Buying a truck
 

I'm team driving hauling car parts now and ive decided i want to be an O/O now that i can finally see the math. I drive for a lease driver .. but he's still barely making money but that is frankly.. because he cant control his spending.

I'm curious about how hard it is to get a loan and down payment etc. My CR is 680 right now will go to 700 when i pay some stuff off shortly.. im hoping that will be enough. I have a car worth 10 grand retail right now i can get a loan on or put up for collateral. It should be easy for me to save $3 to 5k.

Ive considered all the options and originallly planned to get a CHEAP truck.. 15-25k. But now that i do the math.. well honestly the truck payment is one of the smallest costs of driving now. Fuel is the biggy. Youre better off buying a brand new truck if it gets 1mpg more than you are a CHEAP CHEAP truck that gets 1mpg less.

My plan is a used prostar or pete 387 (probably prostar) that i can average 6.5-7mpg with with a good transmission and engine. Maybe 500-600k mileage. Im thinking 50k??
I live in nc but am thinking of running for a company that pays its lease driver 1.30ish a mile at the moment WITH fuel surcharge. Id KILL to lease to a company that passed on full surcharge (do those exist now??).
With this particular company i can do 2500 easily leaving monday mornign and getting home friday evening. (I'm about hometime more than anything) or may find better runs up to chicago and back with someone.
I run HARD. I used to run 3100 between sunday night and thursday early am..

My questions are:
1. Is this a good plan
2. Different truck suggestion? NO freightshakers im sick of driving them.
3. Should i spend more or less on a truck.
4. Should i have a mechanic check it out? Are warranties on drivetrain available on used trucks?
5. Should i get my own authority as well to run if freight gets slow etc etc.
6. Where do i get the truck loan from or should i just go to dealers and have them run it.

Any suggestions? Im serious about becoming an o/o. The only thing i never liked about truckign was someone else controllign my life. Now its just getting the finances figured out.

1)It's not a plan yet, it's just a projection....
2)If you are buying a used truck, i would be more concern with the quality, any brand could do....
3)That's a loaded question, too many variation.
4)Of course you should.
5)Makes no sense to me. It's should be one, or another.
6)The best if you could get it from your local bank, your credit is not perfect but could do.

You've said you are driving a team? 2500 miles?
And one other thing, i would not recommend it for less than $1.5 a mile, all miles run leased to a company. $1.3+ barely to break even IMHO.

i agree 100% with above.

and for what its worth... a freightliner will make the same money a international/pete/kw etc. i sugest you buy what the best deal is.

I would not be too concerned with the brand of truck. They all make the same amount of revenue. Most have the same engines and drive trains. You will usually get more for your money with a Freightliner or International. What you want is a reliable truck that you are not going to have to start spending money on right out of the shute. Paying a mechanic to check over a truck before you write a check would be money well spent. Take your time and you can find a good deal. There is no reason to buy a new or nearly new truck, especially starting out. You can buy a good truck in the $20-30,000 range. I would opt for something on the lower end of those figures. It is important to keep your costs and commitments down, especially starting out. One advantage you will have in keeping your monthly payments low is that you could more easily survive if the economy takes another dive. Your credit is marginal but you may find someone who will finance your purchase with a good down payment. You could probably get better terms if you wait until it gets over 700. I would try to find my own financing. A local bank or credit union would be best and likely offer better rates than one of the big equipment lenders. You need to know where you will lease your truck before you buy it. In fact, many lenders will require a letter of intent to lease before making a loan.

Most carriers pass along 100% of the fsc. Do a little research to find a carrier that best meets your personal needs. I would recommend a carrier that is agent based and pays percentage. You should do much better than leasing to a carrier that pays mileage. Unless you pull a van, you may need to either buy or lease a trailer. Most carriers will not want you to have your own authority if you lease to them. If you want to get your authority then I would not lease to a carrier. It is a lot of expense unless you are getting your own freight. If you lease to a carrier with their own direct freight contracts, you might do better during a down economy than if you have your own authority.

