Cargo Van/Sprinter/B-unit

[BEARTRUCKER]

Thinking out loud here...need CONSTRUCTIVE criticism/feed back:
Thinking about getting into a B-unit for FedEx (CC or Surface? Does CC use B units?). Drove ST WG unit for other owner.
If I can get financing (yeah right). (Probably would have to put house up for colaterral) I would then purchase a van and "be my own boss".
What is the reality of running a B-unit? When I drove ST team we where rather picky about runs based on owner's parameters.
Would stay EAST of the Mississippi, and not got to Canada or NYC/Long Island (been there, done that, hated it)
I could stay out 3 weeks.
Any CONSTRUCTIVE input?
Thanks,
Carl

 

[layoutshooter]

I don't think I would run a "B" unit at this time. When I started in this business 4 years ago that was my plan. I changed my mind after reading posts in here. Vans in general are not doing all that well. FedEx is looking at MAYBE adding a couple more of those "special B" units with the reefers but I have not heard much on that lately. One thing for SURE!!! DO NOT involve your home in financing. That is never a good idea.

 

[LDB]

The only thing I can say is to agree DO NOT use your home as collateral for a depreciating piece of equipment. You get the van with $20k debt and in a year with $18k owed on it it's worth $8k due to mileage. If the worst case happens and you default you have to come up with the $10k or else your home is the $10k source.

 

[piper1]

We B's are a tad slow right now. If you buy a van and want to stay with the Fed, there is no point in buying a Sprinter. FX sells van loads as 4x4x8 feet and nothing more. Yes the Sprinter will get you better fuel mileage but everything else (including the purchase price) eats into those fuel savings pretty quick.

You could buy a used Ford or GM cheap, run it for a while and then decide what "you really want" in a van before spending gobs of money.

Also, if you run a van, you better be prepared to cut that "don't wanna" list. If you get picky, FX will have no use for you and your van or you will go broke, one of the two. There is a surplus of vans, right now is not a good time to turn down runs. Not trying to rile you up, its just the facts right now.

 

[ATeam]

When you say "constructive criticism" I hope you mean feedback that will be helpful to you and not simply information you want to hear.

Purge from your mind right now the notion of putting your house up to secure a van loan. The recession and the slow freight and low rates that come with it are nowhere near over. Using your house to go into debt to finance a truck in the midst of the most severe recession since the Great Depression puts you on the path to losing both your truck and your house.

Read this thread and pay very close attention to what the people who are new in the business are saying. Going into debt to buy a truck of any kind gets you into the business but in no way means you will have freight to haul at profitable rates. It absolutely guarantees that you will have loan payments to make with added interest expense. Getting into business with no financial reserves increases the likelihood that you will fail.

Failing in the business when your house is at stake as well as your van will not happen overnight. It is a drawn-out torturous process made worse by the fact that you will have no one but yourself to blame for the decisions that got you into the mess in the first place.

See also this thread.

 

[interstategar]

As far as I know Fedex CC is not putting on B units, but if they were, and your a team, you would do better than a single driver since you'd get longer runs without a transfer and would have more load opportunities. The downside is if you limited yourself going to the east coast and Canada you'd cut your income. Being picky in this environment isn't a wise business decision in my opinion.