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Showing posts with label Buying Trucks. Show all posts
Showing posts with label Buying Trucks. Show all posts

Friday, February 3, 2017

These Practices Cause Owner Operators To Fail

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Some owner operators fail, that’s just a plain fact. Sure, some guys make it and bring home the bigger paychecks, but most truckers fail. Becoming an owner operator involves a lot of risks and precise planning, and they guys who don’t make it, usually don’t due to reasons that can easily be avoided. 

Mistakes Made By Owner Operators


The owner operators who fail are generally too big for their britches. They think they can do everything themselves. Even though it’s true that will start out doing the majority of work yourself, it’s best to get the advice of a financial advisor or an accountant to figure out the best plan for your business before jumping in. A man with a plan is generally smarter than the guy without one.

Plus, you shouldn’t be too shy or prideful to ask for advice. Successful owner operators probably know a few tips and techniques about the business that you haven’t heard about before. Why not ask them a few questions to see if they can help you climb up the ladder?

Eventually, as your business grows you’ll get to hire employees! Instead of doing everything yourself, that you probably won’t even have time for, it will be best to hand things off to your trusted team.

2. Speaking of time, a lot of owner operators who fail simply didn’t consider the amount of time the job requires. You’ll be gone a lot more. If you don’t want to drive extra overtime hours and want to be around for more school plays and baseball games then you might want to stick to driving for a carrier.

A lot of owner operators fail to think about the strain it will put on their family when they’ll be gone more, and relationships are tested. Be sure to speak with your partner about being gone more and how to stay in communication with them. This way you won’t end up like the people who had to choose between their new business venture or their relationship.

3. A quick way to find yourself up the creek without a paddle is by not making a budget. If you live paycheck to paycheck you could quickly end up on missing some bills or not having enough cash to pay for dinner. Know how much you’re spending on fuel, insurance bills, your truck, and more a month, so you’ll know how much to set aside for your meals, personal pay, and more. Tracking software like TruckLogics can help you keep up with all of your finances.

Also, a lot of the time new owner operators don’t set aside any money for emergencies, and that’s just not good because things happen. Trucks break down and you’ll need to be able to pay for the repair. If your insurance will cover the repair you’ll still need money to float you by while it’s in the shop.

Keep in mind that being an owner operator isn’t the fast way to success. It takes months and maybe even years to build yourself up as a reputable owner operator who brings in the big bucks, and even then some months are just slow. Always keep an emergency fund set aside for the slow periods.

4. Some people just buy the wrong truck. They get a brand new truck up front that’s all shiny and awesome, but then crumble when they aren’t bringing in enough cash to pay for the bills that come with it.

They don’t explore all their truck options. For example, leasing generally comes with no down payment and lower monthly rates, so it can help owner operators get started in the beginning. Although, at the end of the agreement if you don’t lease to own you won’t have your own truck to trade in towards getting a new one.

If you want to own your own truck avoid getting a lemon. Lemons are new, cheap trucks that don’t have a good turnover rate. You’ll want a truck you can quickly sell to make some of your money back with, in case you find out that owner operating isn’t for you.

Older trucks that are built sturdier are often more fun to drive and have higher turnover rates. They can be great to start out with until you grow your company enough to comfortably buy a new truck.

5. Owner operators who fail are low maintenance. They don’t take care of themselves. They cut corners and drive even if they haven’t gotten enough sleep. Some truckers don’t take their personal health into account and constantly get terrible options from fast food chains, smokes, and don’t even think about making an effort to work out. You have to be healthy and full of energy to put in the time and work that being an owner operator requires.

They also don’t take the time to maintain their trucks. Skipping out on regular maintenance like oil changes and changing your brake pads can wear out your rig pretty quickly. You have to take the steps to winterize your truck, tune it up, check all the fluid levels, and more in order to squeeze all of its value out of it. 

Don’t Fail!


You can make it as an owner operator, we believe in you. Just make sure you don’t make simple mistakes that can easily be avoided. Make a plan for your business, ask the experts and tell your family what you’re up to. Be financially responsible and know where your money is going. Also, don’t forget to take care of your truck and yourself.

