Is It Possible ?

[Auggiedoggy]

how realistic is it to expect to make $1000 to $1200 monthly truck payment, and associated costs, and still pay myself $600 to $650 per week? Associated costs being fuel, ins., maintenance fund, taxes, etc. The money that I would pay to myself will stay the same no matter what the truck makes. If I have a good week, then the maintenance fund will get a bigger share. Is this how alot of the o/o do it? Yes I will lease on to a company for now.

[Fredog]

shouldnt be a problem if you get on with a good company I financed my truck short term so my payment is 2400 a month and I take 500 a week salary and it works out fine.
I even have some money left over after all my bills are paid

[Copperhead]

Very realistic if with a good company that has a good customer base. I have a $1335 a month payment on a tractor and even taking out all expenses, maintenance, medical ins, taxes, etc, I take home more than what you are looking at. Even with all my expenses and taxes, and even a purchase of a 55 gallon drum of synthetic motor oil, my net for March was over $4K. But I am set for engine oil for the year. February was a little worse only because I purchased a new desktop computer system and accessories to replace the old system. For a maintenance fund, you might do well to set aside about .08 a mile to the fund. Should be a decent ballpark amount to cover the maintenance barring a major repair right out of the gate. It all depends on the year and condition of the truck you have. What you don't use out of the fund... leave it there for a rainy day. You will need it in reserve. If you can do it, it wouldn't hurt to stash a little more in your rainy day fund.

If you are lean and mean business person who watches the numbers like a hawk, you should do just fine. Things will be a little tight anyway due to the economy now, but if you keep your ducks in a row, when the economy bounces back, you will be in a good position.

[dollarshort]

how realistic is it to expect to make $1000 to $1200 monthly truck payment, and associated costs, and still pay myself $600 to $650 per week? Associated costs being fuel, ins., maintenance fund, taxes, etc. The money that I would pay to myself will stay the same no matter what the truck makes. If I have a good week, then the maintenance fund will get a bigger share. Is this how alot of the o/o do it? Yes I will lease on to a company for now.

Yes, it is possible, but why? When you could make twice that amount of money as a company driver and have NO headaches...i.e. breakdowns, etc.
Remember, paying yourself $600 per week equates to about $450 per week after taxes. If that trips your trigger go for it. For me I would rather let the company take ALL the risk and have ALL the headaches. I will continue to take my $55,000/ year and laugh all the way to the bank while I sit back and listen to all the story tellers saying how they are making the big bucks as a O/O.

[Fredog]

Yes, it is possible, but why? When you could make twice that amount of money as a company driver and have NO headaches...i.e. breakdowns, etc.
Remember, paying yourself $600 per week equates to about $450 per week after taxes. If that trips your trigger go for it. For me I would rather let the company take ALL the risk and have ALL the headaches. I will continue to take my $55,000/ year and laugh all the way to the bank while I sit back and listen to all the story tellers saying how they are making the big bucks as a O/O.

I was doing great as a company driver until things got slow and the boss decided he had enough money and didnt need to pursue any more business.
I will continue to take my $190,000 a year and take all of the risk while I listen to the story tellers say how they are making so much money as a company driver.

[Auggiedoggy]

I guess that I am confused, most of what I hear about trucking and the economy are "Its going to Hell". But from the replys so far, it seems that it is still a doable option. My current job pays me 50+ per year. If you are not happy at what you are doing though is it worth it? Yes I keep a very close eye on expenses. My wife makes good money so I will pay myself less just getting started and , increse my pay as the business grows. I would rather pull a bucket. Pulling a tank would be even better but my experience with that is nil.

[dollarshort]

I was doing great as a company driver until things got slow and the boss decided he had enough money and didnt need to pursue any more business.
I will continue to take my $190,000 a year and take all of the risk while I listen to the story tellers say how they are making so much money as a company driver.

Good for you..Your are one of the lucky ones. Just one question. Out of the $190,000 how much do you put in the bank?

I used to make well over $200,000 a year but after all the bills were paid you could knock off a couple of those zeros.

[Fredog]

Good for you..Your are one of the lucky ones. Just one question. Out of the $190,000 how much do you put in the bank?

I used to make well over $200,000 a year but after all the bills were paid you could knock off a couple of those zeros.

well for last year, I had about 35 left over, so i am happy. my point is that if something works for you, that doesnt make it right for everyone else, the answer to the question he originally answered is yes it is doable, my bottom line is probably close to a company driver but I enjoy this way better, you enjoy that way better, to each his own.

[Graymist]

my net for March was over $4K.

