Should I go for it?

jugbutt · Feb 28, 2010

I found this man that i going to buy a van from and he said he would let me work under his Company name.
He tells me that he will find me loads and that I could find my own also.
He wants me to have a laptop and cell phone (no problem) so I came find myself loads if he was off or sleeping (he Drives also)!
He will pay Freight Ins. and will pay 75/25 split.

Is that a good deal? I'm new to this been on site going thru Fourms and all.
I just need reasurance on my big move into the bussniess.
I am 41 and just need to learn the ropes. My wife Amy is behind me a hundred % on all this!

Thanks everyone!!!

Dakota · Feb 28, 2010

jugbutt said:
I found this man that i going to buy a van from and he said he would let me work under his Company name.
He tells me that he will find me loads and that I could find my own also.
He wants me to have a laptop and cell phone (no problem) so I came find myself loads if he was off or sleeping (he Drives also)!
He will pay Freight Ins. and will pay 75/25 split.

Is that a good deal? I'm new to this been on site going thru Fourms and all.
I just need reasurance on my big move into the bussniess.
I am 41 and just need to learn the ropes. My wife Amy is behind me a hundred % on all this!

Thanks everyone!!!

who gets the 75 and who gets the 25?
Will you get 100% of FSC?
Get everything in writing and take it to a lawyer

jugbutt · Feb 28, 2010

Dakota said:
who gets the 75 and who gets the 25?
Will you get 100% of FSC?
Get everything in writing and take it to a lawyer

I will get 75%.
Iguess that would be good to know(fsc) huh!!

So ask him to put it all in writing like a Contract?
Thanks Dakota!!!!

greg334 · Feb 28, 2010

Well yea, get a contract, get a lawyer to look at it but before you do anything - ask yourself this;

Can I really make any money at this even working for someone or should I get my own van?

AND before anything else ask yourself "what do I really want out of this?"

If it is just to make money, think about it first.

jugbutt · Feb 28, 2010

greg334 said:
Well yea, get a contract, get a lawyer to look at it but before you do anything - ask yourself this;

Can I really make any money at this even working for someone or should I get my own van?

AND before anything else ask yourself "what do I really want out of this?"

If it is just to make money, think about it first.

Hey Greg I will be owning the van And I really think this is a thing I want to do.

I read alot of your Quote and you are very right.

Dakota · Feb 28, 2010

FSC is Fuel Surcharge and if your paying for all the fuel you should get all the FSC in my opinion

Dakota · Feb 28, 2010

Also find out what he charges these companies per mile, as if he is charging too little you will go broke fast. Then you will need to figure out your fixed costs and how much it will cost you to run per mile. figure out how many miles you need to cover your costs and to pay your bills.

greg334 · Feb 28, 2010

This is all good and well, it sounds great on the surface but then I ask why can't you get a van yourself and drive for yourself instead?

See the money spent doing this right (read - protecting yourself) and the time to cover just the basics can all be put to better use.

Dakota · Feb 28, 2010

greg334 said:
This is all good and well, it sounds great on the surface but then I ask why can't you get a van yourself and drive for yourself instead?

See the money spent doing this right (read - protecting yourself) and the time to cover just the basics can all be put to better use.

I agree buy the van, lease onto major carrier, not sure you can make money in a van as a solo driver working for someone else. I think it is hard enough to make money driving for yourself without having to cough up 25% to someone

guido4475 · Mar 1, 2010

Both Greg and Dakota are so correct.If at all possible,Buy a good used van on youre own and lease on to a major carrier.The profit margin is thin with a van, but you can make decent money in a van if done correctly.I just dont see how some people are able to turn a profit owning a van and paying a driver also, unless the van is paid for, which can be a huge blessing.

arkjarhead · Mar 1, 2010

You also need to know all deductions will be coming out of your settlement besides just the the van payment. Those deductions add up fast.

Humble2drive · Mar 1, 2010

Dakota said:
I agree buy the van, lease onto major carrier, not sure you can make money in a van as a solo driver working for someone else. I think it is hard enough to make money driving for yourself without having to cough up 25% to someone

This is contrary to the usual advice I see on this forum of "drive for an owner first".

If Jugg drives someone elses van and makes no money, the downside is limited.

If Jugg buys his own van (with little to no experience) and makes no money, the downside is much greater.

There are many opportunities to drive someone elses van to learn the business and the lifestyle before making a major commitment.

This deal sounds more like a lease purchase agreement vs an outright purchase. It also sounds limited to the leasors ability to find and book loads. It just seems a lot safer to enter the industry by finding an owner that has a van leased on to a major carrier. The investment and the downside is minimal and the exit strategy is uncomplicated.

Just some thoughts.

Good luck!

davekc · Mar 1, 2010

All good advice. May be worth your while to have this guy provide you with two current and or past drivers phone number.
The concern would be whether he can keep you rolling.
Some are good at it, and some are totally worthless.
Remember, "Trust, but verify".

xiggi · Mar 1, 2010

Several people have said drive for a major carrier. For me just the opposite is true. I have done way better with a small company than with one of the big boys. I wonder if some people giving that advice have driven for anything other than major carriers.

Humble2drive · Mar 1, 2010

xiggi said:
Several people have said drive for a major carrier. For me just the opposite is true. I have done way better with a small company than with one of the big boys.

Good for you!

xiggi said:
I wonder if some people giving that advice have driven for anything other than major carriers.

Not this one.

The advice to drive for a "major" carrier was given for simplicity sake and not meant to disparage the smaller companies.

It is this simple: Larger carrier = more fleet owners = more van opportunities.

If you are doing well with a "small company" that has fleet owner vans available then please name the company and give Newbies a chance to persue that option.

x06col · Mar 2, 2010

Dakota said:
I agree buy the van, lease onto major carrier, not sure you can make money in a van as a solo driver working for someone else. I think it is hard enough to make money driving for yourself without having to cough up 25% to someone

Don't cough up 25%, instead sign on with someone and cough up 40%??? WTF kinda logic and advice is this???

davekc · Mar 2, 2010

Percentages don't mean anything. Need to know what the percentage is based on.

x06col · Mar 2, 2010

Percentages must not mean anything I guess. I had a couple contractors that would NOT run for FIFTY percent of two buks, but WOULD run for SIXTY percent of a buk n a half. I kinda liked it. Regardless, rates/charges SHOULD be really close to the same for all Carriers, so I will suggest percentages DO matter.

breeze · Mar 2, 2010

Yes it is a fact that each and everyone of us payes 25 to 40% percent for our loads,unless you have your own authority then doing the paperwork and holden all expences till you get payed ,possibly 30 60 dayes.Ive never heard of a broker paying 100%.