QuestionI am 24 years old (will be 25 in June) and am currently driving a ten wheel company dump truck in AZ and have about 6 months experience. My boss has offered to sell me the truck I am driving so I could be an owner operator or buy my own. I was wondering on what other start up costs I would have, setting up business, insurance, DOT, etc.
AnswerHi Blaine.
I've attached a link for you to look at. Many of the costs won't pertain to you, but you can weed those out. One of the biggest expenses in getting your own truck is the down payment. Even with good credit, dealers will be looking for $5,000 to $10,000 as a down payment. Most bosses will get you into a truck for a lot less than that. I would have the truck inspected by a mechanic (and not your companies, but an independent) and see what he says. You don't want to buy a new engine in two months. That could put you out of business right away.
With the addition of insurance, your own DOT numbers, plates, etc., you'll be looking at a few more grand. It's hard to say because your boss may be able to put you under his policy (with you paying, of course) that will save you money. I'm not sure what Arizona would charge you for plates and any fuel tax sticker you may need. Call the Arizona Department of Transportation and they can help you out.
If you have to find insurance on your own, look at big companies like www.progressivecommercial.com. Again, shop around.
Crunch the numbers hard to see if it's going to work for you. Truck payments, fuel and your salary are your biggest expenses. Don't forget about everything else, though. Trucks can have a habit of nickel and diming you to death. I don't want to discourage you, just trying to educate. It could be a very good deal for you, but do a business plan and see how the numbers work.
Good luck!
Bob Stephens
http://www.ooida.com/Documents/2003_Cost_Ops.pdf
