Trucking: Trucking Investment, gut instinct, trucking industry


Question
Hi J.P.,
I'm not sure you can answer this question for me.  But you may be able to give me some insight with all of your experience. I have an opportunity to invest in a trucking Company.  I don't know anything about the trucking industry so I am looking for any advice/ideas/thoughts you may have.  The bottom line is that I would spend 40K - 60K to buy a tractor/trailer and a Company would pay me $2000 - $2500 a month to lease it from me.  They cover insurance, repairs, etc.. I would cover the cost of a new engine when it goes...which I was told would be about every 4 years or 1 million miles.  Plus they may not pay me full monthly payments if there is considerable down time for that month.  I know this is very high-level basics leaving out many details, because I don't want to ramble too much...what is your first gut instinct.  Good investment? Problems or other considerations come to mind? This investment would pay about 40% return on my money per year. That's in a perfect world without all of the risks.
Thank you in advance for any thought or ideas you may have.
-Jeff


Answer
Hi Jeff,  Sorry for the delay.  I have been sick.
On you venture, I would not go into it for several reasons.
1. The equipment you mention can not be new for the price given. 2. The Leasing company can claim excess expenses for the operation of the truck. 2. You would not have control of the equipment.  I have personally owned trucks and speak from experience.  I believe you can find a better source to invest your money.  Good Luck  J P