Cargo Van Exp Help please!

[Stinky]

I have been drving OTR for 7 years and I am just tired of the BS. I love the road, but all the other crap is getting stupid.

I have been considering cargo van expediting for a while. It seems like any other aspect of trucking. Some guys just don't succeed, but the smart ones do.

I would appreciate some straight info. What can you reasonably clear a year after expenses? I plan on paying cash for my van. How much home time do you get?

What are the best companies? Based on my research so far it seems Landstar and Panther are the two best. Any suggestions, comments?

Thanks for the help guys.

Stinky out!

 

[terryandrene]

Phew!

Cargo van expediting has been a great thing to do, in the past. It's still doable but there are too many vans competing for too little freight for anyone to forecast how well a newcomer would do. Where your home is plays a role in your financial success due to the high cost of deadhead fuel these days. Since your first question was related to income, you might see more disappointment before the joy of cargo vanning sets in.

Take the time to come visit us at the Expedte Expo July 25 - 26 at the Roberts Convention center, MM50 I-71, Wilmington, Ohio. A visit to the two day event will help you decide on a carrier, a vehicle and a tour of expedite duty.

 

[aristotle]

Don't come into this biz undercapitalized. Keep cash in reserve. You will need it, even in a van.

 

[Turtle]

"It seems like any other aspect of trucking."

That's easily the biggest, and most common, mistake people coming into expediting make. The reality is, expediting is the least like any other aspect of trucking, particularly in a van. It's more like hunting from a duck blind than it is trucking. You have to be at the right place at the right time, but mostly you just sit and wait, admiring your high dollar gun.

 

[dhalltoyo]

Ditto!

Don't pay cash for the van!

You can buy a GM van at 0% interest, so be wise and use their money.

Take yours and put it someplace where you can get a decent return.

Maybe we should get bigger guns, eh Turtle?

 

[Turtle]

I dunno, I paid cash for my first van, then put about 75% down on this one, which will be paid off in a few months. I abhor a car/van/truck payment. If you can get a loan at zero percent interest, great, but not many people can. I prefer to have it paid for asap, that way, instead of making payments, I can, well, not make payments.

 

[FIS53]

In answer to the original question... it is hard to make decent money in a van. in my case I'm doing over 2000/month clear after truck costs but the business is slow. Fortunately I'm with a smaller company which for me has worked out better than the larger ones. Less competition, more variety on jobs, quite a few high paying short haul jobs. I'm home more than usual for this business but for me that's ok. I'll work with it.

Yes no vehicle payment would make the expense level much better and easily more affordable for repairs when needed. The trick is to get enough runs to have the money coming in so that you can bank some for those future repairs. It seems everytime I get a little ahead something breaks. Like this past week daughter blew tranny in my car, not her car, my car. Yeah not a business expense but hey still an added one.

This is a poor time for the business but those who can hang on should come out of it with a decent potential for income as things get going. I think we're in for a lot of changes in the coming months and years.
Rob.

 

[Moot]

My first van I put a substantial amount down and went with a 30 month loan. 6 months after buying the van my wife needed a new car. Went with a 60 month loan on that. Had I done the 60 month load on the van, I could have at least deducted the interest. Oh well.

As for the zero interest plan, be careful. You may have to waive a rebate program to qualify. And there are some pretty hefty rebates being offered to potential pickup truck buyers. Not sure how the rebate situation is for vans. Make the best deal you can first and then talk finances.

Generally speaking the more home time you want or need the less money you have at the end of the year. Unless you live some place like Chicago, I don't but seem to deliver, pick up or pass through there very often. I costs money, your money to dead head home.

If you require a steady dependable income then this is probably not the business for you. There are so many variables that it would be difficult to give an answer as to yearly income.

 

[dhalltoyo]

Moot has a good point.

Not knowing what you would qualify going through a commercial lending institution you may be better taking the rebates as opposed to 0% GM financing.

One thing I have discovered is that most banks want to treat a cargo van like a big truck simply because it is going to be used in a commercial application; hence, the rates soar! I had one bank tell me 7% when GM was offering 3.9%.

