|
This type of business is not cheap by any means. Even if you are considering a cargo van, there is a big chunk of change to put up front. A new cargo van can cost in the neighborhood of $35,000. A new straight truck with an average size sleeper (72”) and a 24’ cargo box can cost around $85,000 and up. It is highly recommended that before you commit to purchasing a vehicle, that you accumulate enough funds for your down payment, first installment payment, and at least a three month reserve to cover the vehicle payment, monthly business expenses, your salary and the what-ifs.
Just to give you an idea, here are some of the expenses you may have as a business owner being an expedite independent contractor or owner operator:
Fixed Expenses (same amount each month)
Truck/Van Payment (if you own or lease the vehicle)
Vehicle damage insurance (if you own or lease the vehicle)
Vehicle liability insurance (if you own or lease the vehicle)
Vehicle Registration Permits (if you own or lease the vehicle)
Vehicle Replacement fund (or purchase fund)
Satellite Equipment (for company to track you)
Health Insurance
Occupational disability insurance
(the actual amount of these expenses is determined by your individual situation ie. size and value of vehicle, your credit score and personal factors).
Variable Expenses (different according to certain factors):
Fuel
Fuel Taxes (if applicable)
Tolls
Repairs
Communications (Pager/Phone)
Vehicle ordinary maintenance
Wages
Employment Taxes (if applicable)
Plus Your Miscellaneous Operating Expenses
(the actual amount of these expenses is determined by your individual situation and operating strategy).
It is not uncommon for the fixed expenses whether or not you run your vehicle to be over $1,500 for vans $2,000 for trucks and the total monthly bills (without wages) when you do run to be over $3,000 for vans and $5,000 for trucks so be careful to allow for the slow periods.
There are other fees you will likely incur just to get started with an expedited carrier such as: vehicle inspection, drug and alcohol testing, vehicle sign installation, satellite device installation, escrow account, and also consider the time and cost to attend the carrier orientation process. All of these fees vary depending on the specific carrier you choose.
|
