Need some opinions!
 

Just like everyone else I don't want to work for the man, I want to be the man.
My plan is to be a company driver for a couple years, as I'm doing that I will be learning by experience and asking you truckers for advice. I want to learn as much as I can in those 2 years.
After the 2 years I will buy my own truck, drive it myself. Once it is paid off I will drive it it for another year, saving up money. So, after the 3rd year I will buy another truck and put someone in it. Possibly put someone in my 1st truck so if a driver needs or wants some time off I can get in either truck so both trucks are making me money.
The last thought in my mind is to buy a truck after I get the previous one paid off or as finances allow.

There is my business plan lol. Any thoughts or advice, both positive and negative are welcome.

Easier said then done. Good luck to you. Trucking is a ruff business. Profits are very slim. Most O/Os stay O/Os. only very few own more then 1 truck and make it.

This week I had revenue of $800 and spent $3300...........I need to buy more trucks and hire some drivers and I will make more money right?

How is that???

I know it does sound pretty easy lol. I also know it won't be, I figure if I am going to struggle and be stressed out it might as well be cause I'm trying make something of myself not something for someone else. In the end I would like to have a contract with the U.S. Mail.

Advice Number One: DON’T DO IT! The odds are against you being successful in your endeavor. Statistically, all you’re going to do is bankrupt yourself and ruin any credit rating you might have in the process. Far more folks fail in this business than succeed.

Advice Number Two: Since you are unlikely to listen to Advice Number One, at least make sure you do everything with cash. Absolutely no credit, at least not in the first couple years, and that includes factoring loads (assuming you plan on running under you own Authority). Only spend the bare minimum on everything and put every penny you can into savings for a rainy day. Also, learn to do as much as possible yourself. There are people on here that would disagree with me, but I just don’t see where there is enough margin in trucking these days to pay bookkeepers, permit folks, dispatchers, etc. The only thing I outsource is my actually tax filings. The only maintenance I farm out is lubes when I’m on the road and anything else that is so involved that there’s a chance I might screw it up. I buy oil by the 55 gallon drum, filters by the case and tires from a local shop that gives me very good deals. I don’t spend money on the road in truckstops either. A lot of drivers eat two or more meals a day in the truckstops and that can equal several hundred dollars a week. Basically, I live like I’m making no money and I’m broke, even though I’m doing just fine. When I run cost analyses, I overestimate my expenses and underestimate my revenue intentionally. That always leaves a little financial wiggle room in case (as it usually does) something goes wrong.

Advice Number Two will cause you to grow slowly. You will have a hard time adding trucks doing it from your pocket. I figure I need $20k in the bank in operating expenses for every truck I add. Once you deliver a load, it might take five or six weeks to get paid for it (sometimes longer… I had a customer go nearly nine months on almost $35k), so for each truck you run, you need cash for six weeks of fuel, money to pay your driver for at least four weeks, as well as some cash on hand for maintenance. There’s plenty of guys on here that don’t do what I’m suggesting, but they are adding expense (a factoring company) and risk to their operation. I’ve been in situations where I didn’t get paid when I was supposed and I don’t ever want to risk doing that to someone else.

Musicman- You are not the first one to tell me not to buy a truck lol. But the rest of your advice is more what I was looking for lol. What do you drive and is there a reason you drive it? Maintenence is one of my biggest concerns. I am also considering a lease option, what's your opinion on that?

wiley.. first off listen to music man.

second you can forget about the us mail contract. i know it better then most, i was a company driver for one of the biggest in fl and one time biggest in ny and nj. they need to see money in your bank account, PERFECT credit, not a hint of a problem on your back round check. IF you do get a contract it'll prob be a crappy one that will not last long and not pay well. there used to be a clause that if they terminate the contract you'll get what the contract was worth. WRONG they just keep taking runs away untill you have to forfit the contract.

you want to know how the above poster made $800 but spent $3300? simple. fuel, breakdowns, maintenance, tolls, tags, insurance etc.

i was down for 2 days because of a $28 sensor. not only down but i got a $919 bill for said sensor, labor and 2 tires. just this week i put a new air to air in my truck. $768 for the part. $143 for the labor.. oh and freightliner wanted 4-6 hours @ $126 an hour. went to the local cat dealer they had it done in a hour and a half and i needed 2 clamps. i run off the rail doing containers (which i HATE) and i do pretty well. some might think its nothing but i live pretty comfterable. i average about $1500 a week. thats after fuel. this all comes out of my check: plates, ifta, insuances, escrow, and some other things that i cant remeber right nwo.. but.. i work and work hard at it. my highest check in one week was $2600 and i'm home every night. by jan. or feb. i'll be under my own authority and i HOPE to be doubling that $2600 clear a week. will it happen? i dont know but i'm sure as hell going to try. worst case is i go back to the rail..

my sugestion.. stay far away from this business as you can. once your in its almost impossible to get out.

