Average rates for O/O

I don’t run 3500 miles a month never mind a week, and the truck can sit for $2.50 a mile.

you’ll never see a dime back out of it

 

Rates are good right now in 6 months they could be in the tank. Did he save your life in the war? Do you owe him something unreasonable? Are you a millionaire and can afford to lose 50k or 100k+? Let him get his own truck. Right now a truck is worth a lot. 500k miles truck worth 75k. 2 years ago same amount of miles on a truck it would cost $30k.

Plus he thinks in miles, rather than how much to clear a day vs wear and tear on the equipment.

 

When a man with experience meets a man with money ...
The man with the experience gets the money and the man with the money gets the experience

 

When I was starting I had nothing in my account. And banks didn't give me any money by saying it's a risky business. My wife got some credit and we started from nothing. I'm still here. The truck and trailer almost paid off after two years. My first year was good. Not much breaking... low repair costs but high insurance! My second year, lower insurance costs, high repair costs. But I'm still floating.
For it to work, one must be a good accountant and have a great business plan, other person needs to know about mechanics just a bit and know what are you buying. With prices for the equipment so high right now, this is even waayyy harder than two years ago.
Before you do anything you need to get insurance. If it's in his name or yours, your friend's dream can end right here...So, start with insurance costs... He might just end it before he even started...
It's not to say I didn't risk anything. When you plunge, you either float or sink. Good luck!

 

Here's an idea, have him call triangle equipment financing and see if they will finance him. They will require 20% down, 48 months longest term and truck is collateral. But I know they work with poor credit because I have poor credit (650, something in collections, some late payments). If he doesn't have the down payment, and you are determined to help your friend, perhaps loan him just the down-payment about 15k on a 70k$ truck. Then have him sign and notarized a separate agreement where he pays you an agreed upon monthly amount. At least that way if he crash and burns, you are 10 to 15k, not 70k and your credit ruined. Also if that doesn't work out, triangle will tell u EXACTLY what you need to do to get approved credit wise if you don't qualify. And if you truly want to send him on his own tell him still call triangle, but save up the down payment and some cash reserve for the expenses after.
Also have him look into leasing. Yes leasing into ownership is typically a bad idea but if you do your research it can work very well.
Good luck and remember this what my dad once told me.
Always put number 1 first. (Number 1 is you. ) lol

 

it's been said he's in the company driver mentality still. Running 3500mi a week as an owner op isn't a smart move. He's chasing miles not money

He needs to completely change his mind set.

 

Man makes 4-5 grand worry free a month as a driver, decided he wants to buy a truck, lease it to.. Landstar? or Mercer?, make same 4-5 grand a month, but with stress and heart attack endangerment at the moment truck stops in the middle of nowhere while loaded and with no money on the account... I think he deserves a try)

 

We started with nothing. And then the Pandemic hit!
We survived. But it must have been in God's hands. Because I'm surely blessed it didn't collapse. Odds were NOT in my favor...

 

Everyone is telling you no. Im not going to say otherwise. I m just going to say thats your decision. I have seen this played out both ways. (successfully and a disaster)
I will say 3500 miles is to high an amount to depend on. 2000 is more realistic. Yes many will tell you they do it, but thats to amny eggs in one basket. Also wouldnt depend on that rate either. At least not for ALL miles.
Lastly if i was going to do this for a friend. I would demand a few things.
1 lease onto a company who will give him a fuel card.
2 No more than $500 a week cash advance.
3 you open a checking account and settlements have to be direct deposited there. Plus you keep the debit card.

 

Cash advances are the devil. The quickest way to become discouraged is to look at you weekly settlements and be $500-1000 under what you 'expected'. Even being "just a driver" for a company, I almost never took an advance. Once I figured out that each one made it more likely I'd need another, I stopped taking them altogether. I've got over 10yrs without an advance now.