New owner operator

Discussion in 'Ask An Owner Operator' started by NewEraTruckingllc, Feb 2, 2023.

  1. NewEraTruckingllc

    NewEraTruckingllc Bobtail Member

    Feb 2, 2023

    I am seeking some advice. I got everything I need started and I am about to put 32k down on a truck and I'm getting cold feet. I'm starting to believe I won't be able to get any loads being a new DOT. Also been thinking we are going into/ already in a recession, and I feel like the market will get even worse which will make it even harder for me to start. any advice would be helpful from people that have made this journey.

    Thank You,
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  3. Siinman

    Siinman Road Train Member

    Mar 5, 2017
    Kansas City, MO.
    You are right that we are in a recession and most likely will be still going down till the end of this year maybe next year. If you have a good job now it might be worth waiting it out. On the other hand if you get in now and can make it after this year you will most likely be fine.

    Do you have a business plan? What truck and trailer are you planning on running? I assume you are gonna run on load board freight based on your outlook. See who you can sign up with and if they have the freight to make it the first 2-3 months. Home Much money will you have left after putting the 32K down and do you have a trailer already bought or planning on renting?
    ducnut and Vampire Thank this.
  4. DUNE-T

    DUNE-T Road Train Member

    May 10, 2015
    Detroit, MI
    Start in May at least, not right now. Freight will be better and truck prices will be down more
    Oxbow Thanks this.
  5. NewEraTruckingllc

    NewEraTruckingllc Bobtail Member

    Feb 2, 2023

    It will be a 2018 Cascadia with half a million miles on it and I was planning on renting. The truck is from a Freightliner dealer and I'm getting a 2 year 200k warranty that's good at any freightliner dealer. I will have like 15k after to try to make it on. I really don't want to use factoring company they seem like a scam for more money. yes i was going to use load board. I will definitely ask some people I've been talking to about freight to last a few months.
    Siinman Thanks this.
  6. gokiddogo

    gokiddogo Road Train Member

    Mar 5, 2012
    Ontario Canada
    Pretty skinny with 15k
    You are still going to have to put out money for plates insurance 2290, a myriad of things. Do you have access to capital easily and at a fair rate? If you aren't using factoring and if your average days to collect is even only 30, how much fuel money are you burning through while waiting to be paid? Are your credit cards paid off, and have a high available balance should the need to spend money for repair, could be a tire, could be something you don't have time to fight with freightliner for 3 weeks if you are under load vs paying for oh let's say an egr cooler that is failing but not enough for them to warranty but is going to cause more issues if not resolved so do you bite the bullet and pony up I don't know, $2500? The monthly payment for insurance, truck payment if you have one, trailer rent, load board fee, etc are all coming around quick and like a wrecking ball if you aren't ready. You should look into a discount fuel card, it is your easiest way to cut down your fuel expense.

    Some quick math
    15,000 at 5.00 is 3000 g at 6 mpg is 18000 miles. If you run about 100,000 a year you have enough money for fuel for about 2 months. This isn't accounting at all for those fixed costs coming around monthly. Without access to more startup money you are leaving yourself quite short. I agree on avoiding factoring and quick pay, if you can. Quick pay you can use or not use at any time without contract is a much better solution than factoring. I still would strongly advise you either save some more unless you have open credit and are willing to risk it if you blow through all of it then the engine goes and now you have no asset anyone will buy and you have no earning power to pay the big debts now incurred other than driving a company truck even if you're making 2000 a week it will be difficult.
    Siinman Thanks this.
  7. Beaver9

    Beaver9 Heavy Load Member

    Jun 15, 2020
    Everyone wants to pay cheap prices even though everything went up.
    My trailer was damaged three times in two years. Not even a month passed this year when they hit the wall when unloading again.

    The damage is about 8K this time. And there is shortage for parts too. People don't want to admit fault too. So, you sometimes end up paying for damages yourself if you don't want your insurance to skyrocket.
    I don't advise anyone to take this journey now unless you want to spend away money every month being able to accept losses or even losing everything you put down.
  8. NewEraTruckingllc

    NewEraTruckingllc Bobtail Member

    Feb 2, 2023
    great advice and things to definitely consider. Those are things I don’t worry about as a company driver obviously. I actually have a family that would help me if I needed more money but I don’t want to involve them and make my burden theirs if my company was starting to go belly up. I really appreciate the advice you provided. Thank you!
    Siinman and gokiddogo Thank this.
  9. NewEraTruckingllc

    NewEraTruckingllc Bobtail Member

    Feb 2, 2023
    Yes and im afraid of losing everything I put down. Im thinking it’s not the right time with the market. Yeah that’s not good with the trailer:/ I was starting this because I just moved from cali to florida so I wanted to start my business venture since I have the experience.
  10. NYStarcar

    NYStarcar Light Load Member

    Oct 6, 2020
    In a van down by the river
    If you don't already have customers lined up I'd say don't bother. Planning on getting good money freight constantly from loadboards isn't really a business plan, more like wishful thinking.
    NewEraTruckingllc Thanks this.
  11. Ridgeline

    Ridgeline Road Train Member

    Dec 18, 2011
    Hold off, get more money in the bank, you should have $30k left over. Get the truck checked as I have posted in the past, Dyno/Blowby, etc. ... and get a good solid business plan.
    Siinman and NewEraTruckingllc Thank this.
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