Trucking: trucking investment, volvo vn 780, trucking business

Question
Hello and thanks for answering my question.
Like the other person I too have no idea about trucking business and am in a position where I can invest in trucking business with just a bit of a different twist than him.

I was talking to a friend of mine who is an independent O/O about the business and he told me that he can help me out.

Here is his plan and the figures he gave me.

I will buy a year or so old (less than 200,000 miles) or a new truck for cash. (I have the cash) possibly a Volvo VN 780 for $85,000 to $110,000.
I will then give him the truck and he will have it driven with a reefer (he owns the reefer)

Here is the numbers he gave me:

Average dispatched miles driven per year: 150,000
He will pay me $1.11 per dispatched mile which comes up to $166,500

I am responsible for all the costs. He provided me with the following list of expenses:

Fuel $2.5/gal, 6.5 mile to the gal for 150,000 miles = $58,000/yr
Driver’s salary: $60,000/yr
Insurance: $5,000/yr
Repairs and other misc: $2,000/yr
Oil change: $2,000/yr
Tires: $1,500/yr
Washing the truck; $1,000/yr
Heavy User tax: $550/yr
Fuel tax: $450/yr

All the expenses added mounts to $130,500/yr which will leave me with a net profit of about $36,000/yr.

If I decide to do this, then based on his recommendation, I should plan on selling the truck in 2.5 to 3 years or before the 500,000 mile mark for about $50 – 60,000 and do it all over again.

My questions:
1-   Are these figures realistic?
2-   Is he being fair with his numbers?
3-   Should I buy a slightly used truck or a new one?
4-   What type of contract should I draw?
5-   What are the risks involved?
6-   What steps should I take?
7-   Is this a good idea?
Thank you very much.


Answer
Frank, the numbers sound ok, but it sounds risky.  Why wouldn't an O/O simply finance his truck through a bank or leasing company?  Sounds like you buy type truck and he pays only for the miles he drives.  What happens if he gets sick or injured?  This sounds like a risky deal unless you already know how to run a trucking business and have other drivers to put in the truck if this one fails.  Just my opinion.  Jim.