"Rainbow" (rainbeaux)
02/01/2019 at 11:41 • Filed to: None
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14|
"Rainbow" (rainbeaux)
02/01/2019 at 11:41 • Filed to: None | 0
| 14 |
So, as you might know, I want an over-the-road cargo van job. The good news is they DO exist, primarily for expedited freight, and a lot pay over $1,000 weekly. The bad news is nearly all of them require owner/ operators. So... is it worth it to try to get a loan for 20 -30k so I can get a used Transit/ Promaster/ Sprinter? It’s a huge risk, but it might be a necessary step toward doing something I can actually enjoy. In the absolute worst case scenario, I can use the van for my junk removal business idea.
Tripper
> Rainbow
02/01/2019 at 11:53 |
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I’m DO IT type of guy almost always, unless the idea is horribly bad. So DO IT! going 20-30k on a vehicle isn’t that much of a risk. If goes bad or you decide it’s not for you, you can sell the vehicle and recover most of your investment. I bet it will go well for you and it’s what you want to do, the choice is clear!
E90M3
> Rainbow
02/01/2019 at 11:55 |
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So... is it worth it to try to get a loan for 20-30k so I can get a used Transit/Promaster/Sprinter?
It depends on your debt/income ratio, if this is above 0.5 then I would say it’s a bad idea.
Boxer_4
> Rainbow
02/01/2019 at 11:58 |
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Based on the stories around here, don’t get a Promaster!
WilliamsSW
> Rainbow
02/01/2019 at 12:01 |
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You really need to crunch the numbers on what you’d make after fuel, repairs, maintenance and the loan, but if that works and jobs are plentiful, go for it!
Based on some of Oppos Promaster experience, I would avoid that like the plague though.
The Dummy Gummy
> Rainbow
02/01/2019 at 12:01 |
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Secure the job before investing the capital.
ITA97, now with more Jag @ opposite-lock.com
> Rainbow
02/01/2019 at 12:02 |
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Make sure you factor an actual commercial liability insurance quote into the calculation. When I was considering setting up a legitimate hot shop operation before I was 25, I got insurance quotes in the range of $800/month back in 2007ish (when a normal full-coverage personal insurance policy for the same truck cost me around $10 0/month). This was from the few insurance companies that would even quote an under 25 driver. The insurance was the killer cost . An annual DOT inspection, DOT number and annual IFTA stickers were all relatively minor matters to take car of.
Fuel mileage will be your most important purchasing consideration in terms of profitability .
nermal
> Rainbow
02/01/2019 at 12:02 |
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There’s more to starting a transportation business than buying a van and posting some sexy pics of it on Craigslist.
Make sure you look into requirements for getting a DOT #, insurance, physicals, etc. The costs add up bigly.
Figure out all of your fixed costs first. Loan payments, insurance, etc. Then figure out expected cost-per-mile for fuel, maintenance, etc . That will tell you how much you actually need to do to actually make $$$.
Run the numbers from a worst case scenario. If everything works out, do it.
facw
> Rainbow
02/01/2019 at 12:02 |
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Definitely not a job I’d want, but if it looks good for you, I say do it. If it is terrible, you probably won’t lose much money on a used van. You can look at other used prices to figure out how much you’d be losing to depreciation, and see if it makes sense. Also shop around and see what commercial insurance will run you.
E92M3
> Rainbow
02/01/2019 at 12:31 |
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Do it! You can write off to $25k in the first year for a business vehicle, or you can depreciate it over 5 years. Worst case y ou could al ways sell it if it doesn’t workout. O r use it for junk removal, detailing business, sign up to del iver hospice/medicaid equipment (beds, wheel chairs, walkers, shower chairs, etc. ) rent it on Turo for people moving furniture, etc... The posibilities are endless. Your boss will never pay you enough to live in his neighborhood, so why not try being your own boss. You can always go back to work for someone else in this job market.
GoodIdeaAtTheTime
> Rainbow
02/01/2019 at 12:49 |
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Find a company that supplies a vehicle before deciding to purchase your own. Maintenance and upkeep on Sprinter’s is expensive. I am sure the Promaster and Transit are not far behind. You will get paid less, but aren’t stuck with repair bills in the thousands of dollars. Largest estimate I quoted was a little over 12,000. And they were required to fix it, DOT regs and all that . All of them have common issues, and short warranties. So look into that before you purchase. Besides, you don’t want to purchase something you hate driving ;)
blacktruck18
> Rainbow
02/01/2019 at 14:19 |
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Hey, I know something about this!!! Whatever you get, get a tall roof version (not sure the proper name) of whatever you get. I work in transportation and deal with expedited shipping on a daily basis.
At least a couple of times a week we will have an expedite that will have the wrong dimensions on the paperwork and we end up needing something tall and we end up paying a ton of money for something at the last minute because we need the height.
That being said, have you applied to any companies yet?
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Rainbow
> blacktruck18
02/01/2019 at 14:56 |
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A few, but only one supplies the vehicle. Haven’t heard back yet, but hopefully I’ll get it.
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blacktruck18
> Rainbow
02/01/2019 at 15:24 |
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Based on my limited knowledge, I would say try to find a company that works with Just-In-time manufacturers. I deal with a couple of Tier 1 suppliers for OEM’s and 1 OEM. Those companies are always moving quite a bit of freight and get paid pretty well for it.
Where are you located? I can dig through our system at work and let you know about a few companies in your area.
As Nermal said earlier the process to start with your own van is kind of difficult. IMO, I would start with a company that you don’t have to be an owner/operator, just to make sure you enjoy the work and to learn the in’s and out’s of it. After that, I would start thinking about getting your own van and all of that.
Another option in the same field could be a courier, there are quite a few companies that have people that just fly around and deliver small parcels to factories and stuff like that. You would be amazed the number of people who cannot grasp “get the box, get on the plane with the box, get the box to the factory.”
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Rainbow
> blacktruck18
02/01/2019 at 15:54 |
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I was a courier for a while, but I didn’t like it. I had to use my own car, I wasn’t reimbursed for gas in any way , and the pay was just terrible because it was all local deliveries that paid like $5 -15 each, and then I only got 65% of that.