With GM you still qualify for the Business Choice discount regardless of where it gets financed. I got $1200 for the Aerocell body upgrade. Make sure you deal with the fleet manager at a dealership that actually has a commercial truck department. A floor salesperson that sells one cargo van a year will not be able to offer you sound business advice, tell you how the GM Business Choice Plan works and help you avoid paying sales tax on a commercial motor vehicle purchase.

Although I understand the freedom of not having a payment, every money management guru will tell you not to pay cash for any business item that will be depreciated.

Use somebody else's money to make your money work for you. Once invested, it serves as a reserve fund in case of an emergency.

 

[pellgrn]

If me the 0% no money down is the way to go if you qualify,also buy towards the end of the model yr i got ford to give me the rebate and the 0%.If i had 25,000 laying around i'd still take the 0%.

 

[terryandrene]

Let me throw another log on the fire. If you buy a fully loaded GMC or Ford cargo van for, say $27,000, It'll be worth about $22,000 as soon as you drive off the lot. Put 100,000 miles on it in a year and the KBB or NADA will indicate it will be worth half what you paid for it. If you have a 5 yr 0% note, you'll have paid about $5400 for a van that would be worth about $14,000 but you'll still owe about $21,600.


Now enter a black ice situation, or worse yet a drunk driver and, in the blink of an eye, your van is totaled. The insurance company will give you $14,000, minus your deductable, the bank now wants their money because you no longer have collateral for the loan, and, you no longer have a revenue producing resourse.

Now what do you think of a no money down on a 0% loan?

Wisdom is the ability to discover alternatives. Consider all the alternatives before you jump into a situation which may create more problems than it solves.

 

[2czykats]

Thats what Gap insurance is for.

 

[late4dinner]

Some wise old man once told me that GAP insurance is like underpants. They keep you covered if your pants fall down.

 

[miguy1957]

Let me throw another log on the fire. If you buy a fully loaded GMC or Ford cargo van for, say $27,000, It'll be worth about $22,000 as soon as you drive off the lot. Put 100,000 miles on it in a year and the KBB or NADA will indicate it will be worth half what you paid for it. If you have a 5 yr 0% note, you'll have paid about $5400 for a van that would be worth about $14,000 but you'll still owe about $21,600.


Now enter a black ice situation, or worse yet a drunk driver and, in the blink of an eye, your van is totaled. The insurance company will give you $14,000, minus your deductable, the bank now wants their money because you no longer have collateral for the loan, and, you no longer have a revenue producing resourse.

Now what do you think of a no money down on a 0% loan?

Wisdom is the ability to discover alternatives. Consider all the alternatives before you jump into a situation which may create more problems than it solves.

I see your point, but with your full 27,000 in the bank you could go get youself another truck while you are Dickering with the Ins Co instead of waiting for them to settle. IMO using someone elses money with no intrest is a better way to go. Just my outlook..
________
SexyBarbie cam

 

[terryandrene]

I agree miguy, but who among us cargo van o/o's has $27K available. I also agree on the gap insurance, but the cost may degrade the value of the 0% loan. My preference is to give enough of a down payment so that I'm never upside-down on the loan; my old van have usually provided that for me.

My comment above was made solely to encourage others to consider worse case scenarios and prepare for them, Before entering this business.

 

[pellgrn]

I considered Terrys point,and without gap i.n.s i'd do it again and have and have 8 times.I started in 99 with 5,000 in cash and a credit card with 2,500 for fuel.I thought better to have the 5,000 for slow times or if i got injured or sick and couldn't drive the trk, then to put it toward not being upside down.I later had a driver of mine total my 03 gmc in nov of 05,they gave me 15,200 plus 1,200 for the bunk i added.I owed around 16,500 so it worked out,it happend in nov the driver split the 1,000 deductable with me and i got another trk 0% no money down he got my van i got the new one and he's still driven for me without an accident.When i started i wanted to keep the down payment for what i thought were more likley situation,not to say it was without risk.I was more afraid i wouldn't make any money and be stuck with a e350 ford as a lawn orniment and no way to sell it cause the buyer would be better of with a brand new one,then one with say 30,000 on it that i need 26,000 outta to brake even,i had a plan b if that happend,something to consider especially if you never did expediting before.I wanted to drive for a Roberts owner but they were only putting on strt,if i had that to do over i would drive for someone.