I’ve got a 2006 Pete 387. The reason I have it is because I had a 2003 Pete 387 that was stolen in February 2008.

I bought the 03’ in June 2005 through a company lease – purchase (which I don’t recommend). I ended up leaving that company just six months after starting the lease purchase and showed up with a cashier’s check for the balance of the truck the day I told them I was leaving. Needless to say, they were not only surprised, but angry because they, like most companies that offer a lease purchase program see it as a way to make you slave. They figured I was stuck… I’d either have to stay and put up with their bullchit or leave and they’d get to keep the truck to lease out again to some other sucker. They figured wrong.

When the ‘03 was stolen, I opted for the same make and model because I had just spent three years learning all the peculiarities of the 387. I do most of my own maintenance work so it was a no-brainer to stick with what I knew. The one thing I did do this time was make sure I got the more fuel efficient ISX. My fuel economy with the new truck is nearly 20% better than it was with my old C15, and that’s even with hauling much heavier loads.

The one thing I don’t like about Peterbilt is that dealerships are few and far between and only a couple offer 24/7 operations. It seems like there are several times more Freightliner dealerships and many of those are 24/7 or at least open late. It is the one factor that might sway me to buy a Freightliner for my next truck.

To get back to the question of doing a lease/purchase on a truck… NEVER, EVER get involved in one with a carrier. This topic has been covered in-depth on this board, so I won’t spend too much time on it here. Let’s just say that it is a form of 21st Century slavery. Some carriers (CR England, for example) have abused folks so badly with their leases that they have had class action lawsuits filed against them.

Here’s a link to the OOIDA page detailing the saga with CR England:
News, OOIDA Court Actions

CR England isn’t the only company that has abused lease contracts. Such behavior is more the norm and not exception.

These days, anyone with cash is allowed into the former “dealer only” equipment auctions. You can show up with $15k and buy a truck you’d pay $25k for on a truck lot or $50k in total payments in a lease purchase program.

Want to make money and drive your own truck? First buy as much truck as you can afford, no older than 300,000 miles, pay at least half down. Lease on to a good, reputable company that can keep you busy and has a significant amount of coast to coast freight, then find a woman who can put up with you in confined quarters 24/7 and can keep you reasonably happy. Then teach woman to drive, pay to run her through a school then get here hired. Sell your home, put the cash in the bank (you'll likely need it), put your stuff in storage. Take this good woman of yours (who now knows how to drive) and run 5,500+ miles week for 6 years or so, replacing the truck 2 or 3 times. Be frugal, then you can retire to Mexico if you want, or keep working your ass off. Do it any other way, and you'll just be "barely be making a living" ... maybe.

A company driver in a similar team operation is the ideal way. Let "the man" deal with the deprecation and break-down costs, while you make your guaranteed amount as long as you want to work. The running under your own authority? Only a very small handful can find themselves in the right place at the right time to make that work without significant available working capital in the first 3 years. Try finding out just how cut-throat this business is and how many "independents" think they can run brokered freight for 90 cents a mile to the truck. Try finding a good, dependable driver who you have to rely on, not being able to offer benefits, and see how that goes. Try answering the phone at 5:00pm to find your driver is stuck in an inspection station in Virginia, red-tagged, with four mechanical violations and 2 bad tires.

Oil leak $750..............Trailer tires $1600..................New muffler $200..........airline for turbo $86.........Filled fuel tanks $700

Had my return load cancel and already had appointments set up for repair and tires so deadheaded home 350 miles. I got $200 for truck not used. I decided it already was a bad week by Tuesday so I just stayed home the rest of the week. This week has to be better.

Just think if I had another truck I could have doubled my losses, or maybe made enough to pay for the loss on the other truck. Not a game I want to play anytime soon.

This is the best solution for the vast majority of folks out there. Unless you’re a workaholic like me and have a hard time putting up with other’s stupidity, being a company driver is definitely the way to go. That being said, having run under my own authority for over three years now, I really can’t see myself ever having another “job” again. What I do now provides me with a good income and a hobby at the same time. I get to set my hours and decide where I will go, when I’ll go and what I’ll haul. As cut-throat as this business is, I’m averaging $1.88 loaded ($1.77 for all miles driven) on 96k actual miles so far this year, and I’m home nearly as much as I’m on the road… and that’s in the worst economy in my lifetime. Granted, I’ve been lucky in finding a couple good brokers who put a premium on service, but most of it is a lot of hard work and a lot of hard learned knowledge.

Not to be unfriendly, but wtf does that have to do with truck driving? Looks like SPAM to me. Just a way to get his or her link on the board.

