The cost of becomming and Owner Operator.

First of all.

Zero down loans are for established companies. You show good income in a trucking business to get a zero down loan for a truck. You simply cant go from a plumber to trucker owner op with a zero down loan, because the income you show is for a plumber not trucking. Unless you have a massive passive income from lets say properties. Then they will get you on a personal guarantee.


Brand new driver and owner op for a truck can range from 25k - 65k per year insurance.


Truck repairs and maintenance depends on if truck is new or old. I spend about 2k a month holding up my 2013 Cascadia with 600k miles on it.

 

That sounds like a fun time.. I wonder what can go wrong.

 

Is that friend...you? Asking for a friend

 

First thing a lender will ask him is, “how long in business” most want to see two years.

His insurance premium will vary depending on city and state.

 

For what its worth. My authority was activated first week of January 2022. Between the fees to get set up. Licensing. Insurance payment for 4 months of waiting for irp to come thru. Down payment on a trailer. I spent close to 30k before i ever got in the seat to head to my first load.. Then i haul my first load and that revenue is not going to come for another 30 days. But the fuel bill still has to be paid as well as the maintenance bill..along with whatever other costs we have added to our operation. We could say thats 40k before i ever get my first check... And thats with no truck payment or any personal stuff like taking care of a family, mortgage, car payment etc... To get in with 0 money in reserve and put a loan down on a used truck. I think there is better ways to go about it.... He could easily go be a company driver for a year and bank 20k and atleast make most of the rookie mistakes in someone elses equipment. Just my 2 cents.

 

Average startup cost break down .
Used decent truck with low 300k miles - 120,000$
Down payment required 20% (24k and 7 %to 10% interest rate if credit is excellent) that put him at 1900 to 2000 monthly payment
Insurance for brand new driver is up north of 20k to 30 k . So thats another 2000 a month + 2k to 3k down-payment for insurance
Truck maintenance first year 20 k atleast
Plates 2500 for first year
Eld around 25 to 50$ a month
So the fixed monthly cost is 5500$ and thats not including fuel ,his own pay and miscellaneous stuff. And he needs atleast 20 to 30k in his account after paying that down payment.
So in total he needs 50 k in saving before he starts plus the market is pretty bad to start right now with no experience. The brokers will run him to the ground before he knows it and the fuel will empty his pockets .