If you don't mind me asking, is this 4k after taking into account what you pay yourself as a driver, or is this 4k actually what you pay yourself ?

[Rev.Vassago]

If you don't mind me asking, is this 4k after taking into account what you pay yourself as a driver, or is this 4k actually what you pay yourself ?

Uh oh. Here comes the "driver wages" debate again.

[Graymist]

Uh oh. Here comes the "driver wages" debate again.

The way I look at it, my dear Rev, and I do believe that you do so too, is that if you're running a trucking business, how can you not include a key cost component like driver's wages into your cost structure ? Only after doing so, can you be in a position to assess how sound your venture is, or if you've simply bought yourself a job. Even though I'm a company driver, every o/o leased to my employer that I've spoken to, pays himself a fair wage, and what he has left after that & after allocating to reserves, does he consider as profit. And this profit is why an o/o is in business for himself, not just for the wages which he can earn as a company driver. For eg, one guy I've spoken to, pays himself CDN$5K every month as wages, and after all his expenses & reserves, banks 4-5k every month as profit.

[dollarshort]

well for last year, I had about 35 left over, so i am happy. my point is that if something works for you, that doesnt make it right for everyone else, the answer to the question he originally answered is yes it is doable, my bottom line is probably close to a company driver but I enjoy this way better, you enjoy that way better, to each his own.

Agreed! I have to say that my equasion is removing 2 zeros from your gross income and doubling what you have left is pretty accurate to letting you know what your net will be.

[GMAN]

how realistic is it to expect to make $1000 to $1200 monthly truck payment, and associated costs, and still pay myself $600 to $650 per week? Associated costs being fuel, ins., maintenance fund, taxes, etc. The money that I would pay to myself will stay the same no matter what the truck makes. If I have a good week, then the maintenance fund will get a bigger share. Is this how alot of the o/o do it? Yes I will lease on to a company for now.

You should be able to pay yourself that amount of money and take care of all expenses unless you have a major breakdown. You may find it very difficult to get much more than that until rates come up. A friend of mine, who is leased to a carrier, grossed about $1,300 last week. He has been doing better most weeks but it has been difficult. Another who is leased to another carrier only made just over $600 after fuel week before last and that was running almost coast to coast. As long as you understand that you may need to live with cheap rates and less available freight then you may make it work. I would still not recommend anyone buy a truck right now unless you have a good cash reserve. There is simply too much uncertainty in the marketplace.

Owner operators run their businesses a variety of ways. Some consider what they have left over after fuel as their profit. Others pay themselves a flat salary and some pay themselves mileage as they would being a company driver. Sticking with a salary is probably the best way to do it since your costs will be more fixed and predictable. The problem may come in if you have several weeks without enough profit to pay yourself a salary. That could create a cash flow problem. In any case, I think you are on the right track in the way you want to set up your business.

[solo379]

I guess that I am confused, most of what I hear about trucking and the economy are "Its going to Hell".

You've heard correct. Do yourself a favor, keep your current job...

For eg, one guy I've spoken to, pays himself CDN$5K every month as wages, and after all his expenses & reserves, banks 4-5k every month as profit.

He is full of it,....or simply using a "truckers math". Unless you are in a very specialized field.

[Jumbo]

You've heard correct. Do yourself a favor, keep your current job...

He is full of it,....or simply using a "truckers math". Unless you are in a very specialized field.

He did say it was CDN$5,000. That comes out to $750 American.

[Graymist]

He is full of it,....or simply using a "truckers math".

Umm, not quite....I've seen his balance sheet & P&L. Besides, he's not the only one with those financial stats.

[Orangetxguy]

Good for you..Your are one of the lucky ones. Just one question. Out of the $190,000 how much do you put in the bank?

I used to make well over $200,000 a year but after all the bills were paid you could knock off a couple of those zeros.

You used to make over $200,000? As a truck driver?

[rigidsporty]

He did say it was CDN$5,000. That comes out to $750 American.

Not according to this...

WikiAnswers - What is 5000 canadian dollars in us dollars

[Scottt]

Not according to this...

WikiAnswers - What is 5000 canadian dollars in us dollars

Almost as funny as a driver I heard on the CB say his heating bill use to be $300 and this year it went up 50% and he was now paying $650.

I asked him if he had trouble with his logbook numbers too......He said no... why?? LOL

[solo379]

Not according to this...

It was a sarcasm. But it was based on real numbers. $750 wages and 4-5 grand profit, sounds reasonable. if you are doing good, and want to count it that way.....