Cargo Van / Sprinter Income

Benzoid

Seasoned Expediter
Hi,

I’ve been doing research on getting into Cargo Van or Sprinter Expediting. I’ve been on the site here reading and searching for at least a year.. Maybe more and here is what I’ve come up with. Let me know where I’m going wrong… :)

Assuming one was going to buy a New or Newer Sprinter van and go Solo for XX company.

Van Payment $600 per month ($7500 per year)
Insurance for van $100 per week ($5200 per year)
Maintenance/other expenses for van $100 per week ($5200 per year)

Total for Van = $17,900 per year before fuel

Fuel per year @ $4.00 per gallon (not counting idle and deadhead or FSC)
Average 1000 miles per week @ 20mpg $13,000 fuel
Average 1500 miles per week @ 20mpg $18,200 fuel
Average 2000 miles per week @ 20mpg $23,400 fuel

Yearly gross:

Average 1000 miles per week @$.80 = $41,600
Average 1500 miles per week @$.80 = $62,400
Average 2000 miles per week @$.80 = $83,200

So if you get 1000 miles average per week then you only make (roughly) $11k, 1500 you get $26k and 2000 you get $42k.

Fuel surcharge is the one thing I couldn’t find out much about, also, stop pay (if it exists) and deadhead pay (if that exists)

From my figures above, it doesn’t seem that driving a van would even be a good part time living unless you get 2k miles a week.

I’m sure I’m missing something.

I’m just thinking that I’m going to burn out of this office job soon and thinking that expediting might be a nice challenge and a good change of pace.

Thanks for reading this and PLEASE tell me what I’m missing.

-Mike

PS. PM or Email if you wish [email protected]
 
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BillChaffey

Veteran Expediter
Owner/Operator
US Navy
I don't know what Maintenance on a Sprinter cost's, but I think $200 a week for insurance & maintenance is high, (way high).
 

hondaking38

Veteran Expediter
ya your ins and maint exp might be a tad high, now figure if you only average 750 miles a week...thats what my 2 vans r averaging at the cat, since june...
 

LDB

Veteran Expediter
Retired Expediter
I don't operate vans so this is subject to correction from others who do and know more but here's my observations on your post. My insurance on a $110k D unit is $374 a month so I think your insurance estimate is high by a pretty good margin.

Fuel surcharge for vans is often based on 15mpg and $1.25 fuel. That means if fuel is $3.50/gal the fsc is 15cpm (3.50-1.25)/15. If a Sprinter driver gets 20mpg he is accumulating $3 in fsc before burning 1 gal of fuel so the actual net cost of the fuel to the Sprinter driver is 50 cents a gallon. That only applies when being paid fsc. Any other time it's $3.50 or whatever the going price is. If you are disciplined enough and smart enough to keep your speed below 65mph you should have a fairly low overall fuel cost. If Fedex needs a Sprinter based out of wherever you are you'll do even better as the fsc for vans is 15cpm this week and that is paid on every mile before, during and after the load provided you are positioning where they need you.

I wouldn't base a decision on more than 1k miles a week because 1. all companies have a surplus of vans of at least 20% so you'll sit more than you should have to and 2. your miles will be diluted by time off. Even if you run 8 weeks out and 1 week home that's only about 47 weeks per year and means you have to run 1107 miles each of those 47 to make your 1k/wk avg. Run 6 weeks out and 1 home which is probably more common and you're down to about 43 weeks running and need 1209 miles each week running. The more time off goes up the more the actual each week must go up to compensate for the annual average.

Good luck and now some folks who have a clue for vans will come in and give you the real story.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Van payment $600 a month?
Is that over 72 month term or you going to make a hefty down payment?
If your planning 72...Kiss your butt bye bye...

Actually the maintenance is fine at 100 bucks IF you put this money away for future use....replacement parts eventually will come and you'll need every dollar ya got to keep up on the PM.

The PM MUST be done on Sprinters...Do not skimp on this issue...you'll pay,pay,pay if you do....
 

BillChaffey

Veteran Expediter
Owner/Operator
US Navy
I own a Ford E 350 and if I thought my Maintenance would be $5,200.00 a year I would park it.
 

OntarioVanMan

Retired Expediter
Owner/Operator
I own a Ford E 350 and if I thought my Maintenance would be $5,200.00 a year I would park it.

Well bearcat...I am with you...

As the van ages repairs of course go up...the first couple years you'd have a surplus which you could transfer money out....BUT keep in mind a tranny @ 7-9,000....turbo over a grand and sensors out the kazoo....
 

highway star

Veteran Expediter
Owner/Operator
Tork converter included on the E350 as well. When mine went out, I was on my way to deliver at Chrysler in Bramalea, you know, over in that foreign country. I limped it home and had it done at a local shop. The price getting a Ford rebuilt or having him do it was the same. He gave me a better warranty and put a shift kit in that made it shift WAY better. It's still doing a great job.
 

