Okay be honest

[themagicoen]

I got a loan, cosigner, truck and company picked out, etc. Payments for said loan is $2,600/month, now that includes $20,000 cash to cover cost. $20,000 residual payment after 5 years. With the some of the $20,000 I'm going to set up a escrow account with the bank and put (and keep) at least 3 months payments in there to help with slow months. At $2,600/month after fuel it would take only 2500 miles or so cover the payment (Thats at 1.20/mile if I do Elite its 1.5 so less miles). Am I crazy to think this will work? I just lost a place to live so I would living in my truck and be in service all the time. Oh and btw I'm a team. Let me have it...

 

[Jayman]

Im not in the biz yet. But...$2600/month for your truck payment sounds way too high. However, that is from my financial outlook. Plus, my research over the last year or so has been from the solo driver mindset since that is what I will do. I plan on keeping my truck payment under $1200/month. But, you know your situation better than anybody and will have to make your own decisions. I am certain others here will give you some good info.

 

[garman351]

(WOW) Are you crazy!!!
You have everything down real good on paper that totally has nothing to do with reality. The freight business is really slow for most Company's for the past several months and January until mid March the business is (DEAD) We have been in the business a little over two years and its nothing but a roller coaster business at best.

$2,600 monthly payment what kind of a truck is that?

Unless you have been in this business driving for a while and it sounds like you are just getting into it, "you will go bankrupt"
It takes a long time to figure out where to go so you will not sit for any lenght of time, or be sent into a bad area and have to deadhead several hundred miles to go back into the shipping lanes etc.

You will also have to learn how to deal with dispatchers, they are out for them selves, and they could careless if you make it or not with bad load offers you accept. Its your job to be a businessman first than a driver second.

You need to figure out what is the minimum per mile rate you will accept to be able to make your payments etc, so you do not work for nothing or worse work to go Bankrupt.

Good Luck
Garmna351

 

[lanier1]

Must be some really nice truck... $156,000 in payments and still owe $20,000 ?? Not my money, no way.

 

[themagicoen]

I know people have been saying Jan - May SLOW but I started driving for Panther last January and I ran my butt off! With almost taking a month off in time from Jan-Jun I did close to $70,000 Gross to truck. Its not that much but it would be enough to cover the payment, expenses and $17,000 in salary for both of us... Thanks everyone for your input.

 

[LDB]

Unless that truck is a brand new truck with reefer, liftgate, toilet, shower and french maid service once a week it's outrageously priced. Your numbers total $156k in payments plus a $20k residual. Your projection is faulty because you say 2500 miles at $1.20 pays the $2600 payment. That isn't correct because you've got fuel to buy to cover those miles. That will be 3x cpm. You've also got to escrow funds to yourself for tires, oil changes, etc. etc. out of each mile's pay. At 120k miles per year your payment is 26cpm and your other costs are around 40cpm. You only get $1.50 on government loads and that will be a small portion of your loads. You might figure $1.25 per paid mile but I'd stick with $1.20 and anything above that is bonus. At 80cpm you need 3250 miles to pay a $2600 payment and that leaves nothing for groceries or anything else. You are about 1000 miles a month short on making your payment with your original estimate. I believe you need to continue truck shopping. There are trucks that should be more reasonably priced than this one.

Leo Bricker, 73's K5LDB, OOIDA Life Member 677319
Owner, Panther trucks 5508, 5509, 5641
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.

 

[Crazynuff]

I'm surprised nobody said anything about the cosigner . If the lendor won't give you money on your own credit there is definately high risk involved .

 

[themagicoen]

My credit sucks from something that happened bout 6 years ago. Since then I've never missed a payment, built up very good credit history but whenever I go for something they look at the thing from 6 years ago and turn me down. Thanks everyone for the info. Am I seriously thinking that much off?

For the 6 month period ending 6/30/2006

Total truck maintenance to include oil changes, preventive maintenance and other repairs:
$567.32

Total misc costs, to include permits, truck washes, copies, faxes, truck parts, parking etc:
$290.63

Total fuel:
$18,715.19
-With an avg 8.4 mpg
$105 – Comdata fees

Fuel Taxes
$98.25

Total tolls including Canada costs:
$413.75

Total operating cost:
$20,190.14


Income:
Total Paid Miles 46606
Total Actual Miles 47332
Total Unpaid Miles 7824
Avg Surcharge 0.285
Total EM 262.24
Total Canada 880
Total DH 681
Total Extra 150
Total Mile Pay $56,732.80
Total Surcharge Pay $10,949.62
Total income: $69,655.66

$49,465.52 Net Income to truck

Pay to myself: $16,109.79
Contractor 1: $7,537.06
Contractor 2: $5,245.33
Total: $28,892.18

Left for a truck payment:
$20,573.34

$2,600 x 6 = $15,600, so I'd have about 5k in the bank still + the 3 month escrow.

