Are my numbers right?

Fisherman · Mar 25, 2019

I have been driving a Ford Transit Van for a fleet owner for about 5 months. I am based in Ontario and do mostly cross-border work into the US. I would like to become an O/O by the end of this year. I've been keeping track of revenue and expenses so that I can a good idea of what I can expect to make as an O/O. Here's what my numbers look like so far.

I am using US dollars because I assume that is what most of you are familiar with.

I average 1800 loaded miles a week. I hear that most van O/O make .85 cents per loaded mile. This brings my gross to $1500 a week.
I will try to buy a lightly used van. I figure that my van payment will be about $100-150 a week. Same for insurance. Let's say both put together is $250.
I estimate fuel is about $400 a week. And I would estimate maintenance averages to be $50 a week. And tolls and border crossing fees also averages $50 a week for me.

$1500 - 250 - 400 - 50 - 50 = $750 usd a week (or about $1000 canadian dollars in my case).

Are my numbers accurate?

Also, will I have to pay any taxes, or will I be able to write off enough expenses to the point where I looks like I have no income?

Moot · Mar 26, 2019

Fisherman, is the feet owner you drive for leased to a carrier? If you buy a van will you put it on with this carrier? Your numbers are probably on the right track but a bit confusing. You listed average loaded miles but not all miles. Fuel and maintenance costs are generally calculated on a per mile basis. Insurance rates can vary like crazy. Usually a better deal can be had going through your carriers insurance.

The only advice I can offer regarding Canadian income tax is get a tax accountant familiar with trucking or at least small businesses.

Fisherman · Mar 26, 2019

Moot said:
Fisherman, is the feet owner you drive for leased to a carrier? If you buy a van will you put it on with this carrier? Your numbers are probably on the right track but a bit confusing. You listed average loaded miles but not all miles. Fuel and maintenance costs are generally calculated on a per mile basis. Insurance rates can vary like crazy. Usually a better deal can be had going through your carriers insurance.

The only advice I can offer regarding Canadian income tax is get a tax accountant familiar with trucking or at least small businesses.

Yes, the fleet owner I drive for is leased to a carrier. And when I buy my own van, I would likely put it on with this carrier.

I'll try to clarify my miles and rates. I believe my carrier pays 0.90 (us dollars) for loaded miles and .20 for DH miles. I should have said that my TOTAL miles are about 1800 a week. And when I look at my numbers, I would say that the rate averages 85 cents a mile for all miles.

Thanks for your response!

terryandrene · Mar 26, 2019

Typically, established carriers compensate contractors on a percentage of the tariff. Fleet owners most often compensate their drivers on a 60/40 or 40/60 percentage basis. I would think that your owner would be helpful with the information you need to transition to vehicle ownership and a lease as an owner/operator for his carrier. There may even be a referral bonus for your owner if he recommends you to the carrier. This might be a good time for you to start a relationship with a recruiter from your carrier. They can be helpful with the figures you seek and be there for you when you're ready to make the move.

brokcanadian · Mar 28, 2019

Fisherman said:
Also, will I have to pay any taxes, or will I be able to write off enough expenses to the point where I looks like I have no income?

This is Canada. Of course you will pay taxes, we owe taxes after $3000 income. You MAY be able to zero it out depending on personal and family tax credits. If you have enough business deductions to look like you have no income, guess what, YOU HAVE NO INCOME

About your financing: you're either getting a 5 year old van or financing over 8 years with that price. (Apologies if you quoted that in USD) Make sure you multiply out your average miles driven with your expected vehicle life.

And you completely forgot about vehicle replacement (that means in addition to paying your payments, you make payments towards the next van too in your bank account...that can be your emergency fund or down payment but you are not cheaping yourself out and getting caught broke in a slow period or vehicle failure)

With that in mind personally I need 0.93c a mile with a paid for 2005 Sprinter. Your mileage may vary, thats my happy spot. (All miles)

Good luck!

Oh, and quote insurance first unless your company provides it by fleet. Totally possible to not qualify at all, at least in Ontario without commercial experience...