Lease Purchase Planning to become an owner operator.

mndriver

curmudgeon extraordinare
Supporter
Make sure all equipment or machinery is paid for up front and in full in good working condition.
Working capital $75.000.00 with $50.000.00 in savings and debt free
Business advice like that......



Like everyone just has $125,000+ free cash hanging around. Based on that,. I Should have never started 6 years ago. As well as several others who are o/o here.
 
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derekcook13

Well-Known Member
Well I my not have 125,000.00 laying around, but I can get 27,000.00 by the end of this year saved. Now my circumstance isn't run of the mill. No bills, livin out of the truck, and saving money is my life right now. It can be done! But man you get Nothing, No movies, No extras, can't allow youself to eat out until you hit a Mark, sometimes not eating at all. If you want to fulfill something bad enough, you'll sacrifice.
 

derekcook13

Well-Known Member
Let's say you make 856.00 a week, meager I know, but for example. Go through your bills, necessities only. I don't care if you crap'n peanut butter for the next year. This is how you save, big. So 600.00 rent, 200.00 utilities, car payment 200.00, gasoline 100.00, food 280.00 this is a month. Each week without question, in the bank 507.62. By the end of the year, your almost at 27,000.00. That's what you do!
 

dchawk81

Well-Known Member
Let's say you make 856.00 a week, meager I know, but for example. Go through your bills, necessities only. I don't care if you crap'n peanut butter for the next year. This is how you save, big. So 600.00 rent, 200.00 utilities, car payment 200.00, gasoline 100.00, food 280.00 this is a month. Each week without question, in the bank 507.62. By the end of the year, your almost at 27,000.00. That's what you do!
Great in theory but peanut butter sandwiches get old after a while.
 

braylean

Well-Known Member
I catch allot of slack on here and fight back tooth and nail but I like the way I'm doing it. I found a lease purchase that works. But with that said, I have no house of my own and my wife and I live on the truck so my home or personal expenses are very low, around $500 a month plus food for the truck, meals and etc. Maybe a thousand a month total. That lets me bank what I don't splurge on for the truck and it let me raise my maintenance fund deduction. I have and could bank some money and rent a house too, just not nearly as much. You definitely need to know what your doing out here and listen to guys when they tell you that you need a cushion for unexpected problems. I have most of my truck under warranty and keep it that way and plan on having at least 20 k in the bank at the end of the lease or before I leave the company if I decide to stay under their authority. For me that won't be hard to do because I banked 4 k in just the last six weeks, but for someone with a mortgage and a car payment that would be around 1k or so. Think long and hard on it and do what you said and take your time and research till your tired of it and then do more research. Despite what people say, it can be done from $0.00 but it isn't easy and it takes allot of sacrifice.
 

mndriver

curmudgeon extraordinare
Supporter
I borrowed $3500 against the wife's car in 2012 to buy my first truck. I've since worked up to a new driveline in that same truck and pulling a new step deck that I traded a new reefer in on after pulling it for two years. As well as having two very competent O/O leased on with me.


I can't stress enough that drivin' is only 10-15% of being an independent. Mind the pennies. The dollars will take care of themselves.
 

(((ME)))

Well-Known Member
I am well aware trucking is much different then the type of business I was in....The pay checks and contracts were on a larger scale too. If you want a sound business set a foundation under it that can handle unexpected expenses. Leave nothing to chance or doubt. Always hold the money cushion under the business....Those long hours is what buys that peanut butter your all talking about. As for those luxury items that money buys once you gone long enough without them you never miss them. Remember big difference between need and want. Be prepared to put out guts, sweat, and tears....cause that what it takes to work for yourself and be your own boss and ceo....It does not come easy.
 

derekcook13

Well-Known Member
Great in theory but peanut butter sandwiches get old after a while.
Yeap, but got a true story: A farmer and his family wanted to payoff the new combine they had purchased. He said to his wife and kids, with 3 good years of God's grace, and good weather we can pay off that combine. They ate peanut butter sandwiches and milk, the whole family for 3 whole years. On the end of the 3rd year, that combine was paided in full. The family never ate another peanut butter sandwich after that for the rest of their time...The story is true, too truly prosper. Their must be a great sacrifice by someone or some family, in order to jump ahead and live the American dream.
 

