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Trying To Go O/o

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ezrollin

TB Lurker
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Hi,
I'm trying to buy my own truck with my credit union. Nothing special. Just cheap.

How much personal cash do I need to have a successful start?
For fuel, registrations, inspections, insurance, savings for mechanical problems, etc
Can you break it down for me?

I don't even know where to go to declare my own authority (if I need to) etc
Thanks,
Jon
Central Freight Lines LTL
 
ezrollin said:
Hi,
I'm trying to buy my own truck with my credit union. Nothing special. Just cheap.

How much personal cash do I need to have a successful start?
For fuel, registrations, inspections, insurance, savings for mechanical problems, etc
Can you break it down for me?

I don't even know where to go to declare my own authority (if I need to) etc
Thanks,
Jon
Central Freight Lines LTL
Click to expand...


Hello, Jon.
I was an O/O for Central......way back when they were Union in 1982,....for about a month.
Look over the lease.....VERY CAREFULLY.........You can make changes to a Lease yourself.....It's an agreement BETWEEN Two Parties.....
Get Legal advice......Worth a few dollars.....

I was an O/O for 9 years,....and sold my last truck...on my own terms,...to get back in the Union...(and get a pension...).
I know quite a bit has changed in the last 30 years,..........and, a lot hasn't. I spent 42 years behind the wheel.....

As an O/O,.......there should be no such thing as "Take it or Leave it..." Any company that says that....wants a poorly-paid employee, not an O/O.

How much money? Oh,.......realistically,......about 3 or 4 million should cover your first year.
You probably think I'm joking.......Contact me in 365 days......

Seriously,.......depending on the truck, your personal finances, whether you're owning your own base plate, and who covers your fuel tax and HVUT..(..the tax you pay for the priviledge of buying a base plate..)....and surprise repairs, adjustments,...and "incidentals".....
..I'd say you should have at least a couple thousand on hand....for the first month.

Whoever you lease to...........NEVER FORGET..your OWN time......Loading, Unloading,..waiting.....is just as valuable as the truck is. If you didn't have a CDL......you'd have to hire a guy,....and he wouldn't stick around if you told him he wasn't getting paid for loading, unloading,...waiting,,...fueling,..repairs.....
Price YOURSELF and your Skills just as valuable as the truck....

PAY yourself,....and then pay the truck.....If you can't pay yourself at least as much as an hourly employee gets...BEFORE your truck payment , expenses, and profit,......then there is...something wrong.

NEVER run illegal.....NEVER run overweight.....NEVER speed........You will be surprised about how much legal trouble you can get into if you violate a law while leased to a carrier.....you are NOT an employee...

Good Luck, Brother.....Oh,...and join the OOIDA. Best advocacy group for independent truckers....By law you can't join a Union.....you are a "contractor",...and as such,...are barred from collective bargaining. OOIDA is a contractor's association...

Pay your Taxes...FOUR TIMES a year......Rookie Mistake for contractors.....
 
canaryinthemine said:
Hello, Jon.
I was an O/O for Central......way back when they were Union in 1982,....for about a month.
Look over the lease.....VERY CAREFULLY.........You can make changes to a Lease yourself.....It's an agreement BETWEEN Two Parties.....
Get Legal advice......Worth a few dollars.....

I was an O/O for 9 years,....and sold my last truck...on my own terms,...to get back in the Union...(and get a pension...).
I know quite a bit has changed in the last 30 years,..........and, a lot hasn't. I spent 42 years behind the wheel.....

As an O/O,.......there should be no such thing as "Take it or Leave it..." Any company that says that....wants a poorly-paid employee, not an O/O.

How much money? Oh,.......realistically,......about 3 or 4 million should cover your first year.
You probably think I'm joking.......Contact me in 365 days......

Seriously,.......depending on the truck, your personal finances, whether you're owning your own base plate, and who covers your fuel tax and HVUT..(..the tax you pay for the priviledge of buying a base plate..)....and surprise repairs, adjustments,...and "incidentals".....
..I'd say you should have at least a couple thousand on hand....for the first month.

Whoever you lease to...........NEVER FORGET..your OWN time......Loading, Unloading,..waiting.....is just as valuable as the truck is. If you didn't have a CDL......you'd have to hire a guy,....and he wouldn't stick around if you told him he wasn't getting paid for loading, unloading,...waiting,,...fueling,..repairs.....
Price YOURSELF and your Skills just as valuable as the truck....

PAY yourself,....and then pay the truck.....If you can't pay yourself at least as much as an hourly employee gets...BEFORE your truck payment , expenses, and profit,......then there is...something wrong.

NEVER run illegal.....NEVER run overweight.....NEVER speed........You will be surprised about how much legal trouble you can get into if you violate a law while leased to a carrier.....you are NOT an employee...

Good Luck, Brother.....Oh,...and join the OOIDA. Best advocacy group for independent truckers....By law you can't join a Union.....you are a "contractor",...and as such,...are barred from collective bargaining. OOIDA is a contractor's association...