Must not be to good of a computer tech! jus sayin'

Yes, a company driver is the way I want to start. If I'm comfortable, or keep hearing how bad it is to own a truck I'll stay there. If I keep being unhappy with my employer, then I'd weight all options and what advice I hear and have just heard and go from there.

Owning a truck is not that bad. When you OWN and Drive the same truck. When you get into more then 1 truck thats when things get hard. REAL HARD

Read Tracer. He has own truck and trailer and new gadgets every week. He makes so much he can't wait to spend it. This has been going on for years. Blows a hole in your conventional business plan.

Steve Booth had no exp. and is doing quite well. He just paid cash for a house and 40 acres. Even Pepe is still in business.

Yes, there are exceptions and I count myself as one of them. I did many things “they” say you shouldn’t do and I’m doing just fine, but that doesn’t negate the fact that there is a huge failure rate for owner operators. Leading somebody to believe that because a few CAD board members have done well they will surely do the same is irresponsible. I love math and the statistics indicate that unless the O/O candidate possesses some qualities that the failing majority does not, he will eventually find himself out of money, credit and business.

I just stumbled across an interesting site where the author conducted a multi-year survey of O/O and lease/purchase programs. The data isn't surprising to anybody who's been in the business for very long, but it is interesting reading.

Here's the link: Trucking Company Lease Purchase Programs for Owner Operators

You can buy his audio books for $37, download his ebooks for $17, or just read the same (probably more extensive) information for free on CAD. :)

I bought my truck with no driving experience and doing very well with my own authority.

Truck is paid for and like last week I said heck with it on Tuesday and spent $3300 and it didn't hurt too bad. I have confirmations for this week that total $4200 on 2150 miles. I will be home 3 nights and back home for the weekend.

I wouldn't even think about buying your own truck unless you have your finances at home under control and alot of cash in the bank for the unexpected.

I came up behind a truck this afternoon doing 20pmh on I-80 by Morris IL. He was burning it down, smoking so bad you couldn't see and I could smell it when I passed him. He was a O/O and I was thinking I hope he has the money in the bank for a turbo and maybe more by the time he stopped.

I am glad to see that you plan to drive for a couple of years before jumping into truck ownership. Too many jump into ownerhip without giving much thought about planning for contingencies. There have been a few who have come into the business without experience who have made things work out. That is a very small group. One person that was mentioned bought a truck with no experience and was able to make things work, but he had a lot of cash put back. I believe he stated at one point that he spent about $80,000 to get started. It is much less costly to learn the business as a company driver while you learn the business and save your money. It doesn't need to cost $80,000 to get started.

I prefer having as little debt as possible. If you plan to lease your truck to a carrier you will need less money than if you want to run your own authority. We have discussed the cost of ownership on a number of occasions. You can do a search to find some of what has been posted that will give you an idea of what you need to get started. I would encourage you to save your money and pay cash for your first truck. If you only saved $200/week for 2 years you would have enought to buy a decent truck and not have any payments. If you put $300/week back then you would be able to pay cash for a good truck and have cash for a good maintenance account.

Over the next couple of years you have a great opportunity to learn and save. It is also an excellent opportunity to begin looking at trucks and do some planning. When I am thinking about buying another piece of equipment, I spend a lot of time looking at trucks and/or trailers. When you have the cash, you can often get a much better deal on equipment.

I would not be in too much of a hurry to buy more than one truck that you drive yourself. You can make money with a single truck. Many people find that they make less with more trucks than with a single truck where they drive it themselves. Good luck.

I think I was the one that bought a 80k truck lol

I think he means Booth

I didn't know Booth bought a house, just land.

Wow! That's impressive! And what dealer is that? I assume you are in NJ?

i'm in pa. i went to Cleveland brothers. a few people i see here complained about them but i have not one gripe about them at all. this is the one off exit 77 on i81 behind the speedco. its the second time i've used them. first time was for a pm and overhead run. it came to $364 with cat oil, all cat filters and a fuel filter. the mechanic tim there is top notch. a no bs guy either. gave him a $20 tip and he also did a free boost leak test. the air to air came to $143 to have it installed. another great thing is mon-thurs they're open 24 hours for service. i recomend them.

Good deal! Thanks! It's in my running area, and i'm most certainly going to pay them a visit!

House is being built or it's a pre fab. Not 100 % sure.

I hear it is gonna be built sometime in the future. I know where, too! :) I'm gonna TP it when he's out of town and let my dog turd all over his lawn!

Just an update. I am getting my start with Schneider. It's a Midwest Regional, 5 on 2 off at 36cpm. I have heard good and bad things about them but I'm sure that goes with every company!

Yeah! Well good luck, i believe it's a good company for starters. (no personal experience with them).