Are Cargo Vans profitable?

Turtle

Administrator
Staff member
Retired Expediter
Being that you're a total greenhorn... You can probably put up with anything for a few months. If you can, my advice (or at least something to strongly consider) would be to suck it up and team for a while. You'll learn more teaming with someone in 3 months than you will in a year on your own. Not the least of which is whether or not you can put up living with someone in something not much bigger bathroom. :D
 
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BoogiedownBronnx

New Recruit
Researching
Turtle, yeah, that's my biggest apprehension, the fact of sharing the space that amounts to a walk-in closet with a complete stranger, not to mention that I literally have to trust this person with my life while I sleep... I just need to get past that part, and keep my eye on the prize, of gaining that very valuable thing called "experience" then I can make the necessary moves to put myself in a better situation... I truly appreciate, your candor, and all your advice is most certainly heeded... Thank You, really!
 
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Mailer

Veteran Expediter
Owner/Operator
"... I just need to get past that part, and keep my eye on the prize, of gaining that very valuable thing called "experience" then I can make the necessary moves to put myself in a better situation..."


You got the right stuff, go for it. :)
 

BoogiedownBronnx

New Recruit
Researching
Thank You, Mailer, I really appreciate that vote of confidence... I plan to do just that. I've been in talks with someone from Tempus Transport, do you know anything about them?
 

Mailer

Veteran Expediter
Owner/Operator
Thank You, Mailer, I really appreciate that vote of confidence... I plan to do just that. I've been in talks with someone from Tempus Transport, do you know anything about them?
No, but googled and found this.
Pls be aware that some comments may be negative but others may have good experience with the company. Sometime you just gotto go with your gut feelings.

Good luck:)

https://www.google.com/url?sa=t&sou...95mMw9RoPZlYUhShw&sig2=P8nvh5nIUSZZhwoQhHqKlA


Tempus Transport
 

BoogiedownBronnx

New Recruit
Researching
Yeah, I got the same thing from google... The Lady I've been speaking with seems nice. I'm just looking for some experience, not necessarily a life long permanent home... Thank you, Mailer!
 

BoogiedownBronnx

New Recruit
Researching
Tobster317, I haven't forgotten, gaining experience is front, and center priority for me right now... Just hoping that my first company isn't too much of a dud! Thank you, I appreciate you!
 

Tobster317

Expert Expediter
Owner/Operator
Being a team will teach you a lot for a new person. You will be to busy learning, good loads from bad ones, weight stations, good areas vs bad areas, how different carries do different things and most importantly Money. And so on. So don't worry about the small space, just make sure you have some conversation with your partner before you commit.
 

BoogiedownBronnx

New Recruit
Researching
Being a team will teach you a lot for a new person. You will be to busy learning, good loads from bad ones, weight stations, good areas vs bad areas, how different carries do different things and most importantly Money. And so on. So don't worry about the small space, just make sure you have some conversation with your partner before you commit.

Great advice, man I really appreciate it, will heed that!
 

blizzard2014

Veteran Expediter
Driver
Yeah, I get all that. I never said cargo vans aren't profitable. In fact, the first 5 words of my post said the exact opposite of that. All I said was, splitting cargo van revenue between an owner and a driver is probably the least profitable way to be in this business. I didn't say it definitely, is, I said it probably is, because I know some straights and tractors who aren't running profitable at all.


The same load in a straight truck at a straight truck rate or a tractor at a tractor rate will yield more money and thus be more profitable for the driver. And if you owned the van, there's no way you can convince me that not pocketing that $40 net the owner gets is more profitable than pocketing it yourself.

You are right about owning the van. You don't have to work as hard to make money when you own the van yourself. The short loads do pay more. I used to take the short loads and the long loads when I worked for a fleet owner. In my business model, all loads add up at the end of the week. I don't care if I get my miles in 1 2k mile load, three 700 mile loads, or 10 200 mile loads. The only negative aspect of running a bunch of shorter loads is that you have to work harder to make the money, and you definitely get less sleep. I think that with fuel prices being what they are right now, you can make a lot of money working for a fleet owner if you can get the miles. It's like Nitmevan said; if you aren't getting miles, it doesn't matter how high your percentage is, you're still not going to make any money!
 

blizzard2014

Veteran Expediter
Driver
Also, some cargo van fleet owners are not in it for the money. Some use the negative income as a write off to compensate for another business/or income that is actually making money. If I can write off 20k from the cargo van business, or even more for several cargo vans, I can carry that over to another business and save thousands of dollars in taxes!
 

xiggi

Veteran Expediter
Owner/Operator
Why wouldn't they just invest something in the profitable business they can use as a tax write off? I'm not sure I'm buying that one.
 

blizzard2014

Veteran Expediter
Driver
Why wouldn't they just invest something in the profitable business they can use as a tax write off? I'm not sure I'm buying that one.

Say I'm a lawyer making 200k a year and I want to reduce the amount of taxes I pay. I can buy a couple of cargo vans and put drivers in them and spend all of the profits on driver pay, fuel, and maintenance. Then I take the mileage deduction and all of the other deductions and show a 100k a year loss on a couple of vans. That will cover 100k of my 200k in lawyer income. I don't know if anyone is doing this, but it can be done theoretically. All of the profits from the vans get eaten up and more by the business. Then you carry the loss over to your regular income!
 

akkshole

Veteran Expediter
Owner/Operator
US Air Force
What I am curious about, is why are people more anxious to drive a van or straight instead of a tractor trailer? Especially if they are younger, go to a school or a carrier and get your CDL and suck it up for a year driving OTR, after you can damn near drive for anyone, be home daily, weekly, or other...can run solo, or if you really want to expedite, that too...they teach you a lot (not everything) when you get class A...I am not familiar with many straight truck schools, and I rarely have known of someone being turned down for an expedite job if they did a year OTR safely in a semi. Just a few thoughts...I had 15+ yrs in semi with van, reefer, flat, dump and even car hauling before I switched to expedite. I also don't have much in the way of bills now. Can take time off if/when I choose and my expenses are mostly what I create now while out on road.
 
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Turtle

Administrator
Staff member
Retired Expediter
What I am curious about, is why are people more anxious to drive a van or straight instead of a tractor trailer?
Because it's mostly low risk and low effort. The "I want it now!" generation isn't gonna suck anything up for a year, so the easy money (they think) in a cargo van is far more appealing than going through the expenses and thoroughly exhausting rigors of truck driving school.
 
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tknight

Veteran Expediter
I know for a fact that lots of Drs and lawyers invest in entertainer tour coaches and they do lose money and are write offs. Ailton million dollar coach has a hard time recovering it's cost not many acts are willing to pay 600 a day and 350 a day to the driver 7 days a week so they do lose money. When doing tours that are big and pay well are over rents go down so it becomes a loss hence writeoff
 

BoogiedownBronnx

New Recruit
Researching
Akkshole, in answer to your question... I already have a CDL-B, so I can get into this now. Rather than having to go through getting a class A. Either paying for trucking school, or getting on with a company, with a year commitment. I see this as more practical.
 

BoogiedownBronnx

New Recruit
Researching
Because it's mostly low risk and low effort. The "I want it now!" generation isn't gonna suck anything up for a year, so the easy money (they think) in a cargo van is far more appealing than going through the expenses and thoroughly exhausting rigors of truck driving school.

Not quite "I want it now"! Rather, the practicality of already having what I need, license wise to get started on a straight truck.
 
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