 

[ATeam]

What kind of truck is it? How is it equipped? Details please.

 

[rode2rouen]

>I got a loan, cosigner, truck and company picked out, etc.
>Payments for said loan is $2,600/month, now that includes
>$20,000 cash to cover cost. $20,000 residual payment after 5.......
>


DANGER, WILL ROBINSON!!!!!!!!!!!!!!! DANGER!!!!!!!!!!!!!!!!!!



Rex

 

[kwexpress]

KW Express
o/o till i die

I would seriously consider a different truck if I was just getting into this thing.

I know you say you will be living in the truck but hotels are tax deductable to and I would settle for a bussiness class truck and treat yourself to the hotel room in the winter.

I got into this in 1996 by the time 2000 rolled around I had a chance to get a 2000 classic XL real beautiful truck 500hp 18 speed was in heaven for about 6 months those 1,900.00 payments didnt seem like it would be hard to do but before the year end it was getting to be to much going out for the truck and nothing left for me and my family and the stress just got to be to much.I had to get rid of it.

My point is try it and see how you like it.I love to drive but there is alot more to this than rolling down the road and depending on what company you run with there may be as much sitting as driving.
do not spend over 100k for what you could do on 20-40 and make the same money.

 

[themagicoen]

2007 Freightliner M2 (or C112) w/ 22' box, 96" sleeper, Cat c9/c12, auto, etc. Same thing I drove for the 6 months I showed.

 

[davekc]

Is this truck a reefer with a tag and liftgate? How in the world do you get to that price on the truck you describe? I am totally lost.
Not trying to be critical, but I have to be missing something. Is this one truck or two?




Davekc
owner
22 years
PantherII
EO moderator

 

[Pilgrim]

You've got way too much debt exposure with this plan, especially going into the time of year when cash flow will probably be at its lowest point. Just because you were busy in the first quarter of '06 doesn't mean '07 will be the same. You might want to consider continuing to drive for somebody else and look for a better bargain on a truck during the first few months of '07 when there will no doubt be some nice repos available from people who have left the business at year's end. By next May, things might look a lot different (for better or worse). At any rate I'd run, not walk away from this deal.

 

[themagicoen]

I think people are mis reading the post - truck is $130,000

109 Base
10 for generator
1k for seats
10k for lift axle/gate

then 20k for cash in case it is slow. Now if I don't need the 20k I'll give it back and there won't be no residual value.

Thanks everyone for the input its a great help in getting everyone perspective.

 

[LDB]

It sounds like you are either at a really high interest rate or a really high truck price or both. You can get an excellent Sterling class 8 with C9, auto trans, 22' box, 90" sleeper, liftgate, generator and 750k warranty on C9 for $120k. It sounds like you might need to look at a few more trucks.

Leo Bricker, 73's K5LDB, OOIDA Life Member 677319
Owner, Panther trucks 5508, 5509, 5641
Highway Watch Participant, Truckerbuddy
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.

 

[themagicoen]

I was looking at those but just hate bentz sleepers. I've seen all the major brands of sleepers and the best one I've seen is AA w/ their 96". The dealer I have chosen may be slighty high but he is taking care of everything to point of delivering it to Panther for me w/ weight ticket and everything else I need. I guess I'll just wait after hearing everyones views. Thanks.

 

[RichM]

OK everybody has chimed in here with a DO NOT DO this deal.Your exposure is huge,you or your co driver could wind up with an illness that would keep you off the road for weeks. You are working for the truck and not for yourself. Step back and reconsider.

There is a member of EO that I communicate with by Phone and E mail. He is putting on a $28,500 reefer unit and will be an outside contractor for Fedex,Panther, and LEA. This type of operation makes big bucks with a minimum investment. If things go bad he has no huge payment hanging over his head and could walk away if he had to. This is the way to go.

 

[Crazynuff]

>2007 Freightliner M2 (or C112) w/ 22' box, 96" sleeper, Cat
>c9/c12, auto, etc. Same thing I drove for the 6 months I
>showed.
I'd also avoid '07's altogether . If you can't find an '06 wait until '08 'til they get the bugs out of the new emissions systems .

 

[Dispatched]

2007 Freightliner M2


Nice truck.....but, it's a city delivery vehicle. Can't imagine spending weeks>months>years living in a vehicle designed for local city work.

You'd do yourself a great service by investigating purchasing a class8 truck, which will most deffinatly serve you better in the long run. Class8 will just be broken in about the same time an M2 needs a total makeover. Cost of operation of a class8 is very comparable to that M2.

Its obvious you've done your homework and impressed by the fact you've got your numbers together. I'm hoping all this works out for you.