How are O/O making a living at $1.00 a mile

And there you have way higher maintenance costs, still paying the same for the usual fixed costs, that's a good money making deal, lol. I just for out of one of those trucks, the owner made $200 profit for the whole year last year, up, that's a winner plan right there. Yes that's company wages, AFTER I have paid all my bills on my truck., let's see your company driver buy a 2 year old truck in new condition making that$1200 a week, lol.

 

Can't speak for him but can answer this how it applies to me.

Ifta: picked up by my carrier. It comes out of their 25%. Same for various states ton mile taxes such as new Mexico oregon Kentucky and ny.

Taxes: income taxes vary way to much from person to person so its pointless to talk about or compare. The number that works best for comparison is taxable income, and even that doesn't work well because we all have different deductions.

Tags: mine was real close to 1400 for the entire year for tags and permits when i renewed in March. For exact figure id have to dig out the paperwork and i just can't be bothered with that at this moment.

Insurance: bobtail and physical damage on truck and trafficker is all i need to carry. An even 150 bucks per month. Of course physical damage is based off value of equipment so this would carry from truck to truck and trailer to trailer. There is also occ/acc which many states require contractors to have, and even if its not required its stipid not to have. A simple slip and bust your ### on an icy parking lot can lead to tens of thousands in medical bills and lost income while you heal up. Cost will vary state to state of your business location but 2 to 3 hundred per month is probably a good average.

 

None of those costs are good excuses for running at a $1 a mile plus surcharge company. A good 2 months running will cover those costs easily and that's being generous. Taxes and Insurance are the bigger ones. The other stuff is peanuts.

 

The check I get cut is mine. We have a fuel card and my carrier covers ifta. My fuel gets deducted out of my percentage before I get my settlement. With the exception of every once in a while I will fuel with my business card when I'm in an area that doesn't have a station we get a discount at and I am fueling at a mom and pop. I cover bobtail insurance and tag. Which I cut a check at renewal time. Insurance and tag cost me around 4k total for a year.

I'm responsible for taxes. Not to worried about that this year as I will be writing the purchase of the truck off (paid cash for it) and all the other deductions. Should have enough revenue by the first of next year to cut the government a check quarterly.

 

Higher maintenance? Are you smoking crack? Every truck is going to cost about the same as for as general maintenance such as tires/ oil changes/brakes. The wear out items. The long lasting items that eventually wear out such as engine suspension and drive train components will start needing attention around a million miles. But they don't go all at once. And when you get real rates, and not this ridiculous buck a mile crap, the money is always there when they do break. unless you are some boneheaded instant gratification fool that can't save money a repair is noting but am inconvenience.

Examples of big ticket major component repairs:
basic inframe on a 12.7 our n14 cummins 6500 out the door at most independent shops or do it yourself over an extended weekend for under 3k. Add in New waterpump oil pump injectors and heads for another 3 to 4k and you got yourself a completely rebuilt like new engine for about 10k dollars that goes another 10 years and never needs touched.

Transmission. Rebuilt for 2500 another 600ish for a new clutch, pilot bearing, clutch brake. Add 6 to 8 hundred for labor.

Rear ends. 5k is more than enough to rebuild both.

How much is the typical lease purchase weekly payment? 750? Doesn't take a lot of them to more than cover any repair cost am older truck is going to have. And with the older starter truck once you spend that money that component didn't need touched again for ten years, while the lp truck keeps making high weekly payments.


The argument can be made that a newer truck is preferable for some guys. The argument can not be made that a high weekly payment while running a buck a mile freight is preferable.

Enjoy your buck a mile freight. Just got a call from my sales agent that the customer i worked for all last week was awarded more work from the army corps of engineers so ill be heading back south early in the morning and will be make more before lunch than your buck a mile freight pays you all week.

 

Not possible! I make between $1.00- $1.50 per mile driving a company auto transport. I'm a car hauler. It's a sad story out there for want to be O/O these days. The biggest mistake drivers are doing is buying into this crap that you can lease a truck from them and make a good living at it . The reason that they do this to begin with is so they can take the heat off of themselves and put it on somebody else . For every mile you drive they make money too but now they don't have to take care of the problems associated with that rig. You do!

 

Ditto me too! Hate going over 2100 miles and hate being away from home over 2 weeks!

 

I don't hate out, this is what I like doing, if you like sitting at home then I'm happy for you, I like the otr lifestyle..no I don't take care of the problems with the truck, the warranty does. I take care of the general maintenance items and the apu. It's really sad that some of you have to bash someone just because they don't do things your way. My payment btw isn't that high and I am all in at around $150 a week for elog, all insurance, including the cargo insurance I hadn't seen you mention, tags and all taxes, the rest is truck payment, and various accounts of which I get any money in them and a completion bonus account with a company match I get when the contract is paid out.
The o/o I was just working for was shelling out 3800 a month or so to keep his ten year old trucks on the road and that's not including repairs but does include a trailer lease. Repairs on those trucks were killing him and he will tell you buying an older truck isn't always or even mostly profitable you accuse me of smoking crack when you say it doesn't cost any more to keep a million plus mile truck on the road than it does a newer one under warranty, I'm not the one smoking crack son. When I pay this truck off I will still have over a years worth of warranty covering the engine plus the money I bring from the lease accounts which gives me plenty of time to decide if I want too rebuild and keep this truck or take the money for a down payment and this truck fora trade in and buy another. And here is something else too piss in your wheaties, if I do buy another, I will probably go to this companies used truck lot they have and buy another 386 of another color besides black.

 

This is like watching someone tailgate a loaded dump truck. You know what's going to happen, but you just can't look away.

 

Paid 48 k for mine runs good plain jane but my break even point 670 miles at 1.75 a mile!