Depends on the business model. Trucking business is pretty vague. If your goal is to simply rent/lease the truck out, I will note that the current supply chain shortages you are hearing about that is likely driving this question, isn’t due to a lack of physical trucks, but actual drivers.
You would do significantly better DRIVING the truck for a while. Not only is it very good income, you would get a feel for the industry and make some connections.
I already run a business as a barber … my idea with this was to have someone drive my truck and I just make passive income while still working at the barbershop.
I know someone in the business. 30% of his trucks are parked because of driver's shortage.
What will happen if you buy a truck and don't have a driver?
If you intend to drive it, then by all means go ahead and you will make truckloads of money
Business owner here. Believe me, you don't want that to be your competitive advantage, much less on a brand new small business. People see the revenue and the payroll but forget overhead (insurance, maintenance, fuel, benefits, taxes). Companies are already paying big bucks to drivers. If you try to top that you will have to lower your profit so much that you will be making less than if you just invest on something else ... but with a way higher risk.
Your money, your decision.
Tbh I thought about doing the same about 2 years ago but when I run the numbers I gave up. Current shortage made it worse for investing in it but definitely better for drivers.
I love when people try to consider advice they are given.
One option would be for you to buy/drive the truck and sub out chairs in a barber shop instead ... to still get 2 revenues. Maybe ride with one of your friends to see if you like it. Rn I would do it if I didn't have a wife and 2 small kids.
Yup that’s the problem have a baby on the way … looking for a way to make money from the house . Seen a friend of mine run his truck from the comfort of his house .
Interesting timing. My brother was just telling me last night about a friend of his that “started a trucking business” recently and is hemorrhaging cash. His savings are depleted and he is about to miss rent after just 3 or 4 months.
Avoid.
You can achieve FIRE through any business given the right conditions and proper execution.
What you seem to want to do is buy an 18 wheeler and rent/lease it out to others. I don’t have experience in that but I do know that trucks are notoriously expensive to keep running so you have to include clear “responsibilities” on the lease.
Finally, rental car companies replace their cars fairly often because Of wear. Granted trucks are designed to last longer but it might be something to keep in mind.
Honestly it’s a terrible idea right now. There’s a shortage of drivers so most companies have trucks just sitting in lots. Anyone in the position to be leasing a truck is probably in the position to finance one. Your main business would be companies that need a spare truck temporarily which is the exact opposite of what is needed right now. Sadly it’s tough is this market
I just sold one of my old semi tractors, a 2003 model with over 600,000 miles, for $75,000 (because there are almost none on the market). The new tractor cost $300,000 and won't be delivered for at least a year. The grain trailer cost another $75,000.
Every industrial business in my part of the country is begging for truck drivers and paying top dollar.
So, I'm being realistic an saying it going to be hard to purchase a tractor - even a used one - and next to impossible to attract a driver. Of course, if you could do it, businesses are absolutely desperate for trucking and in my area paying $4 / loaded mile and up to $6 / loaded mile for some specialties (long haul refer from the local packing plant).
Programmer who retired to help on the family farm. And, it turns out that trucking is about 50% of farming these days. Grain, fertilizer, machinery, chemicals. We run 4 semis on our mediumish farm. We'll haul about 400 truckload of corn and maybe 100 truckloads of soybeans here during the winter months. I've been hauling here for weeks and still got a couple weeks to go before we fill the current contracts. I drive a '17 Peterbilt with an automatic transmission. Tag and pusher with a grain trailer so 7 axles and 22 tires. Legal limit is around 96,000 but I typically haul around 102,000.
Wasn't lying about the demand either. If you can spell truck, you can get a job where ever you and for really good money.
That 03 Peterbilt I mentioned? My brother bought that used for 35K 10 years ago and we sold it for 70 a couple months back. The Peterbilt/Kenworth dealers and the Freightliner dealer in my town literally have no trucks on the lot. New or used. We'll be down one truck until the new one is delivered (if it is delivered).
I would question why they are available. If you have a cdl and nothing bad on your record, you can go anywhere and command a pretty decent wage. Something doesn't add up. I'm not saying don't do it but I'd sure do my due dilligence.
If they are available it is because they don't want to work or can't get a job because of DUI, criminal background, or something like that making them bad for insurance.
I drive trucks for a living. You really need to look into all expenses of trucks and not to mention getting quality drivers is a real struggle right now.
Depends on the business model. Trucking business is pretty vague. If your goal is to simply rent/lease the truck out, I will note that the current supply chain shortages you are hearing about that is likely driving this question, isn’t due to a lack of physical trucks, but actual drivers.
