Day hauler going to buy own truck

[bjscheel]

My husband has been working for a small trucking company for three years. They are just daytime runs- he's home every night. It's agricultural based, taking grain or fertilizer from elevator to elevator, from the field to the elevator, beans to the ethanol plant, etc., in a hopper bottom.

The boss wants out. He wants to sell the trucks. We don't want to buy "the business" but are seriously considering owning one truck and him being on his own. There are plenty of other guys in the area doing it, it works for them. None of the other guys in the company will still haul, so there will be just my husband still going where there were 3 or 4 guys doing these loads. My husband is well known and liked at all the elevators and places where they get loads, he doesn't think it will be a problem getting loads.

I guess my questions are, if anyone here is experienced in this type of trucking, what permits, regulations, etc. does he need to follow and any other advice getting started?

 

[nikon66]

I work construction hauling rock, sand, and asphalt for a broker locally. If you husband has a relationship with the people "customers" that he has been hauling for then should be a easy transition. Remember you need to get his authority to haul intrastate as well as base plate on his truck. Depending what state you are in they might require any permits. Remember insurance will have to be up to the level that his customers require.

Also remember to find out what the billing cycle is for each customer some don't pay for 60 days and get a contract a simple piece of paper stating the rate per load and terms of payment. Have them on file for each customer.

Where are you located ?

 

[bjscheel]

We are in Iowa. How do you get this "authority"? I've seen it mentioned here. He may also go into Nebraska and Missouri on occasion.

I just got the numbers from the boss on the average incomes and costs on running two trucks. He says if you have two you will get more customers because you can supply two trucks instead of one. But, having an employee opens up a lot more paperwork and responsibility. I know how to do it, I'm an accountant, but I'd rather not have to deal with it in both of our jobs!

Looks like he wants $250,000 for two trucks and trailers. We've been shopping and can get one set-up for far less than $125,000...I think we'll be buying elsewhere.

 

[nikon66]

I would not spend over 50k for your first truck and trailer. And I would stay away from more than one truck until you get your feet wet. If you email me directly [email protected] I will give you my phone number and tell you how to get things done. As well as the name of the guy that helped me setup for FREE. Don't pay anyone to do it for you. It is so easy to do.

 

[bjscheel]

I would not spend over 50k for your first truck and trailer. And I would stay away from more than one truck until you get your feet wet.

That is exactly what one of the local guys that's already doing this said. Much as we would love to help the boss get rid of his trucks, we have to do what will work for us. We're going to talk to the banker tomorrow. He's found a truck for $24,500 that he likes so that's in range. I've also printed a booklet from the Iowa DOT with all the permit information and contact numbers. The guy at the dealership is also going to show how to get some of that stuff. I think we're on our way!