Future plans.

Discussion in 'Ask An Owner Operator' started by Road-house, Feb 27, 2021.

  1. Road-house

    Road-house Light Load Member

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    Hello Owner ops, I hope everyone's having a great day. I have a few questions for you guys. I'm a company driver with 8 years experience I'm seriously considering pursuing becoming a owner operator. At my current job I'm making roughly 70,000 a year gross I'm saving 300 to 600 a week to buy a truck. I have two options I'm considering to get me to truck ownership. First is saving the cash and buying a used truck for around 15,000 to 20,000 and putting it to work hauling rock and base locally I know a trucking company who would put me to work and run under there authority. Pros- Home daily, Easy work, 15,000 to 20,000 for a truck I'd have no payments, I have a bunch of contacts in the construction industry. Cons- Seasonal, if I buy a $15,000 to $20,000 dollar truck it will need some wrench turning (I'm mechanically inclined), I don't know any rich rock haulers. 2nd option is hiring on to the company where my buddy bought his truck from. It would be pulling mobile homes. Pros- No money down, Cheap monthly payments, They really helped him on the path to becoming a owner op, Its not a never never plan he paid his truck off in a year. Cons- Rates are either excellent or garbage, Pulling mobile homes (changing tires), You pay a few grand more than what the truck is worth, Runs local half the time and the other half across country, Half the time your dead heading. I would prefer the first option but I also feel like the 2nd option would be a better path because I would be starting with 20,000 in cash reserves. What do you guys think? How much capital should I have before trying to make the leap?
     
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  3. Pittstruck

    Pittstruck Light Load Member

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    Ultimately it’ll be what’s going to make you happy and be comfortable doing. Either way I wouldn’t pursue any option without at least 15,000 sitting in the bank after your truck purchase , but that’s just me, everyone’s different. Like you I’m mechanically inclined but there are times that you won’t be able to fix something, or you will be so worn out that’s it’s just a better option to have the professionals handle it while you rest. And by rest I mean do paperwork and a whole plethora of other tasks you’ll need to take care of.
    Best of luck too you, it was the best decision I’ve made in the industry. I was a company man for 14 years prior.
     
  4. Accidental Trucker

    Accidental Trucker Road Train Member

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    When you have two choices that suck, you need more choices.

    Just keep your eyes peeled, put lots and lots of feelers out, keep looking for something that makes you smile.
     
  5. 77fib77

    77fib77 Road Train Member

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    With mobile homes your doing over sized. It's another skill set.

    How much will you clear a week with either job?

    You buy a cheap truck it's going to require money to be put in it. My first truck. 13,500. Six months maybe a grand in repairs. Next 18 months 30k. Plus down a week a month. Two out three months. You miss 12 weeks of work over, lose 30 k in clear plus paying 30 k to repair.
     
  6. Happily Retired

    Happily Retired Road Train Member

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    I suppose it IS reassuring, seeing people that still want to give 'er a try. I can only go by what I did, and that was 20 years ago, but some things still apply. Quite frankly, I think you're a fool to leave a $70g/year company job, for the uncertainty of an O/O today. For starters, don't feel weird, we all go through this, it's natural, why give it to the boss? I can handle it,,,when in fact, there are so many factors you don't see as a company driver. Insurance, taxes, things you can't repair( $150/hr) these oil moguls overseas hiccup,( or another freeze in Texas) and fuel goes to $5/gal., that comes right off the top. It, today, is an industry too affected by current trends,and regulations prohibit an O/O from making their own decisions and I couldn't imagine running a truck today like that. To make a buck, O/O's had to go an extra hour( or 10) to make it. I was a company driver for 15 years, same thing, just had to do it myself, and I did okay, but back in the 80's and 90's, got into it for a couple grand, failure wasn't such a big deal, unlike today, and heaven forbid if you injure or kill someone, these lawyers START at a million, and can devastate you and loved ones for life. I was glad I did it, got it out of my system, and was lucky I had a classic 359 Pete( avatar) that was easy to sell, but went back to a company job and never regretted it.
    There are times today where an O/O can make it, maybe dad's company, or a well respected specialized haul, but megas have the rates so cut back, the little guy can't make it. Choose well, my friend.
     
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  7. Ridgeline

    Ridgeline Road Train Member

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    If you can’t start with a large cash reserve, then don’t start.
     
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  8. 77fib77

    77fib77 Road Train Member

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    Go ahead and start. You can always go back to being a company driver.

    If you make an extra 1500 a week as an OO compared to company. Then you can hold back 1500 a week. Instead of 300 to 600. But be prepared to lose all 15k, if an engine spins a bearing, ect ..


    If you get 4 months out of it great, than your over the hurdle.
     
    86scotty, Coffey and Road-house Thank this.
  9. Road-house

    Road-house Light Load Member

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    My friend that moves mobile homes chose to only work 8 months out of the last year grossed 125k for the year so I'm going to guess out of that he probably netted 55k to 70k. I have a cousin that hauls aggregate as a owner operator and he usually nets 300 to 1000 a day after all expenses. As far as repairs if I went the route of buying my truck outright I would be stuck with all mechanical expenses incurred. If I went the route of signing on with that mobile home company and buying from them I would have automatic escrow deducted. My friend who pulls mobile homes definently had a rough mechanical year with his truck. There were a few times he didn't have the cash and the company has always been there to help spot him
     
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  10. Road-house

    Road-house Light Load Member

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    How much would you consider to be a large cash reserve?
     
    blairandgretchen Thanks this.
  11. Road-house

    Road-house Light Load Member

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    Honestly If I make the move the main motivator wouldn't be money. I have just decided that after 8 years of working for companies I would rather work for myself. I mean it's the little things like last week having to argue and explain to my boss (who's never driven a truck) on why it's not safe to run on ice. As a company driver you always have to answer to another man. As a company driver i don't have near as much risk because i can just go to another company if it goes bad. But as a C/D I'll always have to answer to another man on my decisions and I honestly just don't want to do that for the rest of my life. If I could have a buisness and pay myself on a liveable salary of 45,000 then I would be a happy camper!! I bet that ole 359 you had was sweet! I see 359's every now and again on the highway those things just scream classic and style!
     
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