Tell me if this is a good deal for and Ower Operator guys

Gokiddogo no W2 here. I'll be an owner op picking my own freight off the boards on 1099.

 

His factoring company charges him 3.5%. Do I really want to give her $590 a week just to be a secretary and accountant?

 

First off, New England tolls I would avg $300 a week depends where you go. Fuel is about 50 cents a mile cost. So 2500 miles is about $1250.

I would never pay more than maybe 10% a week for someone to dispatch, accounting, factoring. Who files IFTA for you?

Trailer: you’re paying $6500 a year for it. You can buy a brand new dry van for $30,000. You’re monthly payment would be less than a rental and you get to own it at the end and it will be worth a good amount. If you buy a used trailer for $15k you’re miles ahead.

Truck: at your mileage guess of 2500 you’re at $38,000 per year. You can buy a truck for $45k that will run great.

Let’s assume you run 2500 miles a week every week no vacation weeks or holidays. Your weekly bills would total $3,260. That’s a crap ton. That means you need $1.30 a mile just to work for free.

 

It’s more then that. You are a risk to their authority and insurance. What if you get in an accident? What if you get some bad inspections? What if you get a cargo claim? The authority owner has to make money to offset their risk somewhere.

I edited my other post to include: I’m far more worried that he’s your friend then anything else.

 

Your right. I'm definitely clear headed enough to see that point. So what do you think I should go for it? We know each other long enough to where it wouldnt affect our relationship

 

Exactly!!!! This is why I came on here to ask. That overhead number is the exact number I came up with!!!!

 

You’re sick, family vacation, holidays, days off, you literally have to pay hundreds of dollars each day off you take.

 

My overhead with a paid off truck and rented trailer is $296 a week. Yours would be about $1,800. Of you pay his wife by % then you could save $800 right there.

 

Where you running brother?

 

First, pay the wife % so you don’t pay if you don’t earn.

I run Texas to New England and back. I rent a 2015 flatbed for $600/mo. Insurance is $595/mo. Truck is paid off I buy in cash.

Now I know my cost per mile. Yours would be $1.30 for 2500 miles. Mine will be .75 cents a mile.

.50 for fuel
.12 for insurance, trailer
.13 for maintenance