For more trucking tips visit ExpressTruckTax.com, and please share your comments about why owner operators fail in the comment section below.
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Friday, January 27, 2017

The Issues With Leasing

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Do you hear that? It’s the call of the open road, with miles of freedom. It would just be great to be an owner operator right? With the ability to schedule your own dispatches, and to drive without little company policies to follow or a manager constantly watching you to make sure you don’t make mistakes? Well to do that you need your own truck to operate, and one way to do that is by leasing one.

A Little About Leasing


Leasing is basically another word for borrow because you’re using someone else’s equipment. Only instead of ‘borrowing’ the semi truck you’ll be paying to use it. In order to lease a truck, you’ll sit down in an office and agree to a contract with set monthly payments over a certain amount of time. The average lease lasts about three years, then you’ll be on your way, driving a truck that someone else owns.

Many truckers turn to leasing because it’s a quick option to jump in a truck when their credit isn’t in order to buy a truck or their finances aren’t in order, because leasing companies often don’t turn those with bad credit away, and don’t require a down payment.

It’s seen as a good way to start driving as an owner operator while you can get your finances together and credit score up to buy your own truck. However, there are some negatives with leasing to consider.

The Downsides of Leasing


When you lease a truck, it’s not your own. Now you may be comfortable with that, but you also might not be. Part of the call of the open road is the romance of being attached to your truck. Not to be mushy or anything but in the automotive industry people really love their vehicles. Will you be able to give your truck up at the end of the agreement?

Plus, when the truck isn’t yours you can’t modify it. Lease contracts will prevent you from installing lift kits, or the latest technology to make your life easier as a trucker.

If you think that leasing is your way to get into a brand new truck you’re wrong. Just like with buying a newer trucker, leasing a newer truck comes with higher monthly payments. Chances are that if you’re trying to start your business you’ll be in an older truck with a lower monthly payment at first.

Also, leasing isn’t a way to get out of higher monthly payments due to poor credit. Your monthly rates will still be higher when leasing if you have a bad credit score.

Speaking of monthly payments, did you know that leasing companies have protecting their vehicles from depreciation in their best interest? So, they want their trucks to be perfectly repairs and maintained. will add on a maintenance fee to your monthly payment. They’ll also add in the cost of insurance.

Don’t forget to watch out for lease contracts that have step up agreements, meaning that over time the amount you pay will increase.

If you buy a used truck you can use it for its trade in value to help you out with your down payment on a new truck. However, with leasing you have to give the truck back, leaving you with nothing to trade in.

Sure, you can lease to own, but generally, at the end of your leasing contract you’ll end up paying more for the truck than you would have if you would have simply bought the truck up front.

Is Leasing For You?


Sometimes leasing is the right option to help guys get their business started. As their business grows they can buy their own new or used truck or continue to lease. Speak with a financial advisor to figure out your best option for your current financial situation and business plan.

For more trucking trips visit ExpressTruckTax.com and please share your thoughts about leasing in the comment section below.
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Friday, January 6, 2017

Do You Have Time To Be An Owner Operator?

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The ultimate trucking dream is to, of course, become an owner operator. I mean heck, who wouldn’t want the freedom of planning their own hours and routes, without a supervisor breathing down their neck. The answer to that question is simple, it’s the guys that simply don’t have the time.

The Extra Hours Owner Operators Put In


When it comes down to it owner operators simply put more time in on the road. They drive farther routes and often end up racking up a lot of overtime. Sometimes they only sleep about six hours a night before returning to the pavement. Can you safely operate a truck on less sleep? If you like feeling well rested you might wanna stay on the company dime.

Plus, more hours on the road mean more hours away from home. Do you have a wife, girlfriend, kids, or even a pet back home that you don’t want to leave? Sometimes relationships become strained with extra hours spent away. If you want to be home with your loved ones, then, by all means, be with them.

If you have a demanding schedule, like custody of your kids every other weekend or a pool league that meets once a week then being an owner operator might make you miss these agreed upon activities. Not only will you have less time away from home, but you’ll have less time for personal activities like watching football games, working on your bike, or catching up on the latest action movies and video games.

Also, it takes awhile to even get started as an owner operator. The process isn’t for the impatient. You have to get a plan together and go to meetings with financial planners to see the proper way of starting your business. It involves a lot of waiting and talking. Then you have to try to get loans and depending on your credit, that could be tricky. You might have to set up a few meetings with different banks and wait to talk about your loan options.

Becoming an owner operator involves a lot of time before jumping in a truck and taking off down the road. In fact, it may take a long time to even find the perfect truck for you. With so many options to consider from new to used, buying or leasing, or leasing to own you need to consider what will work best for your financial situation in the beginning.

