Gas or Diesel van

sekula · Dec 1, 2005

Hey all, thinking about getting in the expedite business just have a couple questions, any help would be great.

Here is the deal; I wanna start out in a van. I can't seem to make up my mind, a $30,000 diesel or a nice $20,000 gas?

My plan is as folows, my wife will be getting her cdl by the end of next year. So I wanted to drive the van until she does and then team up in a straight truck.

I would love to hear some oppinions.
Also if there is anybody that runs a gas van I was wondering what kind of mpg they get, and how does a gas engine do on those cold/hot nights when it has to idle for a long time.

Thank you in advance for any help you can offer.

jaminjim · Dec 1, 2005

When we had our van signed on with EGL for mostly local work, it ran maybe 60% highway. If I remember it got about 14 mpg. It is a Chevy extended 3500 gas burner. It gets more miles pulling in and out of the driveway when we get home. We put about $50.00 of fuel every two months in it. So you can see it only burns about $0.83 of fuel a day. hope to get a little better when it gets to 55,000 miles.

ACE · Dec 1, 2005

In your situation I would buy the gas van and save the $10,000. Then when your wife gets her CDL you will have more cash to put into a straight truck. If before the year is up you find out expediting is not for you then you will still have the cash.
I use gas vans for years and if you maintain them they will do just fine. The MPG is 15.

Take $ 1,300 and have an Espar heater installed in it by Ray at Espar of Michigan and you will not need to Idle in the winter. The Espar will keep you warm for a gallon of gas per 8hrs. This is a great product.

davekc · Dec 1, 2005

your situation I would buy the gas van and save the $10,000. Then when your wife gets her CDL you will have more cash to put into a straight truck. If before the year is up you find out expediting is not for you then you will still have the cash.
I use gas vans for years and if you maintain them they will do just fine. The MPG is 15

Excellent advice.

Davekc

sekula · Dec 1, 2005

Thanks alot for your input.

I had another question, do I need a 1 ton or would a 3/4 be fine?

Thanks.

ACE · Dec 1, 2005

Go with the one ton.

bcurt · Dec 1, 2005

I drive a 2004 Ford E-350 one ton, gas, go with the extended.. 15.5 to 16.5 mpg.. depends on how fast I drive.. Use the 10000.00 for start up costs.. It could be a couple of weeks before the first checks arrive... Aux, heater and bed roll, GPS system or Lap Top with streets and trips loaded in it... My Mobil One 5000 mile oil changes seem to come ever 2 weeks... Plan on no less than 400.00 a week in fuel.... Take the rest thats left over and buy the Wife something nice for Christmas..... Be safe... Bcurt

redytrk · Dec 1, 2005

What do you intend to do with the van after one year? If you intend to sell,The one year deprecition could kill you. The depreciation difference between gas and deisel should be considered.

I havent ownened a van since 1993,but at that time a Deisel (Ford)van had less than half the value of a gas engine.

Considering that most carriers have a glut of vans right now,I think I would get the truck right away,and wait for the spouse to get her CDL.

bigguy1001 · Dec 1, 2005

I am in agreement with redytrk. Skip the van altogether. Go straight to whatever you plan to driver with the wife and run it solo until she is ready. If you get the van your negative equity will grow much faster that your bank account. You'll make a much better living in the larger truck too. If your not afraid of duty logs or DOT scales, skip the van.

LDB · Dec 4, 2005

Either follow this advice and get the truck or find a decent used van for around $8-10k. DO NOT buy a $30k diesel or $20k gasoline van. You will lose thousands of dollars during the first mile off the lot and in a year when your wife is ready and you want the truck you'll still be those thousands of dollars in the hole. If you get a used van at $8-10k, in a year when she's ready you'll probably be able to get $6-8k for the van so your depreciation loss will be a fraction of what the new van will lose. I would probably advise the used van and run it until she's ready because that may be enough to tell you this is or isn't for you. If it isn't you'll face the least loss that way. Good luck.

Leo Bricker
OOIDA 677319
truck 4958
73's K5LDB
Support the entire Constitution, not just the parts you like.

terryandrene · Dec 4, 2005

To answer your question, my gas chev 3500 has 524,000 miles on it and still runs great at 15 mpg. I've idled all night without problems and stayed quite warm. I would not get a 3/4 ton as this can limit your earning potential after you include all your personal gear, in addition to the carrier required stuff. I've had two gas and two diesel vans and my next will be a less troublesome gasser.

I think all of the above great advice if you are sure your wife will join you in a year. A solo in a straight truck will typically earn/net more than a van with any carrier. You can get the bugs out of the straight truck before your wife joins you; better marital harmony that way.

Terry

sekula · Dec 5, 2005

Thanks guys.

Terry do you run team in a van? If you do I was wondering if there is any advantage to it, considering you don't have to log?

I think I made up my mind on what im going with.
2006 Chevy 3500. I agree with the advice you guys gave me but this van stickers for $31,000 and im getting it for around $ 25,000 out the door. This should help me with the first year depriciation and I will feel better knowing that I have a reliable vehicle.

Thanks all.

RichM · Dec 5, 2005

Having a reliable vehicle depends a lot on you and your driving habits plus maintenance schedule. I know Terry and he is (as I am) a sticlker for preventive maintenance. It is one of the most important things you can do whether you drive a Chevy van or a Century Class 8 F/liner.
Too many times you hear stories about breakdowns and they usually involve a driver for a fleet owner that will not raise the hood for fluid checks unless he is paid for it.
So keep alight foot,change that oil and you should be OK for many years. I have also just priced a Chevy 3500 with a 155 inch wb and the dealer wanted $26,074 plus sales tax. Seems somewhat high to me.

sekula · Dec 5, 2005

Yeah Rich I was getting around the same price as you said, but a friend of mine works at a dealership and he can get it for me for the employee price, which on a ext. 1 ton is about $3,000 cheaper then everywhere I looked.

And as far as maintenance goes, I we always been on top of it with anything I own bike, truck even my wife.

Thanks.

Gener8 · Dec 5, 2005

I keep seeing you say depreciate. I understand what you mean, but when it comes to tax time you should consider mileage.!! Ask Frank Katz if you have any questions. Of course this is only on a van!!!

terryandrene · Dec 6, 2005

Rene' and I team about 50% of the year. A van team will typically gross 1/3 more than a solo. Net will be about 1/2 more because all the fixed and most recurring expenses are the same, team or solo.

Straight trucks will usually earn 65% more as team than solo.

As mentioned above, the depreciation formulas for a van will not be as lucrative as usuing the mileage deduction allowed by the IRS. If you do 100,000 miles per year, your mileage deduction will be $$48,500 plus tolls and parking. Depreciation your first year will only allow you about $10,000 plus all your operating costs. Your fifth year depreciation will be only about $3000 plus operating expenses. You will surely keep good records of all your expenses so you can compare for yourself at year end. Remember if you depreciate the first year, you cannot change to mileage thereafter.

Terry