I'm looking at getting back into O/O again. I need some input on my calcs to see if it is worth it? I have been driving since '93. O/O for first 7 years, then went to food service for 15 years and am currently hauling fuel in KC area. M-F night shift off weekends. I put some numbers together based on own authority, $50000 truck on 3 yr note(1500/month), 100k miles/yr, 6.5mpg @$4/gal. Trailer(purchase/lease) was not included in calcs. Long term goal is to run a few trucks. Fixed Costs-Truck,license, ins, auth, permits, tags etc.- 31cpm Fuel-61.5cpm Maintenance fund- 6cpm Actual truck repairs/ tires-10cpm My pay- 70cpm That brings my total to $1.785 pm. I would rather plan for the worst and hope for the best, hence the $4/ gallon fuel cost and 6.5mpg. Any extra would go into Maintenance fund until it reaches 50k. Is this possible while still maintaining my weekends off for the most part and only being out 1-2 nights a week. I want to stay in the KC area(no NE/ screw cali). If my #'s are off please let me know. I can haul anything and I learn quickly. I wont drive junk just to make a buck. i have looked at some of the lease offers and almost choked. I didn't touch loads for under $1/mile in 1994 and wont be doing so now. Thanks for the help.
Then my advice would be to think long and hard about your future. The trucking world has changed a lot and none for the better. What worries me is your mindset is that you think allready about having several trucks and you sitting at home being the bossman. Your present gig looks like a nice deal,whereas being a O/O has many pitfalls. The question you have to ask...................will becoming a O/O improve your life?
Who is going to sit at home? Yes my current deal is good, but no one became a millionaire by sitting waiting for it to happen. Failure to plan is planning to Fail, and unlike many people I have goals that I am willing to work to meet. If O/O is not a possibility then I will find another way, but why not look at the industry that has always paid me well. I understand the difference between a profit and a profit margin and understand that because a million in the bank does not necessarily mean you are a millionaire. Also from where I sit it looks like the pay may soon(5-10 years) be going up big time, as more and more of the current drivers retire. Most truck companies that I know of, that require some type of manual labor, other than holding the wheel, are desperate for employees as the current crop of "potential drivers" is unwilling to do manual labor or be away from home for any time. Just my perspective and I appreciate yours.
My wife and I run team and only clear around 70k per year! Think long and hard about what you want to do! You probably have taxes and health insurance being taken out right now? That is a expense that many would be O/O's forget about and live to regret when the IRS comes calling!
Like i said................look at your situation and decide accordingly. About wages increasing................i would think more in terms off nikkle and dimes then in actual $. The problem is that we are in a world economy now. The powers that be (political and economical) will not let prices rise to much in North America as they will fear becoming to expensive compared to the rest off the world. How long before the USA has a "special" green card off some sorts like the Canadian "Foreign Workers",if their was to be another driver's shortage. I wish you a good future whatever you decide.
Hey bcheffel, Joni Mitchell said it best, "Don't it always seem to go, you don't know what you got 'till it's gone". While O/O for me was the most rewarding part of my career, it was also the hardest. 1st, 50K will get you a decent truck, but it will still need a lot of service down the road, 2nd, you've got 1/4ly taxes that absolutely killed me, road use taxes, acct. fees, ins. will really hit you hard, and FICA, if you so decide.3rd, when I bought my truck, the most any bank would do for me on a used truck was 18 months, unless it's changed, and depreciation on a used truck is limited as well. I don't think wages are going to go up either, as the older drivers retire, they generally demand higher wages and younger drivers will work for less and these companies know that. You can't walk away from the truck on weekends either, there will be oil changes , greasing, tires, it's a lot. Many drivers here would probably kill for a job like you have now, so I say, think long and hard about it. Good luck.
If I had to do it all again, I would probably stick with hauling fuel, even though I had to deal with a lot of idiots running these companies. Hauling fuel @ $72K a year is a good deal. You are keeping hassles down to a minimum. So why fool with going O/O and gaining your own authority. Too many headaches in my estimation. Dealing with many dishonest brokers, meddling Govt regs and a cash intensive sector of trucking to boot. Too many people who have their hands in your pockets, extracting your hard earned $$$. It's the system we have in this country. Buying a decent truck for $50K is a crapshoot in itself. No guarantees there. I know, if you buy a bad one, repairs can eat you alive. It's a good idea to have a nice cash $$$ cushion just in case. $20k plus would be a good number to have, over and above everything else. Opinions will vary on that topic. Yes, I know it's really tempting but our so called freedoms are being eroded to a point where reverting back to a co driver in many respects is a better plan. Hauling fuel is a great business, no doubt and I would def stick with that. Good luck
He'd probably be better off buying a new truck, if he could swing it. I'm sure dealers would love to unload a new 1 year old truck, might get a better loan deal, virtually no unexpected maintenance, could depreciate it over a couple years( although, I'll admit, I never fully understood how that works) and might have a better chance getting on with someone with a new truck. And don't forget resale. If for some reason you want to get out of it, it's almost impossible to sell an older truck. It's like when I wanted to sell my older Harley. I advertised it for months, and couldn't give it away. Everyone was buying new Harley's. Used trucks are no different.
