need for your goals. That's an extremely tough thing to find as single truck carrier.

 

Stop wasting our time; OP just come back in 6 months and let us know how you made out...

 

Well, eighteenwheels010 looks like you're going to do this no matter what. So, a little advice- Put down at least half the cost of the truck as the down payment when you and your cousin buy it. Here is why in two parts,
(1) in about 6 months into this deal and your cousin stops paying you for the truck payments and your cut. (Remember you said he has bad credit) He will stiff you like all the others he has made a promise to pay on time.
(2) When you take the truck back and sell, it will be a lot better on you if you don't have to cut a check to pay the new buyer to get him to take the truck for less then you owe on it.

 

To start a trucking company you need

1. lots of money to invest in a 3-10 truck fleet all at the same time, so you can go after contracts.

or

2. Start driving yourself and slowly add trucks on the spot market until you have enough trucks to get your own contracts.

or

3. Landstar iis your friend or a similar company but still end up doing step 2.

 

Please keep us informed and let us know how it turns out.