Im curious to know if this sounds like something you guys would take a risk on as we all know any kind of investment is a risk.
I do not have the ability to obtain a full class A cdl due to my age, but my father who lives across the country has a few trucker friends in my area who would be more then willing to help out in the event that my truck is left roadside.
I have the opportunity to purchase a truck and lease it on to a company that has a base roughly 80 miles from my house and the truck would be pretty much local/regional north east region.
I would not be the driver of this truck id hire a driver to operate the truck for me.
The truck would have plates authority and insurance through the company that its leased on to all I would have to be responsible for is my fuel driver expense and truck maintenance.
One of the dispatchers is a friend of my father and claims trucks average between 2k-3k after fuel expense depending on the driver and id pretty much be looking to offer some where in the range of a 50/50 split. I am not looking to live off this truck im more so looking to make an investment and have steady cashflow.
Does this sound worthy of an investment or would I be on a ticking time bomb?
IS THIS A WORTHY INVESTMENT???
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Ticking time bomb. Wait until you're old enough to drive that one truck. There's so many sad sacks and sorry excuses behind the wheel anymore. You can't compete in pay and benefits to get a decent driver.
Thanks for your reply but I figure there must be away to succeed in this. I mean all drivers cant be bad and i figured that a 50% split would motivate the driver to work and also he/she should be able to realize that the truck being down would directly affect his pay.
It's not worth it.
What you are literally getting ready to do is become a Trucking Company rather than driving a truck you own. That means Business. Which means 1099 taxes that will bury you among other requirements as a Company.
I cannot even begin to comprehend if you are not yet 21 and gunning to be a Trucking Company as it were. If I had a million and bought 10 trucks it's gone. Then those 10 trucks will need fuel, tires, drivers which cost thousands each to hire, insure, verify as a employer etc etc etc. 5 million maybe. 10 million would be better. All of that would be gone. If I don't get the right haul price on all those loads. It's disgusting.
Here I this. When you hit 21, you get that CDL and be a good behavior with a decent trainer and a decent company. Someday if you still wanna own a company or one truck you will be able to do so later in life. But not right now.
having good old boys ready to fix a booboo in the new trucks is silly. You need a computer to talk to your truck computers most likely. The days of the old time trucks with a tool box and a mental bag of tricks and duct tape are pretty much over. You are dealing with large truck dealerships and with dedicated truck repair shops who are themselves in it for a living. It's gonna cost you.
I hate to be a rain on your parade. You have a whole life to yourself don't burn it early by flaming out and crashing on something you are not ready for yet.
You should listen to these folks. You'll be spending 75% or more of your 50% fixing what the driver F ups on your truck.
If you were out here on the road and seen what we see you would really understand the truth in this statement.
Too many variables in your plan that are NOT under your direct control. Since you need to hire a driver, everything is going to depend upon the driver's ability to keep the truck earning steadily. If the driver is lazy, he ain't gonna make sure the truck is well maintained or pulling profitable freight, which is in turn going to affect the income of both the driver AND the truck. Also, paying 50% to the driver is very high in your situation.
1) who is paying the fuel?
2) who is paying repair and maintainance costs?
3)who is paying taxes and benefits costs?
Most drivers expect the owner to pay fuel, maintenance and breakdown, and pay on a W2, with the owner/employer paying their share of income taxes, although there arw some who understand how a 1099 independent contractor pay model works.
At the end of the day, the general consensus is that for a singlentruck operation to work as an investment is for the owner of the equipment to also be the operator(driver). To do otherwise lines you up for far too many expenses that YOU could easily control but your employee or contractor may not care about.
50/50 split has been around haven't seen it work very well.It works good for the owner.You buy a tire or other deductions out of settlements escrow,insurance,plates,permits The driver doesn't want to help pay is going to be a problems So 50% of what.A mileage rate should be motivating enough for him to run.
I ran for a O/O of several trucks once or twice. Never mileage but a 25% of whatever the truck makes in the NE that week, usually Baltimore to Hunts Point or Boston Market overnight with soda or fish loads back south. It's crazy.
Some weeks the truck revenue was 2000, fuel was 600, my pay 500, leaving 900 minus a tire... 600... Other weeks you can't win. Money money money money....
I learned things in my early days with that outfit.
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