D Team Brothers

Expert Expediter
Insurance for a new Sprinter; $2,400., fully covered. Maintenance on a Sprinter is very costly, but $100. a week should cover it unless something big goes and then you better hope your still under warranty. Fuel under 65mph, I average 18 mpg. At 58mph (which I force myself to do) I get 21/22mpg! The question you really need to ask yourself is; "why a Sprinter?" A GMC or Ford gets the van loadsw done, and for the cost of a Spinter you could have a nice C unit with more and better loads. Just my opinion. Jack
 

moose

Veteran Expediter
Benzoid

Very good job on researching .
You where very close on your #'s ,
and now you got it strait.

a good source of a base line for a new business plan can be found at the OOIDA web site. under O/O tools.
its free , and you can either file your #'s into the website ,or download it into your computer and run your own spread **** .
it will greatly help you understand the actual costs of doing business , and the money you 'have to make' to stay in business.
keep in mind that most O/O that go out of business ,are do to "personal"rezone ,not for lack of managements skills :
in other words, the insurance or maintenance will not kill your business as match as an illness or a mortgage ...
it's not going to be the accident, it is going to be a divorce or a pricey long vacation...

the base of every business plan need to incloud things like:
how many days a year are you going to be at work.
(open your calander and mark every family ocation /holiday/Ext..) and start from there.
what is the money you "have to make" just to keep up.
and how mach money you are wanting to make in the next 5-6 years.
set up your goals in advance
and have a realistic goals in mind.
most sucssessfull O/O have a wrighten business plan .
only you can wright your own.

good luck.
and keep asking questions ,you will do just fine.



Moose.
El-Paso
 

BillChaffey

Veteran Expediter
Owner/Operator
US Navy
MPG wise my E 350 is a Diesel and @ 60 or so I get about 22-24 MPG go up to 65 and it drops to about 20 MPG. I saw a Sprinter at the expo in July and it was around $48,000.00 To my way of thinking a good used Straight Truck could be had for that price and $100.00 a week set aside would be appropriate. BUT iv'e only been at this a year and have a lot to learn.
 

TJ959

Veteran Expediter
That $1000.00+ figure for a turbo is a little low. I just had one done yesterday and it cost $1950.00 after my business link discount. Without the discount it would have been nearly $2600.00. That's on a 2005 Sprinter. They are very good when they are running but pricey to repair.
 

OntarioVanMan

Retired Expediter
Owner/Operator
That $1000.00+ figure for a turbo is a little low. I just had one done yesterday and it cost $1950.00 after my business link discount. Without the discount it would have been nearly $2600.00. That's on a 2005 Sprinter. They are very good when they are running but pricey to repair.

Thanks for the update...I think....:eek:
 

Benzoid

Seasoned Expediter
Thanks for all the info!

I'm not anywhere near going out and buying a sprinter and jumping into Expediting (yet).

I'm trying to scope out the most expensive ways of doing a van. (I don't think I can get a CDL just yet... High Sugar- I'm working on it!) If I were to do it, I would likely find a cheap used van and start there. Something I could pay cash for. A sprinter with the sleeper conversion would be the "Dream van" or something like the Rev's Aerocell. But to start, A ford/GM van would likely be it.

Another question... Someone said something about a "C" Truck.
Is anyone hiring / leasing Solo, under 26k, Non-CDL drivers? (Yes, I know about logging and I do have a Chauffeur License) IF so, can you make any money at that? Or what about a Box Van (like an old penske truck?) with a sleeper built in the front of the box? Is that done?

Thanks!

-Mike aka Benzoid
 

TJ959

Veteran Expediter
More and more guys are driving cutaway vans. That is a small High cube van with single rear wheels. They are still under 10,000lbs gvw and the inside is rectangular so its much easier to make interior modifications. Being a high cube, they are american iron so they are easier and cheaper to maintain or repair. These vans have the headroom of a Sprinter but they don't get the mileage. They are also a little heavier than a Sprinter so it's difficult to add much to them and not effect the legal load you can carry. Stiil, I wish I had looked at one before I bought my Sprinter. The thought just never occured to me.
 

OntarioVanMan

Retired Expediter
Owner/Operator
As we've said before...Sprinters are NOT entry level equipment....in the van world...they would be comparable to something like Ateams or TeamC's truck...for the eperienced and the lifers.....:rolleyes:
 

BillChaffey

Veteran Expediter
Owner/Operator
US Navy
I would be surprised if a Cube type Van could get 10 mpg on the highway. I'm sure you could get a "Cube" on a dually Chassis, but then you might have to deal with the 10,000 lbs rule.
 
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