What am I missing?

If you only average $1.35 a mile over a years time.... Well you probably shouldnt be an O/O

 

Don't roll regional under $2/ mile.

That's financial suicide.

If it's under 150 miles, you better be getting $4 or more unless you have a sure thing same day reload. Even then, $4 is normal on ex short hauls.

I don't know long haul rates but I assume anything less than $2 is stupid unless you are going to come out ahead.

Be smart guys... or go drive a dump truck.

 

No, no, no! You buy fuel where it is cheapest, net of taxes, even if you will owe IFTA. You have an obligation to pay the tax whether you pay it up front or not. So if you save $0.20 on the cost of fuel per gallon, and that is after you've deducted the IFTA. So if you purchase 5,000 gallons, that's $1,000 that you saved. Enough to pay for the $0.749 in Pennsylvania.

 

I still run paper, and I have 0 interest In running anywhere near 120k a year, and I’m not even rolling my hood for $1.35 a mile.

new authority for me was $2317 a month for insurance with a 97 truck and a 2011 trailer doing reefer, always buy a used truck planning on doing a motor, power divider etc, but just keep track of the oil samples whenever you change it, I did a similar thing with buying an older truck cash and rebuilding it but I’m sure it’s a wash to just getting a newer one with a payment, but I wasn’t using an eld or dealing with emissions equipment. I would either go 2000 and down or just buy new and keep flipping them over every ~5 years before the problems start. I just have no interest in payments because I don’t want to work that hard to begin with,

my IFTA is usually a small bill, cheapest FUEL pump price pre taxto whatever area I’m in and fill her up, Buy some fuel in higher ifta states and some in lower ifta states whenever I need it but I do buy a lot in PA and CT

 

I buy the cheapest fuel in the states with the highest fuel tax this works for me. I always get a refund. I don't fuel at big truck stops, and save .40 to .50 per gallon, and I always pay cash for fuel. If you do it your way, that $1000 you save you will owe that and more to IFTA. How do I know that? My friend did it your way, and owed a LOT of money! In actuality you pay at the pump or later.

 

A smart O/O won't even start his truck for $1.35 a mile. And with all due respect, if you are running $1.35 a mile you are part of the problem with cheap freight and won't be in business long.....

Smart! I run

 

Best advice I have heard all day

 

I’d start with a clean sheet of paper and what your expectations of revenue will be. That’s the most important side of the equation.

Then you can look at costs to determine the plan.

 

Getting a bigger refund from IFTA, when you're paying more for the actual cost for diesel is not smart. It is the same as having a lot withheld from your paycheck so you get a bigger refund. Hey, it's your money. You want to give it away for free, be my guest.

I'll fuel at either TA in Hudson, WI or the Petro in Portage and pay $1.822. You're saving $0.40 over that?

 

I am not sure you are following me completely. First, I pay cash for fuel. I looked into a fuel card in the past, but by paying cash and not fueling up at the major truck stops, they still couldn't beat what I was paying for fuel. I do a lot of miles in Pennsylvania now. I fueled up in Pa last night and paid $2.59. A Rutters which is a convenience store/fuel stop in Pa was $3.05 and I know that they were cheaper than a TA or Petro. So that's .46 a gallon savings. I usually purchase 1 tank of fuel a week in Pa. Then fuel up in another state that has cheaper fuel. If you do it right, you can get money back or come really close to only owing a small amount. As I am sure you are aware, if you don't purchase fuel in the states that you operate in then you will owe that state fuel tax at the end of each quarter. So the point I was trying to make for someone just starting out like the OP was, If he or she was to purchase all their fuel in states that have the lowest fuel tax, he or she would be receiving an enormous IFTA fuel tax bill! For someone just starting out that could be business ending. Does this make it a little clearer about what I was trying to say?