Look at what a long term (10+ yr) return is on a good mutual fund....that is what you should be making on the money that you chose to invest in a truck rather than in that mutual fund.

From a carrier's standpoint:....if an O/O does not factor in the revenue their BUSINESS needs to make (above and beyond the driver pay) then that carrier is getting free money....millions of dollars of free money because the O/O's are financing the carrier's capital equipment needs (ie trucks) FOR FREE!

You have to look at this as a business that needs to be able to stand on its own feet.

 

I don't know that much about vans, but I doubt if being an O/O with a van would put you any farther ahead. If you were willing to flatbed....now that might be different.

 

I haven't really given that very much thought yet.
No, not that I am aware of.

 

I can cover that with either cash or credit.
Is that amount on top of having enough to buy the truck too?

 

Sounds like I should consult a financial advisor on this.
That's probably not a bad idea.

 

[.[/quote]
I can cover that with either cash or credit.
Is that amount on top of having enough to buy the truck too?[/quote]


If it takes credit to fund your emergency fund, then you don't have an emergency fund. The idea is to handle an emergency expensive repair without accumulating debt.

Yes, the 10,000 is on top of the price of the truck. I am currently saving 30,000 to start as an O/O. 20,000 will buy my first tractor and 10,000 for the start-up emergency fund. The first order of business once I start will be to build the emergency fund even bigger ASAP.

 

When you have an emergency fund, you are preparing for the worst scenario. We all hope for the best, but you don't prepare for the best. If you do, it is likely you will put yourself in a real bind. If you start with a good nest egg and keep adding to it, you will have the money to pay cash for your next truck, when the time comes to trade, if you have been fortunate enough to not have any major expenditures. If you don't have big truck payments, you can afford to sit at the house when things are slow or rates are low. If you have big truck payments and don't have a good emergency fund, then you will feel that you need to continue running, regardless of how much a load pays. Turning the wheels is not necessarily making a profit. 8)

 

'you'll shoot your eye out kid"

 

That's funny on a few different levels. :lol: :lol:

 

That wasn't meant to sound like I would neccessarily use use my line of credit as my emergency fund.

I do have some other assets that I would sell off first and those should bring me more than enough to buy a decent truck.