Investment

[kastmgmt]

I know there's no straight answer for this question, because I know one week can be bad and the next can be great. Hypothetically speaking, let's say you invested in a straight truck solo leased on to a company and you have a horrible first six months. You have cash in reserves for personal expenses, but you're not turning a profit in the truck.
Do you stick it out another six months, to see if it gets better, another year? Or do you pull out after the first year before you go flat broke? My question is how long do you drive, before you relized it's not a good investment and you go home??

Thanks.

 

[jjoerger]

I would think the people that could answer that are no longer posting here.

 

[kastmgmt]

Okay, so what are you saying? Nobody here has lost money in this business? Or everybody has lost money?

I understand sometimes stupid questions get stupid answers, but that is why I said "Hypothetically." Matter of fact it is not that stupid because there might be someone who lost money their first year but turned it into a lucrative career.

 

[Slo-Ride]

My question is how long do you drive, before you relized it's not a good investment and you go home??

Thanks.

Usually until Thursday morning.. That's when I start thinking how much I lost/made.. Sometimes I hang on to see what the weekend brings but this year I've been home by early Friday night or Early Saturday morning.

I have been 1 flat tire away from being bankrupt a few times. But if I was doing this again and investing at today's prices I think I would bail. This year is shaping up as my worst on record and it was a year with no truck payment. Granted with no truck payment I properly didn't worry so much about staying out. But I think the lack of steady/consistent work played into it also. I don't see it getting any better any time soon, but I am not one of those guys that can forecast the economy.. I just try to keep the lights on at home.Its a gamble and with straight trucks starting at 150k Its a gamble I don't think I would take again?? But in the same breath I am sure some folks said the same thing when they seen my shiny new truck.. Making the same rate if not a little less then the day I starting doing this. Again brother its a tough call if ya want to come out and play nowadays.

 

[jjoerger]

Okay, so what are you saying? Nobody here has lost money in this business? Or everybody has lost money?

I understand sometimes stupid questions get stupid answers, but that is why I said "Hypothetically." Matter of fact it is not that stupid because there might be someone who lost money their first year but turned it into a lucrative career.

What I meant is the people who have lost money and bailed out are no longer interested in posting on a site like this. I do not think your question is stupid. Just the majority of posters on EO are not in that situation.
My advice has always been to drive for a fleet owner first and learn the business before investing in a truck. If I were in a situation where I invested in a truck and had to constantly take money from savings I would start looking for another career. Personally I would give it a year to start making a profit.

 

[kastmgmt]

Thanks that's what I was looking for.

 

[crich]

if its your first truck don't spend 150k spend 25-50 and let the depreciation hit be someone else.
the 25k-50k straights get paid the same rate per mile as the 150k trucks.

 

[Daffyduck528]

What I meant is the people who have lost money and bailed out are no longer interested in posting on a site like this. I do not think your question is stupid. Just the majority of posters on EO are not in that situation.
My advice has always been to drive for a fleet owner first and learn the business before investing in a truck. If I were in a situation where I invested in a truck and had to constantly take money from savings I would start looking for another career. Personally I would give it a year to start making a profit.

I have to agree. Driving for a fleet owner 1st is a very smart way to play it. You can pretend the truck is yours and add up all the costs to get an idea of what a truck really makes the owner. You also gotta remember your never guaranteed the ability to sell your truck if your investment turns out to not work like you hoped it would. I own several trucks at this point, but my 1st truck I bought on less than ideal circumstances and now I can sell it without paying $10k to clear the loan. Not that I would have just list that money but I would need it just to get out from under my note if I sold the truck. Now, I don't plan on selling the truck so it doesn't bother me too much but whatcha gonna do if after a year your in the same boat on your truck and all your money is gone? Go into bankruptcy? Keep on trucking hoping to save what little you have? It's way too big a risk to take in my opinion if you don't know if it's for you or not.