When you finally have the right truck you have to put in more time to maintain it. The goal is to give every single pennyworth out of it, because with no truck you have no business. You’ll have to go to the dealership for regular oil changes, check the oil filters, replace the belts, and more. You’re gonna have to keep your truck clean and smelling nice, as it’s basically going to be your office, so treat it as well as your first born son.

Then when you finally take the leap to becoming an owner operator it can take years to become established. You have to spend time on the phone to build long lasting relationships with shippers. You have to have a website to professionally represent yourself and take the time to build an online presence on social media.

You also have to get good at being an owner operator which takes practice. It takes a while to learn how to plan productive routes with pick ups and drop offs near each other so you aren’t hauling an empty trailer. You also have to learn how to be a good salesman to sell yourself, and it’s also good to learn how to save money here thereby becoming a fuel efficient driver or with budget planning for meals and supplies.

If You Have The Time Go For It


Why wait? The perfect time for getting your plan together to become an owner operator is right now! As long as you have the time to make the right plan, get the right rig, and can handle putting in a lot of extra hours you can enjoy the trucking freedom of being your own boss.

for more trucking tips be sure to visit ExpressTruckTax.com, and share your thoughts on be a time consuming owner operator in the comment section below. 
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Wednesday, December 28, 2016

Costs to seriously Consider When Buying A Rig

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Whether you’re becoming an owner operator, a fleet manager looking to expand your operation, or tired of leasing, it might be time to buy your own rig. However, there are a few hidden or not so obvious costs to consider. Be sure to consider the following costs that go into buying new or used tractor-trailers before busting out your checkbook.

Costs to Consider With New and Used Rigs

First things first, you’ll need a down payment. Spending between $10k to 40K on a new or used rig will help you get a lower monthly rate. That’s another thing, every month you’ll have a big new bill in the mail!

When buying a new truck the monthly bill will be there for years hanging over your head. Buying used will give you more of a short-term investment that you can pay off in a quicker amount of time, with a possible lower monthly rate.

Did you know that new trucks come with fancy warranties? There are even extended warranties! They can really save your butt if you need a repair early on, but they also can add a lot onto your monthly tab.

Warranties on older rigs cost a bit more, because obviously and older rig will need more maintenance than a newer one. Say you’re interested in a rig with over 500k miles on it, it will hard to get a detailed report about it’s driving history. At least with a new rig, you know every detail about it. However, with an older rig the warranty payment may balance out with the cheaper monthly payment.

Although, keep in mind that even though older rigs are sturdier they usually have more issues and bigger problems. For example, most older truckers need a total engine rebuild around 700,000 miles! Plus, are the axles, tires, transmission, suspension, and more in good shape?

Have you considered insurance? Legally you need it to keep your truck on the road. Insuring a brand new rig will add more to your monthly bills. Driving without it could leave you with huge penalty fees, especially if you’re involved in an accident. Generally, trucks with cheaper values have cheaper insurance rates, but if you have a bad driving record your rate could skyrocket. Watch out for those speeding tickets!

This may seem obvious, but trucks with all the bells and whistles cost more. Do you want an automatic truck? Do you make overnight trips? If so, do you want a medium-sized sleeper or one with an extended roof?

As mentioned above, older truckers are often built a bit sturdier. This comes in handy with the resell value. If you’re looking for a truck to start out in then make sure you get something you can resell later when you’re ready to upgrade. Avoid a cheaply made new truck that you will have trouble flipping later.

At the end of the day, you’ll still have to consider all of the maintenance costs. Gas, which is cheaper in newer, more fuel-efficient rigs can really add up. Maintenance like oil changes and tune-ups, taxes, filing fees, repairs, and more may cost more on an older rig too.

Don’t just head down to the lot and pick a pretty color, research your options and go with a list of what you’re looking for in a new or used rig to make sure that you get the best option for your current financial state.

Get That Rig and Get to Trucking!

If it’s the right time to get your first new truck, a new to you truck that’s used, or upgrade to a better truck then go for it! It’s a great feeling to go down the road in something that’s totally yours. Just make sure that your finances are in order and you take the time and consideration to find your perfect match.

For more trucking tips visit ExpressTruckTax.com, be sure to share your truck buying experiences in the comment section below.
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