60k to start a trucking company in california. Any advice?

Best advice is to wait. This is a bad time to get into the industry. Truck prices are inflated, rates are low, freight demand is dropping, parts shortages are ongoing right now, most used trucks on the market are extremely overpiced or over reasonable miles, inflation is out of control and this is compunded by a potential depression or WW3 coming up ontop of moronic EPA overreach.

Best advice is to wait at least until after the elections and likely for at least 2 or 3 years until either rates start to go back up or truck prices come down. Going in as things stand is going to be dicy as hell. Not imposible but the usual figure of 7 of 10 drivers failing is going to be closer to 9 in 10 failing with things as they stand.

 

Arctic Fox above....pretty much nailed it.

For the owner-ops out there...let me know if I've got this right: there's way too much capacity in the industry right now...and it will very likely be a while before this situation corrects itself.

Thus...coming into the market now (or anytime soon) as a new-to-the-business independent driver is a REAL-LY BAD IDEA.

Also: seriously consider moving/relocating from CA......to a MUCH MORE business/trucking-friendly state (e.g., Texas, or Oklahoma).

--Lual

 

Bossman said the other day the market is flipping.Were still hiring good drivers though.

 

Trucking always has good years and bad, it’s a cyclical industry. I do believe you can start now and succeed. I’ve been at this several years now. Under no circumstances would I start a trucking company based in CA. Like throwing money away. Seriously consider moving before hand.

 

My advice is to start your trucking company anywhere but in the state of California. That is literally the last place on the entire planet earth I would pick to start a trucking company right now. You’re gonna be a trucker, you can live anywhere. Pick a trucker friendly state to be based out of. Even if you still go back to California.

 

Start by moving to Nevada, Texas, or Washington. Wyoming would work also but it's kind of desolate and windy. Not for everybody. Some other state though that has no personal income tax and no ridiculous CA laws about trucks and everything else for that matter. (WA might be where CA is in a decade though.) If you insist on staying in CA I'd say forget it and just keep doing what you're doing. Those older emissions trucks destroy 1-truck owner ops and are lousy deals used. If you've got big bucks and good credit sure, go buy a new Pete from Peterbilt Steve and lease onto your current carrier if they will let you. With 10 years on the job and some nice seed money you're obviously a pretty stable guy and know how to stay with it. I would try for something like that if you insist on staying and operating in CA. Otherwise move out and buy a pre-emission fixer-upper for cash and take out a loan on a new(er) trailer.

 

OP, I definitely think you should save more. You'll probably need around $15k in startup costs to get legal, and on top of that I recommend paying cash for a truck. Then you'll probably need to put another $10k into getting it roadworthy. And of course you will need several months' worth of expenses in the bank in case your customers are slow about paying, or God fobid you have a breakdown and have to shell out big bucks for wrecker and repair bills while not generating revenue for several days.

Another thing - and this is important - do a lot of market research. You should be really comfortable with knowing where your freight is coming from. Look for a carrier who has a long-standing contract with reputable brokers, or better yet directly with a big shipper.

 

I'd start in another state. With commiefornia you'll have to have emissions truck and it will eat large chunk of your money. It might even make you bankrupt. I'd get pre emissions truck or properly fixed one and run it. I've wasted so much money on dpf system. I'll never be able to recoup that money.

 

Best advice in this is get the hell out of commiefornia….otherwise it should be doable, although I think every one is right that this might not be the optimal time.