Decisions decisions

Discussion in 'Ask An Owner Operator' started by blacklabel, Jan 11, 2013.

  1. sbaumann14

    sbaumann14 Road Train Member

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    option #1....look into the near future. we may be getting ready for another recession, so save as much money as you can. if we do hit a recession, there'll be plenty of those other trucks around for you to pick from
     
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  3. blacklabel

    blacklabel Heavy Load Member

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  4. blacklabel

    blacklabel Heavy Load Member

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    Option 3....
    Get the Paccar truck, pro a w9 over the 379, and put an apu on it to offset fuel?

    What you think?
     
  5. thelushlarry

    thelushlarry Road Train Member

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    You know the old saying size does not matter?? Would you perfer to look good going down the road with no money in the bank or drive a junky looking truck with money in the bank?
     
  6. snowblind

    snowblind Heavy Load Member

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    buy what you want run as fast as you want haul good freight dont worry bout fuel cost..works for me
     
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  7. Dice1

    Dice1 Road Train Member

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    Not a hard decision to make since trucking is a business and see which truck will make you the most money by costing the least to operate with fuel cost that is the biggest cost to consider.

    Better to make more profit than having alot of shiney chrome.
     
    Oram Thanks this.
  8. blacklabel

    blacklabel Heavy Load Member

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    That my friend is part of the problem, i grew up around all them shiney bullwagons, diesel smoke and chrome

     
  9. Oram

    Oram Medium Load Member

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    Yes. This is business and if you want to mix your hobby in it that is fine, but be ready to pay the price at every mile, good times or bad. The aerodynamic is an issue, does not matter what the ignorant people are saying.
     
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  10. blacklabel

    blacklabel Heavy Load Member

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    Well i know that 1 mpg is roughly $20k per yr. Id be happy if i was getting 6 avg.
     
  11. Steve3662

    Steve3662 Light Load Member

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    We have nine trucks right now fixing to be eleven by April 1st. I will say I am going with all Volvos because of the fuel milage difference. I have ran different trucks hauling the same loads the Volvos some are 780's and some are 670's are getting between 6.4-6.7 mpg hauling doubles. The next truck is an international 4400, a columbia and a century thats getting 6.0mpg. The next is a t660 that is getting 5.7mpg. The next is a freightliner Coronado that is getting 5.5mpg. Then last and the least is the Western Star 4900ex that is getting 5.0. These are all hauling the same loads pulling doubles. The Western Star and the Coronado are set up the same with Detroits and a 13 speed manual. The century and Columbia are set up the same as the Western Star and the Coronado with exception of a 10 speed manual transmission. The T660 has a cummins with a 18 speed transmission. The international has a cummins with a 10 speed. The Volvos have either a 455 or 500 d-13 depending on which model and the 12 speed I shift transmission. I was a big anti autoshift person until I actually drove one for awhile and now I love it. I ran into the same thing with my drivers until they drove one and now they all want it. The argument of I want control over when to shift or whatever is out the window on the I shift because it does have a manual mode to it. You just press a button and it shifts up or down. So that dog don't hunt on an I shift. So lets look at the figures of the exact same loads for a Volvo vs a Western Star with a big hood. I will go with the lowest volvo at 6.4mpg vs the Western Stat at 5.0 mpg. That is a difference in 1.4 mpg. We run at minimum 200,000 miles a year but I will go on a solo figure of 100,000 miles per year vs a difference in 1.4 mpg. So the Volvo at 100,000 miles at 6.4 mpg will use 15,625 gallons of fuel at $4.00 a gallon that is $62,500. The Western Star at 100,000 miles at 5.0mpg will use 20,000 gallons of fuel at $4.00 a gallon that is $80,000 in fuel. That is a $17,500 a year difference. Kinda makes my decision for me being a business.

    As an owner operator you can no longer look at things from just a drivers stand point. You have to look at it as a business. In an industry that profit margins are low $17,500 can break you. Lets say you get that long nosed truck and your fuel bill is $80,000. Where are you going to lease to? How much do they pay? What is the average pay if they pay percentage? Most percentage companies I've seen say somewhere between $1.64-$1.71 to the truck for all miles. You have already used .80cpm in fuel alone. Then you have your standard deductions for plates, insurance, trailer payment if applicable, and so on. Then you have your truck payment of somewhere around $3,000 a month for a new truck at $140,000 and you are lucky enough to find a rate of 5.5% over 5 years. Then you can look at maintanence cost which I will use 10% of your budget for maintenance costs that's $17,100 a year. Then you have to provide into an emergency fund then pay yourself. Boy after all this that $17,500 in fuel savings looks better than that long nosed flat top Pete.
     
    skierzek, Dice1, SPC WHIGHAM and 8 others Thank this.
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