Reefer vs. Drop / Dry Van

Discussion in 'Ask An Owner Operator' started by kcgore, Dec 11, 2021.

  1. kcgore

    kcgore Bobtail Member

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    I’m an owner operator with my own authority out of California. The 1st carrier is out of El Paso that has contracts with paccar and water heater companies, which is mostly drop/hook dry. They will pay some where between 75% to 85% plus 100% fuel surcharge

    The 2nd carrier is also a contract agreement out of California, but is more flexible of where I want to go and hometime. I will be paying a trailer rental fee of 1800 dollars a month and they will pay 94%

    Please give me your insight and opinions, so can make the right decision
     
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  3. goga

    goga Heavy Load Member

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    If trailer rent is over 1200, I'd consider buying one and paying less for my own.

    PS: It is not a hard math, just figure out what you are going to make A DAY with those two options and make you mind up yourself.
     
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  4. kcgore

    kcgore Bobtail Member

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    I know reefers are more expensive per month and the trailer is newer. He said I can buy it after a year
     
  5. bad-luck

    bad-luck Road Train Member

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    $1800 a month trailer rental is insane! I am guessing that it is so high because they are only charging 6%, but it is still too much. The other one in my opinion is to low of a percentage. My advice to you is to buy your own trailer.
     
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  6. goga

    goga Heavy Load Member

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    Wait a year and rent for such amount is kissing over 20 grand "goodbuy".
     
  7. kcgore

    kcgore Bobtail Member

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    Thank you. Buying my own trailer is part of the plan, they said I can buy the trailer after a year
     
  8. abyliks

    abyliks Road Train Member

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    rent/lease is a 100% expense not just depreciation though… and you can turn it back in if you decide pulling it/the company isn’t a right fit, also their problem when the unit breaks down
     
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  9. goga

    goga Heavy Load Member

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    Wize reply, not everyone is thinking this way! I'm renting myself, even though tires on me, it is not much within a mean while (I got so fancy and spoiled with it, that installed Centramatics on a while ago, just for the heck of it and to save some rubber), and yes, I can just drop it off any time and get something else, if in case would get tired pulling the same thing all the time.

    PS: was going to buy one, but was a bit late to the task, as trailers are double the price from 6 months ago. It will take me 5 years to just catch up with rent if buying a used one alone.
     
    Last edited: Dec 11, 2021
  10. bad-luck

    bad-luck Road Train Member

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    I understand that, but your renting a trailer for $1,800 a month, that comes out to $21,600 for a 12 month rental. Unless he is deducting the $21,600 from the sale price after 12 months, it is not a good deal.
     
  11. bad-luck

    bad-luck Road Train Member

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    I understand that, but your renting a trailer for $1,800 a month, that comes out to $21,600 for a 12 month rental. Unless he is deducting the $21,600 from the sale price after 12 months, it is not a good deal.
     
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