start up cost

[rfrogger120]

Could anyone tell me what the start up cost would be for a B-unit, I've gotten so many figures, I dont know who to believe.

 

[terryandrene]

Assuming you mean how much must you give to the carrier to sign-on, the costs vary by carrier. So, tell us the carrier(s) you're interested in and someone can give you the real start-up cost.

Some carriers may want the money up front and others will take from your settlements until you're done. Some of these costs include:

Qualcomm installation; Qualcomm deinstall paid in advance; Signage; signage application; Escrow account; Pager/telephone purchase; Background Investigation; Drug/alcohol/physical tests.

 

[rfrogger120]

it would most likely be panther or tri-state

 

[LDB]

Panther settlement deducts everything other than your physical and drug test as I recall so you'd need about $125. Another thing to consider is operating capital. You need to find out how long it is until you begin to receive settlements and have enough capital to run until the money starts coming in. Panther will give you 40% of the run pay at proof of delivery but a lot of that will go to fuel so you need to be able to run 3 weeks without pay coming in.

Leo Bricker, owner trucks 3034, 4958
OOIDA 677319
73's K5LDB
Highway Watch Participant, Truckerbuddy
EO Forum Moderator 1+ Years of Service
-----
Support the entire Constitution, not just the parts you like.

 

[rfrogger120]

Thanks Leo, do you know approximatly what the total would be for start up, I'm looking for an approximate dollar amount, I would rather put down as much as possible towards the startup cost so there not deducting so much out of my settlement.

 

[greg334]

I would say $5K min realistically. This will allow you to get started (hotel cost, food, supplies etc..), pay the bills and have some left for any problems. Figure three months to get up to speed to build some reserve. Of course this is outside the expenses like truck payment, insurance etc.., that I would have three months saved up so not to worry about it.

I can tell you you can do it for a lot less, maybe near to nothing but I don't recommend that at all.

Hope that helps.

 

[rfrogger120]

Thanks Greg, that does help, I dont think I'd have enough guts to go out there without backup capital cuz I wont be driving a new van and I know there is that chance that it will break down. The only thing I did'nt want was a van payment and I accomplished that.

 

[greg334]

your welcomed

A new van? does not matter, sometimes it is a bigger problem if you have more down time with dealer issues. mine is a 1999 and it really gets a work out, but I totaly trust it. I would put a little more away but it is doable.

 

[rfrogger120]

Greg334, what has been your biggest repair bill on youur 99 chevy since you've owned it? what size engine are you running?..... also looking at my expenses i could get away with half of the amount of the start up cost you said i would need.

 

[LDB]

I don't know for sure what the total is but you want to settlement deduct it. Whatever amount of money you have available you want to keep in your pocket. They aren't charing you finance charges so make use of the money available. You have to build up an escrow account of I believe $1000 for a van. I'm not sure what else there is but why hand them $1000 to fund the escrow when they'll take $50 a week over the first 20 weeks? The same applies to everything else. If you hand over $2k at orientation and have no deductions other than weekly QC rent and insurance it's a lot more likely Murphy will visit your van. If you keep that $2k in your pocket Murphy hopefully will look for a more desperate target. Never prepay if there's no extra cost for the extra time of weekly deductions.

Leo Bricker, owner trucks 3034, 4958
OOIDA 677319
73's K5LDB
Highway Watch Participant, Truckerbuddy
EO Forum Moderator 1+ Years of Service
-----
Support the entire Constitution, not just the parts you like.

 

[rfrogger120]

You know your right LDB, I've always been like that, thinking that if I pay a little more, I can eliminate some interest. But, as you said this ain't a loan, there ain't finance charges. Emergencies do happen and I think its better to be safe than sorry, having a stash will give me more peace of mind. But 20 weeks seems like a long time.

 

[LDB]

I believe that other than in infrequent exceptions one should plan on spending at the very least 3 months learning a new company and their systems before considering changing companies. That's 13 weeks so you're most of the way to completing the escrow account. Obviously you need to do whatever you think best but I'd advise keeping every dollar in your pocket that you can and taking however long it takes to gradually cover the startups. Good luck.

Leo Bricker, owner trucks 3034, 4958
OOIDA 677319
73's K5LDB
Highway Watch Participant, Truckerbuddy
EO Forum Moderator 1+ Years of Service
-----
Support the entire Constitution, not just the parts you like.