Starting a fleet

Curious what happened to give you such a doom and gloom outlook when it comes to owning trucks. Every time someone asks about getting into the industry it’s always the same answer. Lots of people are successful and most small fleet owners started with one truck. The OP is trying to create an additional revenue stream, he’s not talking about quitting his job right now and going all in on trucks. For as long as I remember everyone has been saying it’s a bad time to buy a truck. “Rates are in the tank, I wouldn’t buy one now” “Fuel is high, I wouldn’t buy one now” “Equipment cost too much, I wouldn’t buy one now” How many people started and succeeded over the last 40 years since deregulation when it “wasn’t a good time to buy a truck”?

 

I'm not here to tell you to do it or not to do it, I just have a few questions

How many hours a week do you work in the oilfield and is it a set schedule not being on call? If your working 70-80+ hours a week how are you going to do anything related to your business? Sleep is a wonderful thing and that's something you'll be lacking when a driver calls with an issue after just falling asleep a hour ago with you having to wake up for the oilfield job 5 hours from now. If your day job is driving we all know how bad it is being sleep deprived and a good chance it's hazmat being oilfield related

Do you know a good shop that has more than just part changers that won't rape you? Because working full time you will not have the time to dick around with the trucks. Don't expect your drivers to tell you a problem in advance before it becomes a bigger problem, they won't, they're gonna hold the wheel and hopefully get your freight there in one piece.

The ELEPHANT in the room. How are you going to book loads and deal with brokers. Please don't say hire a dispatch service because you won't do very good with them. All they care about is getting their money and could care less if you make any. This right here if you don't have steady contract freight takes up way way way more time than a company driver actually realizes.

You'll be making and receiving a #### load of calls like/ Broker calls in the middle of the night asking why your drivers now late (that he didn't bother calling you for). You calling on dozens of loads trying to line up work for 3 trucks. And not just one load at a time, when your driver's empty you better have a reload for him , make him sit constantly and sooner or later you'll have a big payment doubling as a lawn ornament.

What made you choose reefer? How much are you paying your drivers for detention, you're gonna have lots and lots of it........and that's always a good time trying to get paid for it. Insurance will cost more also and so will any freight claims

How are you planning on paying your help? If you don't offer insurance you better pay quite a bit more than the companies that do offer insurance otherwise you'll end up with the last chance reject drivers that'll kill you anyways.

That's just off the top of my head.

300k. If you're dead set on doing this I'd keep 100k stashed away

Edit
If you're gonna do this, put your all into it. That means giving up your oilfield gig. Unless your the 1% that has a 40hr week in the oilfield your probably run ragged at the end of the week. Even if you only have a 40hr/wk job most everyone important that will try and get a hold of you works banker hours while your busy and can't dedicate 100% of your attention to them.

 

Send me the 300k, I'll take half and send the rest back to you. Then you'll be 150k ahead of where you'll be in a year if you try this.

 

I'll tell you why. I got started for a SHRED of what these people face today. With sky high interest rates in the 80's, it wasn't the best time either, but, I, like most, didn't listen, and went for it,,COLD QUARTER! I was always a company driver that should have REMAINED a company driver, but no, I had a stiffy on getting my own, and failed miserably. I was totally unprepared for what truck ownership involved and I see a recurring theme with these people. I've said before, yes, you can make it today in trucking, but rarely "just starting out". This person is describing a recipe for failure and why I read, the failure rate for a new O/O is almost 90%!!! There was a time, when you had an extra truck, you could easily find work,,AND a driver for it. Why anyone would do that today, is either a dreamer or grossly misinformed. I read also, in the 1st 3/4's of 2019, more than 800 carriers went belly up, DOUBLE that of 2018, mostly because of the "megas" cutting rates. Still think it's a good time to get into trucking?

 

So basically you want everyone to be a company driver forever?

 

Spend six months learning how to to trade options on the stock market. Load that account with 200k and play with 25k at a time. WITH A TIGHT STOP LOSS. The risk is far less than betting it on a truck and driver. If you buy at the right time, right day, right etf/stock. 25k can become 35k, 50k, 100k in a day or less. Ignore this, or learn…up to you!

and you can set that tight stop loss at -$500 or whatever you want, and if that position gets there it’ll automatically sell your position. That results in you allowing a little buffer room to lose while keeping the possibility of good gains without worrying too much

 

Are you sure?
Is it 10% of the actual freight volume, 10% of the capacity, or 10% of the carrier count?

Then we have a small carrier and a small carrier. 300 trucks, 100 trucks and even 25 trucks are still megas compared to 1 or 3 truck and trailer carriers.

 

As far as the original question of this thread...
Dealers are sold out. You only can buy new equipment from a speculator.
$300 000 buys 1 new truck and 1 new van trailer today. Or maybe 2 used trucks with one used 10 year old reefer ...
In other words, the op's business plan needs financing of $1 million, not $300 000.

 

And I can say the opposite. My dad bought a brand new Freightliner in 1980 and we moved in to a new house that year also. Your experience isn’t everyone’s experience. Most people that come here and ask the question probably already have their mind made up and people on the Internet aren’t going to talk them out of it.

 

I didn't listen, why should they. Look, this is an informational site, meaning, people come here because they are looking for answers on something they may or may not be familiar with. Today, in our society, nobody wants to hear the bad stuff, sunshine and smiles. Well, I'm the guy who is telling them, in a cordial way, it's NOT all sunshine and smiles, and I'm only giving them information they probably don't want to hear, living on "Lollypop Lane". I have no personal gain by telling these people the "other side" of it, I figure, if I help ONE person steer clear of what I consider a losing proposition today, I've done my job here. An industry that boasts a 90% failure rate isn't exactly a good idea, and what many people don't understand, is a driver isn't going to have the smarts or the responsibility that the truck owner has, and the anxiety of wondering if your driver is plowing into stopped traffic, or sitting at a truckstop waiting for a headlight change, it's something a truck owner has to live with and can devastate one for years, while the ex-driver goes into selling insurance, or whatever. You still want to have your own truck(s), by all means, the vultures are literally waiting for you.
And yes, with all the regulations being FORCED on our O/O's, you couldn't convince me for a second, it's the plan to get rid of the O/O's by over regulating them, I'm telling you from both sides, it's a lot better to park the truck on a Friday ( with a list of problems) and have a nice weekend with your family. It was for me.