Concretejim:
Im also not into working at a loss. Never say never but i would rather stay at home, then leaving the house knowing iv already lost money.
It all depends which option is the lesser loss. The way I see it, bad days are the one upside to owning the truck and all the risk because on a bad day, if you own it outright, and it cost a lot less in the first place, you lose less by saying keep it at home.
cav551:
On the face of it from a simple mathematical perspective that sounds OK, but it seems a very worrying admission for a new start business to be contemplating that option already. Accepting work at a loss without the prospect of it being a sprat to catch a mackerel only sends out the message that one is prepared to work for that rate; the next offer will be lower still. This is not just about simple economics, it is also about exposure to risk. There is a really profitable load booked for Tuesday morning, but nothing for Monday so the loss is taken on to work the lorry, unfortunately owing to some untoward (adjective: unexpected & causing difficulties) event the vehicle ends up 150 miles away from home, so Tuesday’s load from the upset customer goes to a rival who has been hovering around for months, leading to a potential repeat situation. Obviously the same could have occured with a profitable load but sod’s law prevails.
This gives rise to an interesting dichotomy related to R&M versus ownership. On the one hand there is the risk that there may be some expensive mechanical failure which might lead the owner of the lower value older vehicle to park it for the day rather than work it at a loss. On the other hand the leasee has to consider that the fixed R&M payments include maintenance actually allocated on a daily basis, which encourages him to work the vehicle.
I’m not saying I’ll work every day for penuts Cav, just that on occasion, when the choice is lose a little working it or lose a lot keeping it parked up, the obvious better choice is working it. You go pop a lot quicker standing the wagon for two days a week than you do working it five days and making a little less profit. Neither option though is the preference.
These lease payments look cheap, but at nearly 400quid a week they’re costing the best part of 20k a year, whereas buying a cheap unit, such as one of the Premiums mentioned, If you pay ten grand for one, run it for a year and sell it for five grand, it’s cost you a hundred pounds a week, plus maintenance. Or keep it for two years and it’ll cost you 50quid a week.
Do you want to make money or look good?
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newmercman:
These lease payments look cheap, but at nearly 400quid a week they’re costing the best part of 20k a year, whereas buying a cheap unit, such as one of the Premiums mentioned, If you pay ten grand for one, run it for a year and sell it for five grand, it’s cost you a hundred pounds a week, plus maintenance. Or keep it for two years and it’ll cost you 50quid a week.
Do you want to make money or look good?
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Both, and it is possible!
nsmith1180:
newmercman:
These lease payments look cheap, but at nearly 400quid a week they’re costing the best part of 20k a year, whereas buying a cheap unit, such as one of the Premiums mentioned, If you pay ten grand for one, run it for a year and sell it for five grand, it’s cost you a hundred pounds a week, plus maintenance. Or keep it for two years and it’ll cost you 50quid a week.
Do you want to make money or look good?
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Both, and it is possible!
Absolutely [emoji41] [emoji41]
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Thanks for the replies, I know there is no chrystal ball or correct answer to the question but interesting to know what you guys think. Still no nearer making my mind up though. Will have to soon though.
Sorry to hijack this but I’m looking at buy a unit 7 years old to do traction work out of the docks paying £1.40 per mile for ccc I’ve been looking at the figures and I reckon I’d be make a £25k loss in the first year with buying the unit and setting up the O license. Where am I going wrong or are there company’s paying better money
Thats about the going rate for traction work, id say you will struggle to get any better then that.
The module in your cpc is a very good place to start to work out your costs, should give you a idea where your going wrong.
dbaker210:
Sorry to hijack this but I’m looking at buy a unit 7 years old to do traction work out of the docks paying £1.40 per mile for ccc I’ve been looking at the figures and I reckon I’d be make a £25k loss in the first year with buying the unit and setting up the O license. Where am I going wrong or are there company’s paying better money
What way are you working the figures??
Are you starting out taking on a new £70k truck■■?
£25k loss seems steep@ £1.40mile all the same!!!
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Big Truck:
dbaker210:
Sorry to hijack this but I’m looking at buy a unit 7 years old to do traction work out of the docks paying £1.40 per mile for ccc I’ve been looking at the figures and I reckon I’d be make a £25k loss in the first year with buying the unit and setting up the O license. Where am I going wrong or are there company’s paying better money
What way are you working the figures??
Are you starting out taking on a new £70k truck■■?
£25k loss seems steep@ £1.40mile all the same!!!
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Was thinking of being an owner driver, a 2011 fh 460 on finance and first time insurance and git. These were my sums if anyone thinks I’m wrong please correct me.
Outlay per week…
Truck 400
Tyres, punctures 50
Trailer hire 120
Insurance and git 125
Service station’s 100
Basic self maintenance oil, filters etc 40
Tax, mot 12
Diesel 1500mls @1.02 900
TOTAL OUTLAY £1747
Money in. 1500mls @£1.40 = £2100
Wages £353
1500mls @£1.50 = £2250
Wages £503
Nothing extra for breakdowns
I’m totally wrong in my figures as I have priced the insurance and finance.
Just busted my dreams of owner driver.
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As said by other posters, I would choose the Renault Premium, it is good truck, pulls well and comfortable to drive .
I was in a rental for a week and did not want to give her up.
Don’t get a MAN , certain models made in the same year , have EGR and engine problems resulting in being towed back.
The steering wheel is the same size of the Titanic.
Terrible blind spot on the passenger side door pillar.
Pull out on a clear road then out of nowhere a car or motorbike is there but pillar blocks view.
IMO buy a Premium outright.
Big pressure going for a new vehicle r&m… lots of used out there for good money and with a good company to carry out an inspection before you purchase then as a start up that would be my route…
My biggest piece of advice is this, if you buy outright make sure you get some warranty, and take the mechanic with you that you’ve put on you O licence, as at the end of the day he’s the guy that’ll be fixing it, he can look it over and give you a rough idea of what it’s going to cost you in the near future.
I didn’t, and it cost me dearly, almost bankrupted me, I bought a bulletproof MY58 FH, mechanically sound, but what I didn’t intend on having to do in the 1st 6 months was brakes all round, clutch, all the tyres, ishift ecu (covered by warranty, £1800) amongst other things I can’t remember now, all in all around £6k of work, I eventually gave up with the truck, took a huge loss and went to Thomas Hardie Volvo and bought another FH this time though with 24 month warranty and guaranteed parts wear, also got the mechanic to take a butchers, in 18 months I’ve replaced 2 tyres, some pads and some other nigly little bits that’s it, I’m still in debt because of the first truck, but now I’m happy and I’m buying my second truck in January, learning from my own lessons this time.
Over the cost of the 2 wagons and over the 2 years I’ve been an o/d, this was still cheaper than hiring/rm, although the stress was 5x.
Hope this helps.
Hello,
If you do buy your own unit, i would suggest you try and find who has been doing the service side of things, and give them a ring/email to see if they can confirm history, also get it checked over before you lay any money out for it, and buy local if possible, i brought a unit from the southwest when i get it delivered it was a bag of bolts so sent it back quick but it was at my cost so i brought local the 2nd time …
NEVER buy a truck unseen (even with pics sent) unless your 100% sure of seller/dealer!!!
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