It Depends On....

[dhalltoyo]

The state of cargo van expediting as I see it today.

Do I like what I do? Of course, I enjoy the business.

Can you make a living as a cargo van owner/operator?

It depends on your particular needs. Most of those who tout the positive aspects of cargo van expediting are folks who have a secondary income. My hat is off to those who stuck it out for 20 or 30 years in the same career and now are enjoying the fruits of their labor. To those folks, I say, keep on trucking!

Hence, can a non-retiree make it in this industry? Yes, but the criteria necessary is so stringent...very, very few ever really make a decent living. Oh, you might make your truck payment and cover your expenses, but I have not met one owner/operator who was actually putting any money toward their retirement and few can even afford medical benefits.

I have only met one cargo van owner/operator who fits the bill of being a financial success. So how does he do it? First, he is single. Second, he has no family. Third, his home is his van. So, how many of you are ready to live in a 32" x 70" bunk behind the seats? Well, at least you won't have a rent or mortgage payment. And think of the money you'll save on electricity, gas and water! Wow! What a deal.

Conversely, I have a friend who has been an O/O for 5 years. He had a straight truck for two years and has owned his cargo van for the past three years. He has a nice house, but he owes back taxes on the property. He makes his truck payment, but he owes the IRS and is on a payment program. His truck now has 260,000 miles on it and he has two years of payments left to go. One engine or transmission failure would probably cause him to file bankruptcy. He has no medical insurance and no retirement fund.

For all of you younger married guys, especially those with children, I would offer this suggestion. If the asphalt appeals to you, go get your Class A CDL first. Make a commitment to drive "Big Trucks" for at least 2 years. Most of the big companies providing free driver training will require that you remain employed for 12-18 months to defray the investment of training you.

Yes, you probably will start your career as an OTR driver, but a good driver should be able to find a regional or local run within 2-3 years. My daughter has a friend whose husband did exactly as I have suggested and after 2 years he is now home every night.

Save your money and when the kids are all grown, and you no longer have a mortgage and you have about $500,000 in a retirement account...then buy a cargo van and then enjoy life at a little slower pace.

 

[cheri1122]

Two questions come to mind: Do you not consider TerryandRene to be successful?
Should this have been posted in either Newbies or Newbies FAQ? It's a truthful evaluation, from your perspective, but mostly useful for the Newbies & wannabees, IMO. Anyone who's been out here more than a few months is already aware of the reality of which you write, but those who are considering expediting, (particularly in a B unit) should read this.

 

[highway star]

Good post Rev. I couldn't agree more, and that comes from 8+ years in a cargo van. This would be a good one to anchor in Newbies for a while.

 

[LDB]

Excellent post by someone who knows the van side of the business. Anyone considering van expediting should pay close attention to what it says. Anyone who's been at it for some time needs to also pay close attention to the part that says those putting in years are not often putting away anything for retirement.

 

[OntarioVanMan]

Sorry Dave but I beg to disagree....to "some" points.

A measure of ones success is only for the one involved to measure....

$500,000 in retirement savings?

I am happy...bills are up to date, debt ratio is low, no mortgage, some medical coverage and a growing retirement....If I want it I'll go buy it...no stress...I am satisfied with this. Content even.

Other then that I agree that one should take very cautious steps when entering this profession....look before you leap and then look again.

 

[dhalltoyo]

Ok, sorry OVM.

You are only the second cargo van owner/operator that I have ever met that was financially successful without the benefit of additional retirement income. Make sense? Nuff said? Get the picture?

And yes, without a doubt Terry and Rene do a fine job. I have picked Terry's brain a dozen times for ideas. They are fine people and I respect their opinions and value their advice. But I believe Terry has retirement income from a previous profession; quite possibly the Coast Guard. The crux of my post centered around those who are owner/operators and this craft is their only source of income.

The reason I did not post it in the Newbie Paradise forum is that I believed it more directed toward those owner/operators whom I have met recently; folks who have duped themselves into believing that they are financially successful. Just like the friend I referenced in the original post; he, and many others, assume they are finacially sound. An assumption based upon the fact that are meeting their immediate financial obligations, but they are not addressing the future obligations.

When that crankshaft flies apart...there comes a day of reckoning.

There is a payday...someday.