Quote:
Originally Posted by no_worries
GMAN, I think we agree for the most part. However, even is somebody commits their own money it's still borrowing, just from yourself. A proper business plan takes that into consideration. I do agree that everyone's operating costs will differ, although I don't think that they differ to the degree that many people think. Someone that starts with a 3 year old truck is certainly going to have a lower payment than someone who buys new. But what will the difference in maintenance costs be? In addition, the person buying new will recoup some of that difference in terms of depreciation write-off. And third, all things being equal, the newer truck will always have a higher value. So while there appears to be a significant difference at the outset, there are several mitigating factors in actuality. And again, the business plan comes into play. If someone that pulls a dryvan spends as much on equipment as a heavy-hauler then that's poor business planning. The rates will never justify the expenditure.
No worries, unless you get into major expenses, there should be little difference in a new or older truck in basic maintenance costs providing the older truck has been properly maintained. Tires, oil changes, etc., will cost the same whether the truck is new or used. There are some maintenance issues that might need to be addressed such as king pins, etc., Replacement of king pins would cost less than 1 payment of a new truck. A newer truck may retain more value but a used truck will retain more of it's cost than a newer truck. For instance, a new truck which costs $120,000 may only be worth $50,000 in 3 years. A $20,000 truck may still be worth $12,000 in 3 years. Even if you had to replace the engine on the used truck, you will still have spent less and be able to get more out of your investment with the used truck than new.
And Chris, there really isn't much in the way of classroom training concerning becoming an owner operator. I have thought that would be a good subject for having a seminar. OOIDA has had a class for potential or current owner operators, near their offices in Missouri. I don't know anything about them, but you could contact them through their website
www.ooida.com, or give them a call at 800-715-9369.