Finances

[DooWop]

Could the forum help me with some info as I have entered into a letter of intent with an expediting company? I realize that this is not a legally binding document, but I do need to tap into the experience of forum members.

1) What might be the price range of a used (2002 or newer) diesel
van with sleeper?

2) Any idea on the interest rate for such a vehicle? I WILL NOT
USE A HOME EQUITY LOAN TO MAKE THIS PURCHASE!!!!!!!!!!!!

3) To start in expediting with this type of vehicle what might be
a good number to have in a business checking/savings account?

4) Based on forum members experience do you consider a van payment
of around $500 per month too high? Just about right?

5) Any other business/financial advice that you might want to share?


Regards

DooWop

 

[davekc]

I will take a stab at some of it. I am no expert on vans however the classifieds on here will give you a ballpark on price.
Interest rates currently with good credit are around 10 to 11 percent and rising.
500 a month is a reason payment in my opinion. And to start I would have three to six months of expenses in place. Some folks may differ with this but this is my opinion. The expenses should cover your business as well as your personal expenses. Unless of course you are married to someone in the Heinz family. Just kidding.
Hope this helps
Davekc

 

[Lawrence]

I think $500 is healthy. However, I have met O/O's with van payments in the $800 range. OUCH!

[link:www.expediteexpo.com/2004/index.html|Come to The Expo!!!]

Lawrence,
Expediters Online.com


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[terryandrene]

doo:
Dave's comments sound good to me; however, If you have a $500 a month budget you'll need to find a used van for sure. Don't forget startup $$$ that'll be about a minimum of $400. That's if you find a used expediter equipped van. Then you'll need operating/living expenses for the first couple of weeks before you see any run money. Some companies will load a Comdata account for a portion of your settlement, at the time you make a pickup.

Dave's comment about having a few months living expenses set aside should not be taken lightly. Personal or business trauma could put your life in the financial emergency room if you can't cover your expenses for awhile.

Good luck with a good purchase, Terry

 

[RichM]

Marry a lady with the last name of Heinz and you will be OK.Of course you have to look at her in the AM and listen to her wacko statments about anything but she could cover that payment with 10 minutes of petty cash.

 

[ATeam]

While I have little knowledge of van operations, allow me to share this link to the Volvo/Overdrive Magazine Partners in Business web site:

http://www.partners-in-business.com/

This resource was of imense value to my wife and me as we prepared our business plan for our loan officer. It's written for the tractor/trailer owner/operator. We were able to adapt it to our straight-truck operation. Perhaps you'll find things of value at this site for van operation as well. It's a little dated. I just read in Overdirve magazine this week that the published manual will be updated in a few months and again be available in printed form.

Until recently, this was the best business planning resource I've seen. Another great one is on the way. It's called "Build Your Buisiness: An Owner-Operator's Guide To Success." It's published by Freightliner SelecTrucks and American Truck Business Services.

I was asked to review an early copy of that publication. Not sure when it will be publicly available...soon I expect. It too will be a book worth the time to read. It includes a number of helpful worksheets, the completion of which will positively impress any loan officer. I'm keeping my eye open for the public version. When it comes out I'll post info here about how to get it.

 

[davekc]

The newer up to date would be much better for newcomers. Some of the dated stuff can be misleading because they for example caculate fuel prices at a 1.30 for example. Interest rates on new loans will be an issue very soon as well since they are starting to climb.
Davekc