Debating in getting my own tractor.

Discussion in 'Ask An Owner Operator' started by jgarciajr40, Dec 12, 2021.

  1. jgarciajr40

    jgarciajr40 Medium Load Member

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    I’m a company driver have been for about a decade now; I currently gross around 80k as a W2 employee and have been debating if I should get my feet wet into the O/O world.

    I currently have about 48,000 cash, but owe about 120 on my home. I plan on paying my home before getting a tractor so I’d be walking in with little to no debt. Only debt I have is my home. So once that’s done my only financial obligations would be minimal necessities outside of the truck.

    could someone help me run some hypothetical numbers, or show me how they calculate their revenue and expenses?

    how do you calculate the actually profit on the truck for the week? I can figure a basic rudimentary expensive like say…

    A load traveling 2000 miles
    diesel cost $4 a gallon
    and the tractor does 5.5mpg
    ———-
    363 gallons of diesel costing $1432

    how do you calculate insurance, taxes, etcetera into your rate
     
    blairandgretchen Thanks this.
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  3. mjv2744

    mjv2744 Bobtail Member

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    Well so take the insurance and divide by all miles. So if you drive 50000 miles in the year there is approx 50cpm for insurance or 25cpm if you do 100k, maintenance approx figure 25cpm. Now of the miles you drive how many were paid? Misc 5000 a year taxes 5000 a year for a good starting point.
    You also need to look at the equipment what is the useable lifespan?
    If you use 1000000 miles take equipment cost of say 300k which is reasonable assumption for new these days (truck and trailer) 30cpm. Finance cost depends on your credit. Replacement equipment prudent to have reserve for down payment etc. self employment taxes 15.2% depending on how structured. Insurance (health) will vary. Parking will vary.
     
    pittscotrucking Thanks this.
  4. pittscotrucking

    pittscotrucking Bobtail Member

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    Take your insurance costs, and all expenses and divide on expected miles per month to get your rate per mile.
     
  5. Opus

    Opus Road Train Member

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    Honestly, right now is not the time to buy.
    Keep working on your numbers and look again in about 6 months.
     
    Pamela1990 and Diesel Dave Thank this.
  6. pittscotrucking

    pittscotrucking Bobtail Member

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    I agree! The truck prices and dry van trailer prices are astronomical.
     
    Pamela1990 Thanks this.
  7. TallJoe

    TallJoe Road Train Member

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    The numbers are difficult to predict on the revenue side.

    For the cost:
    This year alone I already spent more than $125 000 (fuel, maintenance, parts, fees and taxes) to run 91 000 miles and I don't include my own pay in it.

    So in order of me to match up your net earning as a company driver, I would need about 200 000 in revenue without any profit as a business. If you want a truck replacement fund, you'd need at least 25-30K every year, on the top of it, if you are buying a brand new every 6-7 years.
     
    Last edited: Dec 12, 2021
    Rideandrepair Thanks this.
  8. 401-Alex

    401-Alex Light Load Member

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    @ 3k miles plan on 5 mpg .50c per gl worst case numbers $1500 fuel . Tolls depends on area run Midwest to northeast and back 300 a week. Cpm calculation only works based if you run the miles to do so. If you are an owner operator you don't want to run miles you want shortest for the most. Heavy loads eat more fuel. Everyone wants a light load but if you can scale it and it pays #### good why would you not take it? If it's 45k going 500 miles an $6 a mile #### right I'm taking it. Insurance is based on your location and what you have. New athority is like being a new driver. Experience doesn't matter. That is as long as you have 3 + yrs and a clean record. In the metro of Providence I started at $15,000 a year @ 20% down decided into 9 payments. An owned 05 Volvo 670 tractor and a 2019 van trailer that was financed. Gave me the $# of insurance. A owned company vs a company full of debt is easier. As you can work less and as you like rather than running your ### off because you have to make payments. However current market for truck and trailer is 30k over what is the actual value. Anyone buying in is going to be upsidedown when the market drops. Trucks and trailers will rain from the sky from bankruptcy . I just had a not at hault accident this past weekend total loss for my truck. And debating on how to replace it and if I want to due.to the current market. I have been doing this for almost 4 years now by myself so I have knowledge of what I say and do. I am not dispatched. I am a independent motor carrier.
     
  9. abyliks

    abyliks Road Train Member

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    I have no idea why people want to run miles like that, I barely run 3000 miles a month, start thinking of revenue and not as a vacation
     
  10. jgarciajr40

    jgarciajr40 Medium Load Member

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    I don’t think I’m planning on buying soon. I’ve seen the prices and yes they’re insane. I’d probably start with power loads initially to be honest.
     
    blairandgretchen Thanks this.
  11. ibcalm19

    ibcalm19 Road Train Member

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    I say set yourself up for success. It can be a right time to buy a good used truck & trailer for someone selling for a number of reasons at reasonable cost. New trucks & trailers definitely over priced if you can find them. Can life happen yes? Your health going down which is #1 thing in my book.
    The world is still turning & things still need to be transported. If you’re over head is low & you have a good plan. I say go get it done. We don't know what tomorrow may bring we might as well live our dreams.
    What is the worst that can happen all the freight lanes dry up(not going to happen). You have a bad accident and wreck your truck (hopefully not) you have enough insurance for that. You write a good plan execute it & move forward with it. If all fails go back & start it again if you need to.
    For me I keep a low overhead cover the things that need to be covered. In life there are seasons of plenty & lean. Hopefully I stored enough up for the lean times. Merry Christmas and keep on trucking
     
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