Pay your Taxes...FOUR TIMES a year......Rookie Mistake for contractors.....
Click to expand...
No offense C, but having owned my own for 10 years, from74-85, and what is happening in the industry today, especially with rates in some cases below operating costs, I would tell anyone to work as a company driver for a while yet, at least until this virus issue settles down. The first few years can make or break you when owning your own, with just a few poor decisions. Thanks for calling though.
 
Great Advice!
My thoughts were that fuel is cheap and interest rates are really cheap right now. So if I could make it in this economy, I can make it in a better one. I'm sure my company would hire me as an O/O and keep me busy.
Schneider is trying to give me a bad deal.
My credit union denied me cause they don't do big truck loans but my bank said they do!
I'm thinking it might be to my advantage to set up an LLC first but I'm guessing that's at least $1k.
I'll have to look into it.
Thanks
 
Schneider was saying that it would be $1100 minimum a week (dont remember if that includes fuel) and I'd have to make up the difference when the loan ends to pay it off in full. They were over the road only.

Its $300 to set up an LLC in Texas (I dont know about lawyer costs).
But I dont know how much the reoccuring fees are.
I believe I'd have to set up an EIN (even though I'm not an employer) which is the same as a Taxpayer ID #.

With my own financing which might be around 10% interest rate I'm looking at a $650 truck payment on a $30,000 truck (but I'll want to buy warranties too)

1) Around how much is insurance for bare minimum coverage I'd need (actually I will probably have to buy some hazmat coverage since its Central Freight Lines but we dont haul anything crazy).
2) How much is OOIDA?
3) How much is IFTA?
4) How much is inspection for just a truck? $150?
5) How much is registration? $150?
6) Are there any other costs like getting my own authority? I'm scared of unknown costs
 
One big thing is my bank requires me to have a Debt to Income Ratio of lower than 30%.
Due to my $120k mortgage. It makes it an obstacle but very doable with some finessing!
 
ezrollin said:
Hi,
I'm trying to buy my own truck with my credit union. Nothing special. Just cheap.

How much personal cash do I need to have a successful start?
For fuel, registrations, inspections, insurance, savings for mechanical problems, etc
Can you break it down for me?

I don't even know where to go to declare my own authority (if I need to) etc
Thanks,
Jon
Central Freight Lines LTL
Click to expand...
Just my 2 cents. I have never been an O/O, but being an O/O is no different they running any business. So on that aseptic of it her I go. You need to have no personal debt, credit cards, car loans, or any other types of loans excluding you house. You need to have a emergency fund with 6 months of living expensive these have nothing to do with the trucking part. They are so you can pay the bills and put food on the table. Next you need a account fund for all the other ::shit:: that will happen because we all know ::shit:: happens in trucking, breakdowns, and towing it called Murphy's Law. That is in a separate account from you emergency fund. I know 2 guy that went down this road. One banked all the money he could before doing it the other just jumped in they both had there problems in the being with truck issues. The one who just jump in had to put $11K of injectors into his truck only one month in which added another debt on top of everything else. They are still both at it just the one that jumped in has to work 7 days a week were the other work 5.
Just get yourself in a very good financial position first so when Murphy comes knocking and he always does you will be much better equip to handle it.
Good Luck and keep it between the lines
 
ezrollin said:
Hi,
I'm trying to buy my own truck with my credit union. Nothing special. Just cheap.

How much personal cash do I need to have a successful start?
For fuel, registrations, inspections, insurance, savings for mechanical problems, etc
Can you break it down for me?

I don't even know where to go to declare my own authority (if I need to) etc
Thanks,
Jon
Central Freight Lines LTL
Click to expand...
I've driven from Pond to Pond for several Owner Operators from 2000 - 2017.
I was ONCE offered an opportunity to become a Owner Op.
I've NEVER wanted to be a/an Owner Operator because of the EXPENSES and HEADACHES in Tractor-Trailer Operation.
I DROVE EVERY TRUCK O.T.R. AS IF I OWNED IT (because I wanted to get back home), even for the well abused, Slip-Seat, in Local gigs.
Just Cheap.
Click to expand...
$30,000.00 doesn't usually offer much of a Truck that doesn't need, soon enough and usually not close to home, some *EXPENSIVE REPAIRS. *2 NEW STEERS can easily be $1300 (Goodyear Dealers' Specials). 8 Drives can EASILY be $2400.00+. A Top End Repair can be $17,000 and UP. Rebuilt Transmission, Rear Ends, BRAKES, Electrical Issues, depends upon Location, Time of Day/Night and Your Attitude. Bad Attitudes usually Raise Labor Rates as well Parts availability.

How much personal cash do I need to have a successful start?
Click to expand...
MANY have had much Cash and didn't have a "successful start", but did a successful end.
Well Sir, "One Can Make A Small Fortune In Trucking If First One Begins With A Large One"!
Personal Cash is up to the Individual.
I've heard: "don't carry more than you're able to accept losing". Same for Casinos.
People still get "jumped" in Truck Stops and other locations.

KEEP US UPDATED!
CHEERS!!
 
ezrollin said:
Schneider was saying that it would be $1100 minimum a week (dont remember if that includes fuel) and I'd have to make up the difference when the loan ends to pay it off in full. They were over the road only.

