Some numbers for new O/O

I don't think anybody claimed 40-50% discount, I know I didn't. I started with Gordon driving a 2013 Cascadia. With the way it was spec'd out and the very basic interior, that truck would have retailed for around 100k in 2013. Figure if Gordon bought 200 at a time with a 20% discount that's $80k each. Run them for three years and then sell them at their own dealership for around $60k. That's how they did things for many years.

 

Why do many people come on this site looking for free handouts?

 

Jesus, who forged the signature on your high school deploma? This is a forum, dude. People come here to exchange useful information, tips and tricks to HELP one another with things.

 

So post your numbers?

 

They are not called black helicopters anymore. They are called drones or UAV- unmanned aerial vehicle

 

Post your numbers- this is a FORUM dude.

 

I worked at a company that did just that and really prospered. They'd buy up a small 30-50 trucks operation every 3 years or so. They'd keep the book of business and retain some drivers, then sell all of the other companies equipment and property. It was just another way they grew their business. Nationwide Express out of Shelbyville, TN been in business since 1981 and still trucking strong. I saw them buy at least 3 other trucking companies like that in my 11 years there and they never kept any of the equipment, they were only interested in the customers.

 

I am not saying that a customer base is not valuable, but it is rare for that to be the only reason a company is bought.

Most companies turn over all their trucks every few years anyway. Selling off some properties is also common, if there are two yards close together, why keep them both?

You said that some drivers were maintained. Solid, multi-year drivers are valuable assets, even if they are not owned assets.

Crete has bought several companies over the years. Sunflower, Shaffer, Hunt. From what I have pieced together, the company retained useful yard facilities, drivers, and some office staff from every purchase.

I think that is a more typical example of how trucking companies merge.

It is DANGEROUS to buy a company with the expectation that you can count on retaining all of that company's customers beyond the end of the current service contract. There should be some other reason to buy, something more concrete than contracts that might not get renewed.

 

To think otherwise is counter-intuitive. Does it make any sense that someone buying 1,000 trucks at a time will pay the same as a guy buying 1 truck?

The manufacturers compete for their business, so the prices will be much mor competitive than what you will pay.

 

The price I said was when trucks were much cheaper, so the discount was closer to about 20%, which is close to what one would expect the value to depreciate in 2 to 3 years.