Team driving we're doing 5 to 6k between monday midmorning and LATE friday night or early saturday. We could do more but theres a lot of city driving at the ends of the loads. Where we should be running 600 we're running 5. Also the scheduled pickup times screw us.

As far as brand ive driven petes, internationals, etc etc etc and theres a huge quality difference. Freightshakers are just that, theyre loud vibration buckets. They turn great, get good mileage, theyre a cheap workhorse but these are our HOMES lets be honest. We have that other place we visit. Internationals are quieter and ride smoother. Petes are much nicer inside, ride a little quieter and a lot smoother. Its worth 10k over 3 years easily for me to not feel like my bones aare vibrating when i get out of the truck.

I'll listen to you on the 20 to 30k im just worried about inheriting an older trucks problems or problems leasing on. If the engine goes after 20k miles.. im screwed.
Percentage sounds great... honestly one of my biggest problems is companies and o/o's seem to keep their contracts and numbers top secret.
I can raise my credit further i just havent put that much effort into it. It isnt really that i have bad credit it is that i have had no credit.. i dont borrow money. I pay cash. A bad thing these days i guess.

Ive never driven flatbed. Always dry van or bedbugging. Id actually prefer bedbugging but bedbuggers do NOT get home. Is flatbed that much better? i notice most o/o's seem to run flatbed. Heck it might be nice to get a midroof and not worry so often about bridges.

I dont have a family to support though i 'help' my mother and sister and friends. I dont >have< to make 700-1200 a week. ISo if freight dries up as long as i make truck expenses and money to eat im ok. I should even be able to double or triple truck payments in good times.

I understand about authority and frankly i dont want to do that paperwork anyway thanks.

Do i just need to start making phonecalls about runs available and terms for companies? Id LOVE a company that had runs here to wherever and back. I used to be home 3.5 days a week and run 3100 miles a week. As an O/O that would be simply amazing. And i agree on 1.30 a mile its mighty low this is just my first experience actually seeing the figures an o/o or lease driver makes, though i see a lot of bs spewed here.

Thanks everybody id love any other help. and GMAN you are as always amazing man youve done more to help drivers than anyone on any forum etc. Especially me

personally if i was teaming the only 2 brands for me to look at would be freightliner and volvo. but its up to you. granted my columbia isnt made as well as my dad's petei'm hanging out right now, front windshild closed and more then enough room.

My aversion to freightliners isnt about room they have plenty. Its about noise and horrible ride. I LOVE their tight turn radius and they'll haul ass if you have a good engine/tranny. They'll beat you to death though

I was also thinking about becoming an Owner Operator again, that is until I took a hard look at the numbers. First off I would not rule out a Freightliner tractor as I drive one now and I like them (2000 FLD) yes they ride a lot better then International. Peterbilt and Kenworth are all bells and whistles so I would stay away from them in the beginning for expense reasons. Freightliner, International and Volvo are much cheaper alternatives.

The company you looked at is not paying you enough money to make a living. You can expect .92 to .96 cents per mile as your cost of doing business, lets just round that off to a dollar per mile, your costs for truck, Ins etc. So at 1.30 per mile you are earning only 30 cents per mile. Anyone that tells you any different on the numbers has not owned a truck before, theses are real time numbers.

You need to find a company that will pay you at least 2.00 per mile pluse a fuel surcharge, I also suggest getting a program that will tell you the correct fuel surcharge so you dont get burned. I would not run my truck for less than 1.75 on a back haul and 2.00 on a main haul, you can get more if you know where to look. Brokers are all crooks so be aware of that going in and trust no one, they will all lie to you.

Finding a reliable tractor is of most importance for your sake and setting up a repair fund is crucial to your survival in this industry. I would not go with any of the lease deals out there from trucking companies they are all working against the driver and they are too easy for the company to take back your truck before you actually pay it off. Purchase your own truck from a bank loan, credit union or truck leasing facility that has a good reputation.

