Hello,
I am looking for some insight into buying a truck for someone else to drive. The driver would be my stepdad. He has been a big rig mechanic his whole life. He once owned a very successful truck and trailer repair mechanic shop, and he has been driving for the last 5 years or so since he decided to stop working on trucks full time.
We have been discussing buying a truck for him to drive loads. Him and my mom have all the knowledge of the trucking business, driving, loads, things like that. My husband and I would bring the credit and capital to fund the truck and operating expenses. Obviously, we would be learning a lot along the way. Would probably pay him around 0.55 cents per mile and he would do long hauls like from Florida to California or so.
I see a lot of threads about how this isn’t a good idea. A big area we would be hoping to save $$ in would be the fact that he can fix the truck himself, thus eliminating the cost of labor repairs and just having to buy parts as needed. We definitely wouldn’t be going for a super expensive truck starting out, hopefully would try to stay in the 20 to 30k range.
We also aren’t looking to live off whatever income it would bring in, just hoping that it would provide us some extra cash.
Any feedback is welcome as to if this would be a profitable investment given the situation. We have been wanting to invest our money into something that would bring us a return each month.
Thank you.
Buying truck and hiring a driver
Discussion in 'Ask An Owner Operator' started by Brooke863, Jan 20, 2020.
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P.S. You're not "eliminating the cost of labour"... you're just not paying the mechanic.Midwest Trucker, heyns57, mitmaks and 4 others Thank this. -
Might work, he should be able to inspect a truck for defects and if it is Mechanicaly in good shape, Auctions like Ritchie Brothers, Taylor and Martin, can be a source of trucks that are fixable, deals with family and friends can be a problem though, good luck
mitmaks Thanks this. -
I think what you are reading is that you won’t be able to be self sufficient by buying a truck and hiring a driver. I don’t want to assume but it sounds like this won’t be your primary source of income?
If that is the case, you can buy the equipment and hire a driver and pay off the equipment. There won’t be a lot left but you can do it.
It doesn’t work buying one truck and hiring a driver while using the truck as your primary source of income. -
The market is pretty soft right now and there isn't much profit for most owner operators working alone let alone splitting it with a partner. If you can afford the loss should it not work out it might be worth the gamble, otherwise find another way to make some extra money. Buy some real estate and make him the care taker.
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Either give your Mom and Step Dad the money as a gift or drop the idea completely
I would advise against going into a business with a stranger( yes - in the case of money and business your step dad is a stranger) when one of the party's has no idea about the business.
It is one thing if failure affects a business relationship, it is entirely something different when it will affect an entire family.
Suggest dropping the idea , and watch the reaction of all involved.
Are you willing to accept the risk?Midwest Trucker, heyns57, lester and 4 others Thank this. -
Might work, but you're reliant on his knowledge and ability as you have no relevant experience of your own and he hasn't achieved a very high level if he cant finance his own gig.
As advised earlier, gift it or be prepared to lose friendships and relationships would be my take. -
Cart before the horse ...
So if I hear this right you buy the truck then find the frieght ....that Cali to.florida lane.is tough
I also second not mixing business.and family
If you want to provide capital then do that I bought two very clean 15 cascadias.this year for.30 and 35.k each ....buy one of those charge 25% interest and let them have 100% of.the headaches.imodwells40 Thanks this. -
Oh boy.
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Insurance is going to be very expensive for a newcomer. Can you afford $25,000 a year?
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