Its $300 to set up an LLC in Texas (I dont know about lawyer costs).
But I dont know how much the reoccuring fees are.
I believe I'd have to set up an EIN (even though I'm not an employer) which is the same as a Taxpayer ID #.

With my own financing which might be around 10% interest rate I'm looking at a $650 truck payment on a $30,000 truck (but I'll want to buy warranties too)

1) Around how much is insurance for bare minimum coverage I'd need (actually I will probably have to buy some hazmat coverage since its Central Freight Lines but we dont haul anything crazy).
2) How much is OOIDA?
3) How much is IFTA?
4) How much is inspection for just a truck? $150?
5) How much is registration? $150?
6) Are there any other costs like getting my own authority? I'm scared of unknown costs
Click to expand...

Do the LLC.....In the long run, if you do go bankrupt....you don't lose your house.
And it will be the best $300 you ever spent in trucking..
IFTA plate will run....depending on where you run.....roughly $1100- $1500....
A year.....
HVUT is $550 a year. Can't buy an IFTA plate without paying the HVUT first.
A $30,000 truck? With, what?.....800,000 miles on it?
Be VERY CAREFUL with used(abused) former fleet trucks....Have sacks and sacks of nickels and dimes, for when the truck nickels and dimes you to death......
.OOIDA offers truck Insurance......Real truck Insurance......One thing you will find out, is that there is an AWFUL LOT of scam artists on the fringes of just about every aspect of trucking......Shops, tires, towing,....insurance!...dispatch, lumpers....
Everyone regards you as a naive cowboy millionaire asking to be fleeced...
Don't help them.....
Keep us informed.

And......look up "contractor status" as it pertains to taxes, and how a lessor should treat you....
(Hint:...NOT as an employee...)
 
canaryinthemine said:
Do the LLC.....In the long run, if you do go bankrupt....you don't lose your house.
And it will be the best $300 you ever spent in trucking..
IFTA plate will run....depending on where you run.....roughly $1100- $1500....
A year.....
HVUT is $550 a year. Can't buy an IFTA plate without paying the HVUT first.
A $30,000 truck? With, what?.....800,000 miles on it?
Be VERY CAREFUL with used(abused) former fleet trucks....Have sacks and sacks of nickels and dimes, for when the truck nickels and dimes you to death......
.OOIDA offers truck Insurance......Real truck Insurance......One thing you will find out, is that there is an AWFUL LOT of scam artists on the fringes of just about every aspect of trucking......Shops, tires, towing,....insurance!...dispatch, lumpers....
Everyone regards you as a naive cowboy millionaire asking to be fleeced...
Don't help them.....
Keep us informed.

And......look up "contractor status" as it pertains to taxes, and how a lessor should treat you....
(Hint:...NOT as an employee...)
Click to expand...
Don’t forget one of the worst mistakes made by a want to become owner operator. Stay the hell away from lease- purchase....
 
BIG R GUY said:
Don’t forget one of the worst mistakes made by a want to become owner operator. Stay the hell away from lease- purchase....
Click to expand...

80000miles? You can make big payments if you can run your truck, but can't make small payments if it's in the shop.
OO's have told me, if you want to make a million bucks, start out with 2 million.
 
Actually,....if you can swing the payments,....and aren't afraid to dedicate your life to the truck for about 5 years.......a brand-new truck, under warranty......is the way to go.
Very expensive,....But, don't be a Dolt and buy things like Shiny Wheels, Straight Chrome pipes and Stupid Stuff like that....
You're Running A Business!!

Spec out a durable, fuel-efficient good reputation economy truck. Not Fancy,...no matter what the salesman says. Do you need a Big Sleeper? No?.......Go with a small single one. Generations of drivers survived in them.......
Going to be away from home for weeks?......A full-size custom sleeper might save you money if it keeps you out of motels.....

Do you need a BIG Hammer? What kinds of loads are you hauling? Average around 30,000?....Like Central's line-haul trucks do? You need a fuel-efficient, medium horsepower, no-frills motor,...with a 9 spd, and highway-ratio rears.......

If you can't afford a new one,..........go shopping for what YOU need,....not what the company wants you to have. 99% of O/O's switch leases within two years. You probably won't be with Central forever......

A truck under warranty is...Great Peace of Mind,...your first year as an O/O. Not many can pull that off. But, if you can.....successfully,......I predict a long career........
 
If you don't have any contract freight set up with a dedicated customer I would advise to not step into the market right now. It's bad. In fact, it's so bad, even the spot market/loadboards are ghost towns. The little freight that is available is being ***** by greedy brokers.

I get a list from a lumber yard that I'm direct with and it has all the load details on it including what they would like to pay for each run. One in particular they are trying to get moved for 850 dollars. I just saw a scumbag brokerage (Sureway Transportation MC#186013) list it on ITS for 575 dollars! That was for a 400 mile run. Do that math!

I called the broker to confirm it wasn't a typo, bitched them out and hung up. You'll be bankrupt in zero time flat in this market. You're better off as a company guy. Much more secure. Right now, the only people making money off your hard work and expense will be brokers and shippers.
 
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