I would also look at Penske and Ryder trucks as they do sell them after so many years but they are usually in very good shape and should have all reapir histories on each vehicle. They also have a reputation for excellent repair and maintenance standards. Hope some of this info helps, best of luck to you and keep us posted!

We're teaming (makes a huuuuge difference) doing 5k a week and clearing around a grand each a week. We could run more but the routes our company has are kinda screwy... lots of city driving. I agree with your .30 a mile numbers. Im looking for freedom and hometime though. Money is way down the list.

As for trucks - ive driven just about everything and i just cant stand freightshakers.. they deafen you and wear you out. A good international is smooth.. they just have that weird side to side rocking thiid ng. Petes are in a class of their own. I could care less about the fancy cab doodads.. it's the ride and the noise that make me prefer pete/international. Freightliners in my experience turn MUCH better and haul ass... they dont have the pull of a international/pete with a cat c15 but they fly. The only way i would consider a freightliner is if i got a killer deal on it.. Though the new model looks nice. frankly these days with fuel through the roof the truck payment is hardly even a factor comparatively. Youd just about be better off buying a new truck that gets 7-8mpg than an old one you own outright that gets 5.5-6

Youre completel yright about penske. I worked for a company that leased penske trucks. I drove the oldest truck in the fleet and they couldnt pry me out of it. Ran like a top. Plenty of power. great jake. ugly as a dog heh.

My thing looking for companies is trust. I want a company with a lot of routes near/through my town (asheville, nc). Just not willing to be otr and out for weeks anymore. Id rather work for 5 or 10 cents a mile less working for good people than pull down the big paychecks and get screwed. Good companies are hard to find..

I appreciate your confidence. If you plan on running team, I would look for a truck with fewer miles or one that has had work done on the drivetrain. Probably something in the 300,000 mile range. I doubt that you can find a good truck in the price range that I mentioned with only 300,000 miles. A truck with 500,000 miles still has a lot of life left. Running team can put miles on a truck very quickly. You could have almost a million miles on the truck in a couple of years. With fewer miles you will pay a premium on the price. You could start with something with higher miles and decide after a year whether you want to plan on a rebuild or trade for something newer. I like the idea of letting the business pay for itself. Start with an older truck that is in good shape and save some of the profit to buy a newer truck. One key factor to me would be driver comfort. International does have nicely laid out sleepers. Most trucks will ride better with a longer wheelbase. I have driven 379 Pete's that ride about as rough as anything on the road. Once you get one that is around 260" wheelbase or longer, the ride is much better. Volvo is a good team truck. The ride is good and it is probably the most comfortable truck going.

If you only need to make $700-1,200/week, you could stay a company driver and make that much money. If you want more flexibility then you may want to buy a truck. You may not have much control over how you run if you sign on with a company that pays mileage. The main reason is that most pay for all miles, so they can dictate more how and where you run. I would check around for an owner operator only company that pays percentage. Depending on the type of freight you pull, you could lease to a carrier and make $!.70-2.25/mile or more. It will be difficult for you to make much money running for $1.30/mile if that includes the fsc. Most of the reputable carriers pass 100% of the fsc along to the owner of the truck. It is a good question to ask. I receive a national fuel price summary each week. From that I can calculate my fsc.

Flatbed freight can and usually does pay more than vans, but some vans do very well, especially during certain times of the year. The down side to flats is that you will need to tarp in all sorts of weather. You also don't see many flatbedders who run team. I think you have about as many owner operators pulling vans and reefers as flats. It is often difficult to tell if a driver is the owner or a company driver. If you pull a van you won't necessarily need to buy your own trailer. Most flat bed companies require you to have your own trailer and equipment. Some will rent you a trailer, but you will still need to buy about $2.200-2,500 worth of tarps, binders, straps, chains, etc., Some will finance the equipment for you with a down payment.

