Well worth it, got a western star glider last year and is working out great

 

He's using Canadian funds and distance. Need to convert that to us dollars and miles.

Works out to like 120k miles and the funds about $198k US dollar.

 

I don't think it is a good idea to start out with a new truck. Payments will be much higher on new and lower on used. There are also a lot of problems with the newer emissions. You need low overhead and reliability. I would suggest looking around for a good used truck and see how you like being an owner operator before going out and buying new. If you find that you don't like being an owner operator, it is much easier to get most of your money out of a good used truck than one you purchase new. I believe in allowing a business to pay it's own way. One consideration should also include what would happen if you lost the dedicated run. Would you be able to replace the run should something happen? When preparing a business plan, I always look at the worst that can happen. Too many new or potential owner operators only look at their plan using the best case scenario. That is a mistake most regret. You have no control over market conditions or the economy. If things go badly, you want to be able to survive. That can be difficult with new equipment. Many who had big equipment payments when the economy crashed a few years ago, did not survive. Many of us with many years experience struggled but were able to survive, however, most of us did not have the big payments. Remember, you can always trade up once you get your feet wet as an owner operator. You may find that you don't really want a new truck once you get to making money. Many of us are holding on to our older equipment rather than buying new. Older trucks tend to be more reliable and require a smaller capital investment. Set up a spreadsheet and play with the numbers. OODIA has a spreadsheet you can download which includes most of the expenses associated with running a truck. It is a good starting point. You can alter the program as needed. Owner Operator Independent Drivers Association, Trucking Association.

 

Very helpful information Thank You!

 

I went to a bank with my business plan and he questioned what I was doing and whether or not I knew what I was getting into. He had consulted an "Expert" and that expert felt I was not dealing with reality. Stated my income was low and my expenses were high. I asked the banker what the issue was if a guy planned for worst case scenario and TRIED to make the business plan fail. When I found a situation that met that requirement, I went with that or slightly better. Figuring real life would only be better.

Two+ years later, I am not doing bad. I can't say things are stellar, but to be able to pay cash for road repairs is sufficient and being able to plan major expenses help.

I never was able to figure out how guys are making it based on $1.70 per mile income and a $2300+ truck payment and paying $1500-1600 a month trailer rent.

 

The company that i'm with has so much work I will be busy for the next 30+ years. They have contracts with major Nickel and copper producers such as Xstrata Nickel and Vale. If there is no loads to be delivered then there is local work around the city delivering raw Mine Aggregate to the Mill for processing. The run that I would be on is delivering Copper Concentrate to the smelter which is approximately 400km from home terminal.

 

Rule #1.

Someone will ALWAYS underbid you and you will loose your rate.

Rule #2.
See rule #1.

 

Yea there's always that possibility too but it's not me doing the under bidding. Our competition is not local so the mines steer away from them when it come's to the contracts. For example the company that had this contract for 25 years now work for us so good chance we got it till someone takes over if they can supply the mine with the equipment. And if that happens ill just follow the contract I will be independent. If you want check out there website at Day Group very versatile company

 

I need to be tottally independent to get in with this company Plates, Insurance, IFTA thats all at my own expense.

 

Do you? That's the whole point "need" or "want"... Personaly, i don't see much difference in the income in your case scenario. Yes, it's a lot of money, but it's just a cash flow mirage. Don't get me wrong, it's kinda hard to make an analises from so little info, you might do well, and will find a whole new meaning in your life, but that's not a guaranteed. If it's not broken, why fix it?