Another question about owning a truck and not driving

Josh what do you mean less expense? Please clarify. Thanks.

 

You wouldn't be paying $700/month for insurance for one thing, you'd only have to pay for bobtail and physical damage (if you want it). Some of them will pay for your plates too.

 

I have owned trucks for many years. I have also dealt with a lot of drivers. This is a business where you can lose your shirt very quickly. Even with a good driver it will be difficult to turn a fair profit with a single truck. If you want to get into truck ownership and not drive you need to plan on buying at least 2 or 3 trucks. There just not enough money to go around with a single truck. I would suggest that you drive the truck yourself for at least a year or two before putting a driver in it.

Good drivers are difficult to find. I have experienced both. A good driver can make you money. A bad one can break you. Some will sell your fuel and destroy your equipment. I could tell you some real horror stories, as could anyone who has had to deal with trucks and drivers. It is unfortunate that we have so many dishonest drivers in this business. A major difference in this business and others is that your investment is going down the highway where you cannot see what is going on. You must rely on that driver to be honest and do his job. It is great when things go as planned, but not so much if they don't. If you get your authority, you will need to either find loads yourself or hire a dispatch service or individual to find loads for your truck.

Another consideration is the cost of doing business until the money comes back from the brokers or shippers. Of course, you can factor your receivables, but that take some of the profit. A truck will burn between 100-120 gallons of fuel a day with normal running. That is money that you will need to front yourself. At $3/gallon that is a minimum of $300/day just for fuel. Fuel and labor are the two most expensive costs of running a truck.

If you are looking for a good investment you would do much better by buying real estate or stocks or perhaps a mutual fund. The return is likely to be greater and you can at least keep an eye on your investment.

If you can drive the truck yourself you can make a good living with a single truck. You might get lucky having a driver in one truck, but I always try to plan for the worst scenario when it comes to business. Another consideration are the current rates and condition of the economy. The economy has been off for the last couple of years. The result has been a lot of casualties in this industry. Rates are down as is the availability of freight. Unless you keep a driver busy he is not likely to stay with you very long.

You can work the loadboards and keep your truck busy. You will find good and poor paying loads whether you deal with brokers or direct with shippers. Finding better paying loads will take time and effort. You can pay up to about 10% or more for a dispatch service to keep your truck running.

It is good that you have business experience, but this business is different that most others, especially when you run your own authority. I have owned other companies over the years, but this is one of the most challenging. It is one of the most regulated industries in the country. There is little leeway when it comes to compliance. It isn't that I want to discourage you from buying a truck, but if you are buying a single truck for investment purposes, it is a bad investment. It is an investment that depreciates from the first day. I would encourage you to talk to others who have owned trucks for a few years and get input. It is a very unforgiving business.

 

Wow! I'm am now coming to realize that money is the root of all evil. I pay for my own insurance, plates, fuel, driver, repairs, and even toll fees and my brother charges me 10% after all that. Dam!!!

 

Yes it is because you work for % of gross freight....at Swift, JB hunt, etc... you wont be making % of gross freight plus there are other loopholes in big carrier companies that might drive you into the ground like their lease options.....trust me I have 2 owners that used to be leased with bigger carriers wont name who....and now that they work with me for 2 yrs they say they make double per month than with that other bigger carrier company.....they constantly bringing me gifts for holidays thanking me for hiring them. Now I am not saying every big carrier company is horrible and every little company is a blessing...I am sure there are plenty of O/O who work for a big carrier and turn nice profit but you gotta learn more about this business or you going to be eaten alive no matter what carrier you work for or even under your own authority.

 

Yes we do pull reefers from West coast to east coast....but back to west coast its mainly dry LTL freight that we consolidate...And you do have to help out your family and friends, I was brought up into this world in that matter....if you don't help ur family and friends than who do you got left???

 

Yes, you can make a good amount of money with a driver, but even more as a driver. I advise you to go for it especially if you have those type of funds ($65k) backing you up. I'm doing it with $40k start up amount. My friend has two trucks already with two drivers and he had no starting amount. So yes it can be done. Just take your time and research as much as you can. As for the load boards, the money is their, but not always. Sometimes will be more profitable than others just like anything else. Some guys will tell you to stay away from the trucking industry, but I don't advise anyone with that type of money to do so. It's all about minimizing your overhead as much as possible and that's exactly what you are doing by going out and buying a cheaper good used truck and trailer and still have a good amount left over.

Go for it!!!!!!!!!!!!!!!!!!!

 

He's making less per mile on percentage now than he would getting paid by the mile with one of the big carriers.

 

So you want him to provide deposit slips or something? $10k for a coast to coast trip and back sounds pretty fair to me, maybe even a little low, that's about $1.70/mile.