Really want my own rig

The sky is falling, the sky is falling!

 

I would wait until after the election to decide to buy or not. Obamba wins - No, Romney wins - Yes.

The only other drag on the recovery is Europe. Those lazy, greedy SOBs around the Mediterranean.

And a possible war looming with Iran. But wars are good for trucking.

 

Where do I start. Ohhhh.

Not a fan of an O/O getting into a new truck. The money saved on 3-year depreciation is almost at the level that you can buy a second truck. Then when you add the interest expense you really could get 2 for 1.

Timing

Now, this has got to be the best time get into this business - leased or independent. The industry is going through the biggest change it has seen since deregulation. And deregulation is minor compared to what has been happening this year. Several years ago companies like LS, Mercer, England and SNI added positions called Carrier Relations. Now many of these companies have whole departments. Several factors driving this.

First is the lack of qualified drivers and more importantly O/O's. So they are having to look outside the company to carriers to help haul freight. And more than just brokering loads. They are entering into contracts with carriers to handle a certain volume of loads.

Second part is the cost of operations. The markets do not want to hear about 3% return on capital. And that is a good number for a company with current costs of equipment. Most aren't even able to see a return. But add to that the increased cost of compliance. The numbers reported are all over the place (leading one analyst to speculate that companies don't even know what it is costing them). But the range is 3-9%.

So why is that all important regarding timing of an O/O? Because carriers are looking for O/O's over company drivers (remember cost of capital) or in terms of being independent you have the opportunity to partner with a large carrier that becomes your sales force (little harder to do as solo but not impossible).

Truck Purchase

You may as well say good luck getting a truck financed PERIOD. Well that is if you are looking at traditional financing. But plenty of hard money sources that will finance even older trucks. Bit harder to do it if you have no O/O experience. But money is becoming a bit easier to get. But better have more than 10% down.

Bond Market

Why do people watch MSNBC and believe the doom and gloom predictions of what is happening in the international bond markets. We are not talking about anything that hasn't been viewed for years now. Smart money is already positioned for what is happening. Where you on here a couple months ago predicting our economy would collapse under the weight of $4 fuel?

Thank heavens leaders in industries around our country are not as pessimistic as so many seem to be in the trucking industry. Because if that happened then we would be in trouble.

And on second thought, fire up the doom and gloom. Less competition for me and my drivers.

 

I care from a personal prospective about who gets elected but my business will grow and prosper regardless. Doing pretty good right now under Obama. Politics in business are a consideration not a driver.

 

Depends what business you're talking about! Trucking, perhaps. MANY other industries, a definite factor.

 

Ethan,i like reading what you post but on this one....................wrong.Sorry.
For a first truck you need one that will get the job done,even if it is butt ugly.
Getting the job done means no breakdowns and gets high MPG.
Once you have your bussiness up and running buying what you want (compared to what you need) can be done.
But not as a first truck.

 

I hear ya, the only truck I think Id ever get that wasn't a hood would be a t600/660 or maybe a freaightliner fld?

Ethan

 

To be quite honest, I don't want to pay for something I don't want. Even if paying for that would get me what I want.

My dad says I'm stubborn, just like him haha.

That's one of the main reasons I haven't done the lease purchase at roehl, I don't want to pay on a Columbia. Ill drive whatever the company gives me, and ill treat it as if its my own, but I would rather save up the money over a few years and then buy what I want rather than finance or lease a truck I have no interest in.

My dad always taught us with hard work and sacrifice comes great reward. So I'm working hard saving money and sacrificing by not buying stuff that would have no actual value such as an Xbox or a big screen TV.

I appreciate all advice I receive on this board and how much you guys and gals have helped me in making important decisions though.

So when i say i do want a hood instead of an Aero truck, please don't take it offensively, I'm just being stubborn haha

Ethan

 

Ethan,i can appreciate a good debate.

FYI i find the 359/379 still the most beautifull truck.(so yes,i do love hoods)

But...........trucking is a bussiness so money does rule.

If you only drive in the Greater Michigan area hauling heavy steel loads,i would say it doesn't matter if you buy a hood or aero.

But if you drive the 48 states OTR,then it does. A lot!!!

 

The nice thing about owning your own truck is that you get to buy what you want. Costs be darned. If getting the most ROI from your business is a concern then you have limited applications that it is the best choice. But few know or care what that is and they just want what they want. And as of today we are still free (CA truckers exempt from that statement).