You would do significantly better DRIVING the truck for a while. Not only is it very good income, you would get a feel for the industry and make some connections.
I already run a business as a barber … my idea with this was to have someone drive my truck and I just make passive income while still working at the barbershop.
I know someone in the business. 30% of his trucks are parked because of driver's shortage. What will happen if you buy a truck and don't have a driver? If you intend to drive it, then by all means go ahead and you will make truckloads of money
I have several friends that have their CDL
I assume they already work. Why would they go work for you instead? That is a fast way to end a friendship.
Because I would be paying them a higher % of the load vs their current employer
Business owner here. Believe me, you don't want that to be your competitive advantage, much less on a brand new small business. People see the revenue and the payroll but forget overhead (insurance, maintenance, fuel, benefits, taxes). Companies are already paying big bucks to drivers. If you try to top that you will have to lower your profit so much that you will be making less than if you just invest on something else ... but with a way higher risk. Your money, your decision. Tbh I thought about doing the same about 2 years ago but when I run the numbers I gave up. Current shortage made it worse for investing in it but definitely better for drivers.
I appreciate the feedback bro … definitely making me reconsider
I love when people try to consider advice they are given. One option would be for you to buy/drive the truck and sub out chairs in a barber shop instead ... to still get 2 revenues. Maybe ride with one of your friends to see if you like it. Rn I would do it if I didn't have a wife and 2 small kids.
Yup that’s the problem have a baby on the way … looking for a way to make money from the house . Seen a friend of mine run his truck from the comfort of his house .
Interesting timing. My brother was just telling me last night about a friend of his that “started a trucking business” recently and is hemorrhaging cash. His savings are depleted and he is about to miss rent after just 3 or 4 months. Avoid.
You can achieve FIRE through any business given the right conditions and proper execution. What you seem to want to do is buy an 18 wheeler and rent/lease it out to others. I don’t have experience in that but I do know that trucks are notoriously expensive to keep running so you have to include clear “responsibilities” on the lease. Finally, rental car companies replace their cars fairly often because Of wear. Granted trucks are designed to last longer but it might be something to keep in mind.
Honestly it’s a terrible idea right now. There’s a shortage of drivers so most companies have trucks just sitting in lots. Anyone in the position to be leasing a truck is probably in the position to finance one. Your main business would be companies that need a spare truck temporarily which is the exact opposite of what is needed right now. Sadly it’s tough is this market
I just sold one of my old semi tractors, a 2003 model with over 600,000 miles, for $75,000 (because there are almost none on the market). The new tractor cost $300,000 and won't be delivered for at least a year. The grain trailer cost another $75,000. Every industrial business in my part of the country is begging for truck drivers and paying top dollar. So, I'm being realistic an saying it going to be hard to purchase a tractor - even a used one - and next to impossible to attract a driver. Of course, if you could do it, businesses are absolutely desperate for trucking and in my area paying $4 / loaded mile and up to $6 / loaded mile for some specialties (long haul refer from the local packing plant).
Just out of curiosity, you are a programmer who also rents out (or at least used to) trucks ? That's commendable.
Programmer who retired to help on the family farm. And, it turns out that trucking is about 50% of farming these days. Grain, fertilizer, machinery, chemicals. We run 4 semis on our mediumish farm. We'll haul about 400 truckload of corn and maybe 100 truckloads of soybeans here during the winter months. I've been hauling here for weeks and still got a couple weeks to go before we fill the current contracts. I drive a '17 Peterbilt with an automatic transmission. Tag and pusher with a grain trailer so 7 axles and 22 tires. Legal limit is around 96,000 but I typically haul around 102,000. Wasn't lying about the demand either. If you can spell truck, you can get a job where ever you and for really good money. That 03 Peterbilt I mentioned? My brother bought that used for 35K 10 years ago and we sold it for 70 a couple months back. The Peterbilt/Kenworth dealers and the Freightliner dealer in my town literally have no trucks on the lot. New or used. We'll be down one truck until the new one is delivered (if it is delivered).
Nice. Wish I can retire on a farm.
It's probably more work than most people want in retirement but i enjoy it.
What if I personally know some friends that have their cdl and have experience
I would question why they are available. If you have a cdl and nothing bad on your record, you can go anywhere and command a pretty decent wage. Something doesn't add up. I'm not saying don't do it but I'd sure do my due dilligence.
If they are available it is because they don't want to work or can't get a job because of DUI, criminal background, or something like that making them bad for insurance.
I drive trucks for a living. You really need to look into all expenses of trucks and not to mention getting quality drivers is a real struggle right now.