It looks like you posted this back in September, wish I had been around then, what did you end up doing or are you still looking? We don't sell trucks - thought we list some that have come back to us - but we know financing and truck programs. If you haven't gotten one yet and still have questions give me a shout out.

I guess that's a good plan. About 2 years ago I also planned to buy a used cheap truck but eventually I got a salvage one (Piterbilt) at carfrom.us, it was even cheaper even though I had to do some repairs of course. but it still turned out to be much cheaper than buying a new or even used truck. And yeah, I think you should have a mechanic checked it out and then decide whether you want to buy it or not.

Milage is the one thing scaring me away from the truck I now drive. I guess my boss may retire in a couple of years, so I could get the truck cheap. It's a 2000 T-2000 with 970,000 on it now. It has just a little blow-by, but it's in good condition. 2 years from now it will be 14 years old with a lot of miles. Even so, if I get it cheap enough, I will have money for a new or rebuilt motor.

I know this is an older thread but this is my advice to anyone that is looking into buying a truck or multiple trucks.

First never say never on a truck model for your first truck. Buy the most reliable truck you can get that is the best deal. I do not like freightliners either but we have 3. They are decent dependable trucks and make just as much money as that fancy Pete with less operating costs. You can always upgrade later once you have an established business with a good amount of money saved up (enough money for a down payment, at least 3 months payment, and enough for a major repair of the truck you already have). We started out with one freightliner Columbia and are up to 9 trucks fixing to be ten. We bought all used trucks until the last 3 which are Volvo 670's and 780's. I have 1 western star, 1 Columbia, 1 Century, 1 Coronado, 1 international, 1 KW 660, 2 670's and 1 fixing to be 2 780's. All because of smart truck buying. I like Volvos they are dependable, ride great, safe, excellent fuel mileage and come with a good warranty. We worked up to that at a steady pace.

Second if you finance shop around for financing. Try to do bank financing we are getting a 5.5% rate right now Volvo finances rate would cost us over $200.00 a month extra with their rate.

Third you will not make it in any business starting up thinking you will only work Monday through Friday and that is it. It won't happen and if it does you are not making enough to build your savings you need. You are also going to be paying for someone to repair your truck. I have one day dedicated solely to truck maintanence. Then you have one day to pay the bills or whatnot. Then the other 5 to drive seeming that you only want to drive 5 days a week. This is trucking nothing is steady. There are curveballs thrown everyday. You might not arrive in time to get the next available load and have to wait till the next day. You can have maintanence issues on the road you could have bad weather that slows you down the shipper or receiver could have issues that they can't load or unload your truck. Always expect the unexpected.

Look at how many minimal miles you need a week to survive. You are not going to get 2500-3100 miles a week every week just working 5 days a week. Don't set days off on the road set miles that need to be made then go home. Owning your own business is not easy if it was everyone would do it. It takes hard work and dedication.

Do your research on companies out there to lease to. Recruiters are sales people they are paid to get drivers or owner ops. They will lie to you about average pay and average miles.

I do have more things but this post is already getting too long so I will leave it for another day.

Thanks for all the advice. I'm putting off buying a truck for a while. I was teaming with a lease driver but .. they are screwing him hard to get him out of the truck and i can only suffer for him for so long. There is a produce company hiring here that should get me home 3-5 days a week and on salary (ya i know). Owner seems like a great guy so ill give it a shot. That or foodservice or bedbugging. I want to stay in shape.

Steve Youre absolutely right on trucks and financing.
If you cant make a profit in trucking working 5 days a week your business plan is screwed and you need to find another business. full stop. I could go through a long list of why thhat is true but frankly simply put most trucking companies are too lazy/incompetant to get their drivers home more. Heck there are deliveries for every company ive worked for in my hometown. My codriver worked for a good company that had 2 regular deliveries 15 miles from his house... they never gave it to him. Incompetant morons. He could have been home a LOT.