GAnthony

Well-Known Member
Supporter
Yeap, but got a true story: A farmer and his family wanted to payoff the new combine they had purchased. He said to his wife and kids, with 3 good years of God's grace, and good weather we can pay off that combine. They ate peanut butter sandwiches and milk, the whole family for 3 whole years. On the end of the 3rd year, that combine was paided in full. The family never ate another peanut butter sandwich after that for the rest of their time...The story is true, too truly prosper. Their must be a great sacrifice by someone or some family, in order to jump ahead and live the American dream.
and they were peanut farmers to, eh..???..............:rolllaugh3:
 

Silverwolf

Well-Known Member
OMG, what a joke. Buddy, go for it, owning a business easy. IF your worried about taxes, buy a tax program, they work flawlessly. Trucking companys are a service industry. The easiest companies to run. A chimpanzee can run a truck company, probably drive it too. Don't forget, all the costs everyone scares you with are TAX RIGHT OFFS. Fuel, right it off, repairs, right it off, fix your own truck, pay yourself, right it off twice, and you pay yourself with your own money. lol. My only advice is to keep a fund available for a major break down. Maintenance is key to prevent this, but must have it there in case it happens so you don't have down time. Speaking of the dreaded down time, you should never have any. When your truck breaks, your rent one while its being fixed. The cost of rental, right it off, and your business insurance pays for it. Again, you get it twice. The people who put down owner operators are the ones who either failed at it (Complete morons if that's the case), or the ones who are scared to take the plunge into business ownership because they are scared or uneducated and don't know how. Just like any business though, you must be good at it. Bottom line is you need to work, if your no good at it, and can't find work, then you will be in the fail category. If you have people that will hire you on a regular basis, then you have no reason to not take the plunge. I would buy an older pre DEF truck to start, keep your repair costs down. New trucks break down a lot. Old trucks got all the bugs worked out, no costly def system. Do it man, go for it. You will do just fine.
 

GAnthony

Well-Known Member
Supporter
? Don't know. I heard the story 35yrs sgo
i DO KNOW for a fact, that here in my area, there are groups of Asians living in one house. they pool thier money and eat basically rice and fish which can be cheap foods.

then all that money pooled in for the rent, pays the rent, utilities, etc, and when the time comes. enough of that money is given to one of the families living with them, for a down payment on a house.

whether or not that family you "heard about" eating PB all day long is true or not, it is a fact that many families eat meagerly and pool thier monies for a better future.

though i'd would have wanted jelly and bananas with my PB sammiches..>!!!!!
 

derekcook13

Well-Known Member
I'm going to make a pretty good sacrifice myself. After this year, I am taking a huge chance to quit my job. This my very first restoration of a semi. Everything is new to me, although I have restored a couple of cars. This is a much bigger scale, If I got books, I can do it. I figure if I work almost everyday It would take me a year. Can't make one single mistake, from removing the cab, to dismantling the truck, rebuild every piece by hand, stretching the frame and so on. I don't know about food, housing or transportation. Once I get closer I'll have that somewhat figured out.
 
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Silverwolf

Well-Known Member
I'm going to make a pretty good sacrifice myself. After this year, I am taking a huge chance to quit my job. This my very first restoration of a semi. Everything is new to me, although I have restored a couple of cars. This is a much bigger scale, If I got books, I can do it. I figure if I work almost everyday It would take me a year. Can't make one single mistake, from removing the cab, to dismantling the truck, rebuild every piece by hand, stretching the from and so on. I don't know about food, housing or transportation. Once I get closer I'll have that somewhat figured out.
If you restored a car, then you have all you need for knowledge to do your truck. Diesel engines have half the parts of a gasser, and the semi engines are twice as easy as a pick up truck diesel to rebuild. Your going to laugh when you see how easy it is. My first diesel engine was a powerstroke in an f350. Probably the most complicated diesel built. I was scared, but laughed when I was done. So easy. Semi will be much easier. Don't even need o pull the motor out for a basic re sleeve . Id pull it though, do the full build, get it all painted up nice. I always look for upgraded parts too. They tend to cost about the same , but perform much better and last longer. The stock powerstroke I built was rated to a max of 600 hp. When I was done it was rated at 3500 hp. So theres lots to improve on most older motors. The semi engines are the same. Just easier to work on.
 

GAnthony

Well-Known Member
Supporter
I'm going to make a pretty good sacrifice myself. After this year, I am taking a huge chance to quit my job. This my very first restoration of a semi. Everything is new to me, although I have restored a couple of cars. This is a much bigger scale, If I got books, I can do it. I figure if I work almost everyday It would take me a year. Can't make one single mistake, from removing the cab, to dismantling the truck, rebuild every piece by hand, stretching the from and so on. I don't know about food, housing or transportation. Once I get closer I'll have that somewhat figured out.
in an earlier posting, i think you said something like, you're going to live on $27,000 for the time you are restoring that truck?

i think in short time, most of that money will be gone, and back to work you go.

since i am not sure what type of resto job you're going to do, a full on factory, or resto/mod, either way, the parts alone will eat into your tiny cash reserves.

if it were me, i'd do the resto on the weekends and vacation times. not too many restoration jobs (from professionals i have seen on the Velocity Channel), complete a resto or resto/mod in under 1 year, some take over 2 years. there is always time wasted waiting for parts to arrive, shopping for those parts, and maybe fabricating parts as well.

i wish you all the best in your resto project, but i'd seriously reconsider quitting your job as well.
 
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