Starting as an owner opertator...

[Youngmogul]

Hello All!


I am currently in the process of obtaining my CDL.... After I do, I intend on starting as an owner operator, with hopes of purchasing multiple trucks in the near future to lease or hire other drivers to assist in bringing home the bacon That said, I was searching online for a nicer truck that would do the initial job, that would/should be resalable in a year or two. I found a number of trucks that LOOK great, 250k-500k miles, And advertised as *road ready... The problem is, they are too cheap! lol, not joking.. I was expecting prices to range 50-100k for a newer used model, and found a fleet of 2005 volvo's for 19-24k a piece! Is this type of affordable pricing standard in the industry? What should I expect to pay for a newer model ie 2005 or better, with a few 100k miles? I'd probably be interested in 5 units initially if they are that affordable! Secondly, What should I look for in a truck that would be used OTR? Tow limits/capacity etc.. Any help will be greatly appreciated!


YoungMogul

 

[misterbreeze]

Get a truck paper at a truck stop or go on line to www.truckpaper.com and compare prices. The reason prices are low is because freight is down and demand for trucks has followed. Finding loads for those trucks will be the challenge. How do you intend to fill those trucks? Are you going to go from load boards? Lease them on to an existing company? Or will you get your own authority and find your own customers? What research have you done? Have you established your operating expenses. Have you passed all the entry qualifications to begin in the industry? What type of freight do you intend to haul? Are you going to have your own trailers? Rent/lease or purchase? The type of freight will also determine the additional equipment you will need. There is so much more to consider I cant even think of it all right now.

 

[heavyhaulerss]

Hello All!


I am currently in the process of obtaining my CDL.... After I do, I intend on starting as an owner operator, with hopes of purchasing multiple trucks in the near future to lease or hire other drivers to assist in bringing home the bacon That said, I was searching online for a nicer truck that would do the initial job, that would/should be resalable in a year or two. I found a number of trucks that LOOK great, 250k-500k miles, And advertised as *road ready... The problem is, they are too cheap! lol, not joking.. I was expecting prices to range 50-100k for a newer used model, and found a fleet of 2005 volvo's for 19-24k a piece! Is this type of affordable pricing standard in the industry? What should I expect to pay for a newer model ie 2005 or better, with a few 100k miles? I'd probably be interested in 5 units initially if they are that affordable! Secondly, What should I look for in a truck that would be used OTR? Tow limits/capacity etc.. Any help will be greatly appreciated!


YoungMogul

your pulling my leg, right?

 

[Larry]

At least he didn't ask this at CAD. I'm gonna be blunt, your crazy for wanting to buy not 1 but several trucks with a new CDL when we are in a recession. Companies are already fighting for freight especially in dry van and reefers, flatbed freight is pretty much well dead.

Where are you gonna get the freight?

Do you have a plan to get driver's?

How are you gonna pay for fuel?

How are you gonna pay for maintenance?

How are you gonna pay these driver's?

You won't get rich in this industry. Why do people think truck driver's are rich?

 

[Tn. Truckers Wife]

I have to agree with Larry on this one...

 

[Larry]

I been in your shoes Young I know you want to buy a truck and will ignore the negativity but we are just trying to keep you from making a mistake and a recession is not the time to start a trucking company or become an owner operator.

 

[Scorp]

I will add just a bit...the rather cheap prices on trucks right now are correct. For a few reasons, most of which is that anyone with even the slightest business mindset knows this isn't the time to be taking on a payment that they don't have too. People are running trucks longer and putting off buying new ones. The used market is over saturated with trucks. No one is buying! If you had the cash to go blow on a truck and not have a payment you could probably make out alright. However, I wouldn't recommend that to someone who doesn't even have a CDL yet.

 

[Dayripper]

IMO......dont even bother getting into this industry. its over saturated with drivers as it is.

 

[Larry]

With CSA 2010 they will get weeded out and then we'll have a "driver shortage". Oh hell they been talking about a "driver shortage" for years.

