thank you for advice. Have you calculated how much maintenance cost per mile for you? What is average rate per mile right now?

 

My average maintenance per mile ranges from .23 to .52 (I had to do an overhaul on a truck that I had had for 7 years). I am really big on preventative maintenance. When I buy a truck, I look for one that has been overhauled recently, and preferable one with a warranty.

Don't forget, when you are down for maintenance, wheather it is routine (oil change), or major (new engine), you are not working, but your fixed costs (equipment payments, insurance, etc.) are still there and costing you.

Last year (2008) I grossed (to the truck) $1.11 per mile. My fuel cost was 59.67% of my income. Of course that included the period when fuel went up to $4.00 a gallon. In 2007 my fuel expenses were only 48.98% of my income.

As I said earlier, I have been and owner operator for 37 years (and a truck driver for 42). I am semi-retired (LOL), and I don't have to run as hard as I did when I was younger. All of my equipment is paid for, and I don't have any other debts. I can afford to wait for good paying loads, and I am not forced to haul cheap freight (although almost all freight now days is cheap). I pick and choose what I want to haul. If a load doesn't pay enough, I don't haul it!

If you have a $2000.00 a month truck payment, you will forced to haul loads for .80, a mile, for instance, thinking, "Well, at least I am making something." But if it costs you more than .80 a mile to operate, you really aren't making something. You are going in the hole.

As I said in my previous post, if you figure more than $1.00 per mile (to the truck, not gross), you are going to be disappointed when you start working.

 

looks like owner operators dont make more than $0.34/mile (after all expences). seems like bad idea to get in to it right now.

 

You are right. I think you are making a smart decision.

I hate to tell someone who is ambitious not to follow their dreams, but it just doesn't make sense if you are going to lose money doing so.

 

I'm coming up on my 2 year ann. as an OO, and the advice here was one of the resons I have been able to make it work.
I bought a 1995 International with 900,000miles on it for less than $10,000. Other than the extras I added for my comfort,..if I add up how much I have spent to maintain this truck over the last 2 years,..that number is around $10,000 and that includes all new rubber and a transmission. It has never failed to complete a run, and thats even in Montana for most of the winter last season. The lower you equip. costs the more $$ you have in reserve= a better chance to weather this low rate storm.
My first year insurance was over $10,000 this year it is $7,000.
This old International shows no signs of leaving me stranded waiting for the hook, good luck to you.


Also I know this will come to a shock,...but Steve O was wrong,....my solar panels are still firmly mounted to the roof,..no water leaks, my A/C runs for 10 hrs off the batteries, and my cheap foam bed has held up well, and still provides a comfortable night sleep.

 

I saw this thread a few days ago and waited for all the negativity and hoopla to settle down.

This week was the end of my first year as a lease-purchase operator driving a (then new) Volvo 780. My revenue per mile during this period was $1.26 over 133,303 miles. My take home pay after all truck expenses was just north of $67,700 for the year. I show this as a smidge over 50 cents a mile. The company I drive for is mostly reefer, with some dry van.

(Note, the numbers above do not reflect differing taxation a company driver and independent operator face, eg. paying both sides of the social security and medicare tax)

My blog has quarterly results posts showing 13-week snapshots of my past year, and I just finished posting a moderately-sized spreadsheet that you are welcome to view with all of the nitty-gritty load and settlement data.

It isn't easy, but it is doable with the right mindset, lots of research and dedication to safety and efficiency.

Good luck,

Jim