If you arent calculating maintenance into your permile you're a fool.
If you cant run 2500-3k a week sitting on your thumbs somethigns wrong. I used to run 3200 a week between sunday evening and thursday at 4am and spend 12 hours home on tuesday. The company i just left(may go back solo) has a run they can make dedicated that starts you monday morning/afternoon, gets you home 3 times a week for 10-16 hours and youre done saturday am. This "You have to livei n a truck for months and never get miles and sit in east bum**** all weekend" is bull****.

I appreciate your advice a lot but it sounds like yorue trying to con some newbie into living in your truck and workign for pocket change which seems to be the norm these days.

Yep you hit the nail on the head. You obviously don't know jack about me or owning a truck. My drivers make $60,000+ a year. My drivers usually only work from Monday night to Saturday morning or Tuesday morning to Saturday night. I don't hire newbies either and I only lost one driver last year that begged me to come back. I didnt let him come back because he quit without a notice.

Some weeks click and some weeks don't. That's just the way it is. I can't guarantee my drivers 6,000 miles a week. I can tell them that they will average around 5,000 miles a week for the year. Some weeks more and some weeks less. That's just the way it is. Even the dedicated we have get cut every once in awhile.

Obviously I do know what I am talking about since we started with one truck and are up to nine. Oh sorry I just bought two more so I will be at 11 when I get the other two in. I just think its funny someone who doesn't own one truck tries to tell someone who went from one truck to nine trucks (fixing to be eleven) and one other employee (we run teams) to eighteen full time employees fixing to be twenty two. You just keep on reading there buddy the truth will hit you sooner or later.

Most Freightshakers get that name based on typical fleet specs. When one does due diligence in spec'ing out any truck, even FL, then FL's do not live up to the reputation of being a rattle trap. On mine, I ordered premium noise abatement and premium artic insulation packages. Along with the custom Signature interior, it is a very solid truck that is nice an quiet and a comfort to drive. Now finding a used one that way is indeed a challenge.

Steve3662 i just saw this and i didnt meant to be that insulting. Honestly it's just the bull*** on these boards by negative truckstop cowboys and losers who want people to live in a truck for them free that actually makes me physically angry. As your post pointed out you actually get your drivers home.

WTFTRucks.com im sure id be interested in talking to you a bit in the future. Working for my buddy was a huge mistake. I was going to save the money up for a sizeable down payment on a truck but the last month the money went poof for both of us. (The company's l/p isnt great but mostly it was him)

Copperhead thats the problem the office hacks order company trucks and could give a **** about driver comfort. I have permanent hearing damage from trucking. My buddy drove a new prem freighliner (he leased at lease + .20 a mile for 2 weeks...........) and he said it was as sweet as a peterbilt.

GMAN i think im going to try a l/p (i know i know).. for the freedom not the money. I like knowing i can say "hell no im not driving paper from sc to nyc for .92 a mile" or "screw this im going home" even if it will cost me a small fortune. Im thinking crst landair or dart. If i make 700 a week (after taxes), choose what i do and get home i'm good. Now to be smart enough to choose the company that is the right fit this time (note: never worked for a company i didnt like and who didnt like me to be honest)

You may not even make $500/week if you do a lease purchase. You won't be able to take time off due to the high payments. If you take off a week, then you will need to make twice as much the first week just to break even. You could have times when there would not be a paycheck at all due to the high overhead and low miles.

I understand the times with no paychecks. And i cant sit home a whole week so it's not that. But if i'm in SC friday in the am and burnt out ... i want the choice of losing the money from that day + the fuel and going home. I've seen the boom and bust driving with my buddy. We had $1200 paydays and we had negative paydays. I'm thinking seriously about what you said though. Your advice to buy a truck whatever it takes makes a lot of sense to me and im going to check with a buddy about what i could get for my car. the advantage of lease, especially crst, is i learn more about how to run my truck and i can hopefully save some money. One thing ive noticed is that all of these lease companies make sure you bring in the money at first. I'll check with my buddy tonight.

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