O/O's
#3
11-25-2008, 03:16 AM
Ideally, you should have enough for an engine rebuild and 3-6 months operating expenses. The cost of rebuilding an engine can run from about $10,000 for a Cummins to over $18,000 for a CAT. In business it is always best to prepare for the worst that could happen. In this business that usually includes enough capital to pay for an in-frame. A rear end, transmission or engine could go out at any time regardless of the age of your tractor. If you get lucky you may not have either until you build up some money. There have been those who have started on a shoe string and made it, but those are not the norm. It is best to have somewhere from $10-20,000 plus operating expenses. Keep in mind that you can also blow a tire or two. Tires can run as much as $500 or more each on the road. If you lease to a major carrier you could buy tires on their national tire account for about $350 or so, depending on brand. Even if you buy a truck that still has warranty, some items may not be covered. You need to make sure that you have enough money set aside to so that you can make your truck payments. Things happen in this business. You need to prepare for as many contingencies as possible.
You will never be able to plan for every contingency that can happen. You can prepare for most of them with proper planning. Knowing your approximate operating costs and of making major repairs will help, as will knowing how much revenue you will have coming in.
#5
11-25-2008, 03:10 PM
and i was thinking 5-10k would do, im glad i asked this question
it may do. & it may not. there is a risk/reward ratio.
#7
11-28-2008, 06:47 AM
You don't need that much money. People make it sound like your engine is going to blow in the first month. You may run for many years without a major breakdown. It's all a gamble.
An engine rebuild from a Detroit dealer for a Series 60 is $5,999. $7,998 with a new cylinder head. $9,399 if you want rocker arms, thermostats, oil regulator and relief valve. $12,999 if you want everything plus a new turbo, injectors and water pump. I have the brochure prices in front of me. You really just need money for fuel and hopefully you can save enough money before anything major comes along.
#8
11-28-2008, 08:02 AM
You don't need that much money. People make it sound like your engine is going to blow in the first month. You may run for many years without a major breakdown. It's all a gamble.
An engine rebuild from a Detroit dealer for a Series 60 is $5,999. $7,998 with a new cylinder head. $9,399 if you want rocker arms, thermostats, oil regulator and relief valve. $12,999 if you want everything plus a new turbo, injectors and water pump. I have the brochure prices in front of me. You really just need money for fuel and hopefully you can save enough money before anything major comes along. :rofl::lol2::rofl::lol2: Ok SteveBooth.......
#9
11-28-2008, 12:31 PM
$13k for a complete engine? Really?
One of our drivers ran his truck without oil (turbo pressure line blew). It got so hot that the engine seized up and turned the dipstick blue. The cost from Freightliner? $21,000. I know that 100% because I'm the one that delivered the check and picked up the truck after it was done. Then, less than 2 weeks later the transmission ate itself. There went another $5k.
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#10
11-28-2008, 01:08 PM
$13k for a complete engine? Really?
One of our drivers ran his truck without oil (turbo pressure line blew). It got so hot that the engine seized up and turned the dipstick blue. The cost from Freightliner? $21,000. I know that 100% because I'm the one that delivered the check and picked up the truck after it was done. Then, less than 2 weeks later the transmission ate itself. There went another $5k. |
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