Money, money, money

[tracer]

Hey, I thought I'd post some TRUE numbers here to give rookies and wannabie o/o an idea... 2004 truck pulling dry van in US and Canada; $1,600 per month for the truck.

Starting from April 2007 till now the income the biweekly deposit fluctuated from $0 to $3,967 (per 2 weeks). Looks like a big payoff on the good side (that's after repairs, fuel, insurance, plates etc.). But from that I had to pay 1600 for the truck, which means I made 47 grand in 20 months but paid 32 grand to the financing company; leaving me ... 15 grand annual income!

No wonder:

- My credit rating is 1 000 000 points
- I sleep in the truck and cannot afford neither a rental apartment or a hotel
- I'm out on the road 25 days in a month
- Revenue Canada is not getting any tax from me

But basically because I spent so much money on the truck - my income is 3 times less that what I made as a company driver driving a BRAND NEW Freightliner Columbia for Challenger Motor Freight last year. Back then I was able to afford a car and spent 2-3-4 days in a nice hotel with a swimming pool every couple of weeks.

So, again - I don't believe in buying used anymore. A buddy who works here at MacKinnon owns a brand new Volvo paying 2400 a month for a capital lease. He pays more for the truck but he pays almost nothing for repairs AND he got the truck he wanted while I keep spending money on the truck to make it more "my own". His average biweekly deposit is around 3500 grand or 7 a month minus 2400. That's still more what I get in the end

Just a sum-up of my personal experience with my FIRST truck - for those who are interested.

[rank]

Hey, I thought I'd post some TRUE numbers here to give rookies and wannabie o/o an idea... 2004 truck pulling dry van in US and Canada; $1,600 per month for the truck.

Starting from April 2007 till now the income the biweekly deposit fluctuated from $0 to $3,967 (per 2 weeks). Looks like a big payoff on the good side (that's after repairs, fuel, insurance, plates etc.). But from that I had to pay 1600 for the truck, which means I made 47 grand in 20 months but paid 32 grand to the financing company; leaving me ... 15 grand annual income!

No wonder:

- My credit rating is 1 000 000 points
- I sleep in the truck and cannot afford neither a rental apartment or a hotel
- I'm out on the road 25 days in a month
- Revenue Canada is not getting any tax from me

But basically because I spent so much money on the truck - my income is 3 times less that what I made as a company driver driving a BRAND NEW Freightliner Columbia for Challenger Motor Freight last year. Back then I was able to afford a car and spent 2-3-4 days in a nice hotel with a swimming pool every couple of weeks.

So, again - I don't believe in buying used anymore. A buddy who works here at MacKinnon owns a brand new Volvo paying 2400 a month for a capital lease. He pays more for the truck but he pays almost nothing for repairs AND he got the truck he wanted while I keep spending money on the truck to make it more "my own". His average biweekly deposit is around 3500 grand or 7 a month minus 2400. That's still more what I get in the end

Just a sum-up of my personal experience with my FIRST truck - for those who are interested.

If your credit is that bad, you likely wouldn't have got good lease terms anyway. So comparing yourself to your buddy isn't apples to apples.

How long is your loan?
How long is your buddy's lease and what it his residual value? You know alot of lessees right now owe more on their trucks than their worth right?

[mike3fan]

Why not concetrate on the rates you are recieving instead of the money you are spending?

With proper buisness practices you can have almost anything you want,including a nice truck and time off also.

[allan5oh]

Tracer how much money are you spending on maintenance?

I had a very rough first year. I was living at home, bought a used truck, and had quite a few repairs the first year.

The big one was the engine rebuild after 6 months. 13k later. Wiped out my entire savings.

Here's the big thing, I was living with my parents! There's no way I could've made it with a family, or a house payment.

But now that I look back at it, and look at the situation I'm in now, I would NOT have done it any other way!

Right now the truck is paid off, is reliable as hell, I do all my own work. Great fuel mileage(7.5 mpg US lately) and maintenance costs are low. My net is around 85 CPM after all costs.

PS... I have a few very good suggestions for you. I'll get to those later.

[tracer]

If your credit is that bad, you likely wouldn't have got good lease terms anyway.

My credit is pretty good, actually. 9.75% a year is what GE Capital charges on USED TRUCKS, while it's only 5% to 7% on NEW TRUCKS. It has nothing to do with my credit rating.

[tracer]

Tracer how much money are you spending on maintenance?

Too much, but mostly it's not on maintenance but fixing things I didn't like - e.g. making steering 'normal'.

I had a very rough first year. I was living at home, bought a used truck, and had quite a few repairs the first year.

I think I'm also at a point where I have fixed everything pretty much the way I want it. I still have that irritating ticking/tapping noise in the engine but CAT says it's not serious.

Right now the truck is paid off, is reliable as hell, I do all my own work. Great fuel mileage(7.5 mpg US lately) and maintenance costs are low. My net is around 85 CPM after all costs.

I hope I'll arrive at the same juncture sooner or later ... where the truck can MAKE me money instead of using up my money.

I have a few very good suggestions for you. I'll get to those later.

I am glad to hear any constructive suggestions. Thanks allan5oh

[allan5oh]

tracer you also have to consider your friend o/o will be paying for his truck for 5-7 years. His maintenance will pile up, tires, etc.. He's just having the best time for the first year. There will be issues. Not everything is covered by warranty.

How long before your truck is paid off? You also have to consider fuel mileage, etc..

[tracer]

How long before your truck is paid off?

My contract is for 42 months. The truck will be paid off in ... let me see ... November 2010.

[Orangetxguy]

How long before your truck is paid off?

My contract is for 42 months. The truck will be paid off in ... let me see ... November 2010.

My truck will be paid off in 10 months. 2001 IH9400 Eagle