 

[heavyhaulerss]

I think the poster is just trying t get a reaction out of us. an expected response. that's why my reply was short,sweet & simple

 

[patriciajnsn]

Very vwell said Larry.Makes me wonder what these people are thinken when they don't even have a days exp driving a semi.Then with our fastly sinken economy why would anybody want to buy a truck.

 

[misterbreeze]

Very vwell said Larry.Makes me wonder what these people are thinken when they don't even have a days exp driving a semi.Then with our fastly sinken economy why would anybody want to buy a truck.

That would depend on the amount of confidence that person has in their abilities. I started a painting business in a pretty deep recession and had to turn down customers. And I wasnt cheap. I did a few of the Chicago Bears houses and some pretty large mansions, 8-10,000 square feet. I also picked up some national accounts. All in a depressed economy. So its not impossible but it does take some dedication, sometimes at a high cost. Running your own business is a 48hr a day proposition. Doesnt leave much time for relationships. But thats a different subject. And I myself will be looking into the purchase of a truck in the near future. Still in the research phase. If CSA 2010 does knock out as many as predicted, its going to present some mighty nice possibilities. Dont want the big companies being the only ones to capitalize.

 

[Rigjockey]

kinda reminds me of the old joke how to make a million dollars trucking? start with two

At least he didn't ask this at CAD. I'm gonna be blunt, your crazy for wanting to buy not 1 but several trucks with a new CDL when we are in a recession. Companies are already fighting for freight especially in dry van and reefers, flatbed freight is pretty much well dead.

Where are you gonna get the freight?

Do you have a plan to get driver's?

How are you gonna pay for fuel?

How are you gonna pay for maintenance?

How are you gonna pay these driver's?

You won't get rich in this industry. Why do people think truck driver's are rich?

 

[DanBowkley]

My advise: DON'T DO IT DON'T DO IT DON'T DO IT!!! Did I miss anything?

Seriously these guys are right. I've been an O/O for just over three years now, leased to a major carrier, and even they're starving. I'm averaging about 250-300 miles a day, which is almost enough to break even.

Notice I said ALMOST. For every week I'm on the road, and this has been true for about six months now, I OWE THEM MONEY. Yeah that's right, some of us have to pay our employer for the privilege of working for them.

And that, my friend, ain't gonna make your truck payments. And of course you'll have to still pay your drivers some fixed amount per mile, again out of your pockets. Unless you're Mr. Moneybags and doing this on a lark, or you've got access to some serious credit, it just ain't gonna work.

Do yourself a huge favor, drive with a well-reputed company for at least a year, get a feel for the industry and chat up as many experienced drivers as you can. This thing of ours CAN be made to work, IF you do it right, but it's a zillion times harder in this economy. And it wasn't all that easy to begin with.

Dan

 

[flmore]

As I see it this is one of the major problems with this industry! It looks easy, the companys, agents, brokers,and other assorted vampires are just rubbing thier hands with a fresh pen waiting for someone just like you. Ignorence is bliss. If you really wanted to break into this style of life and just had to own a truck then I would advise you to purchase about a $5000.00 CASH truck. Put it to work, live in the real world for a while, find out how easy it is to go belly up. Or you can purchase a $50,000.00 (notice that I used Purchase not cash) and go belly up. Problem. Not only do you get hurt, but so dose everyone else who is around you. Wife, kids, mom, dad and so on. It is because of people like you, that the rates are low because you will load anything for any rate trying to stay alive. Take note, fuel @ $2.80 per gal. @ 6 mpg (luck) = $.466 per mile. Tires @ $.05 X 10 (tractor) = .50 . Let's see there is insurance, licence, trailer,(rent or purchase) and the list go's on. If you still insist on this after all the negitive response send me a PM and I will gladly spend the time to explane it to you in great detail. Oh, by the way I started in 1955, and fuel was $.25 per gal and it was not easy then.
Floyd