Keep these videos coming. I'm a power lineman and have been for eighteen years. Great money but physically demanding. Looking for a career change. Hotshot is looking promising.
Just getting into hot shot work as a side income to my primary business... This is very helpful and a point I'd like to mention that doesn't get enough screen time is PEACE OF MIND. I had a similar truck to Josephine that stayed in the shop... Big headache and lots of downtime. I'd suggest that the aspect of "getting ripped off" is misspoken... They have to make money, they need to stay in business... In my case I simply raised my equipment prices slightly to offset the lease cost.... But in the long run, I had a huge stress taken off my shoulders and got on the road without a big deal. In my case, I used the lease aspect as leverage to put multiple trucks on the road all of which make money 7 days/week. It's a business, I don't need fancy mud flaps or lifted trucks to make me feel good, I need reliable transportation to put money in the bank. Great video... Keep it up, amazing content.
I think the enterprise rental program is a great idea especially if your planning on building a company those trucks are suppose to considered work horses. This video really helped me all i need to do is find a trailer.
That part. Get my CDL and need trailer. Intrastate mainly in the beginning. OTR later after i can purchase their maintained truck? Planning. Feedback welcomed.
Biggest thing missing in these numbers is taxes. You have next to no write offs. Repairs and maintenance are your second biggest write off. Learning to do your own repairs can easily allow you to fix alot of things cheaper and save money on labor. Another side note. If your paying 350 dollars for an oil change on your pickup , than you need to shop around. It cost me less for full service on my semi.
Oil changes in the 6.7 are about 150 bucks at the dealership. He also included both fuel filters which are not cheap, plus an hour labor to change them. 350 isn't that far off.
Shane Gunter you make some good points. I was just wondering the same thing about doing income taxes. Do you make more when renting or buying your own truck. Also whoever goes to the dealer for oil changes vs doing them themselves is a lazy person., no way I will ever pay that much money for an oil or filter changes. Lol 👍😎
Shane Gunter you make another good point and I appreciate your reply. But we have to understand clearly what defines liability and assets. From my understanding and reading Rich dad poor dads books. Liabilities eat up your money and assets make u money. It’s very hard to just come up with conclusions without really doing the numbers. I guess I will have to experiment with it and physically do it and file my income tax both way to find out for sure what’s best. If I lease idk how much can be written off. I have heard some rich people say tho it’s better to lease everything than to own it. But again I would have to make it happen both ways to clearly find out what’s more profitable. I plan to buy my trailer for sure and maybe hire down the road I definitely want to grow and progress not just be a single hot shot one man do it all operations. We’ll see what happens.....Thanks once again. 👍😎
Shane Gunter When you put on 100,000 miles a year the chance of having any equity in the vehicle is small. You would have to pay it off in three years which would make payments around $2000 a month. I have been back and fourth on this. If you could make them last 500,000 miles while maintaining reliability then that would make it worth it to own.
Juan Aldape Definitely would take doing the numbers. The only way I could see owning to be better is if you did all your own services and were planning to run the truck 300,000 miles. But that’s only 3 years worth of driving. Can you pay off your truck in that amount of time and still have equity in it and how much did you spend to keep the truck running that long. I have thought maybe having trucks that were pre Def would be worth it. Find one with a decent amount of miles and do the necessary fixes and upgrades to get better fuel mileage and be more reliable. You can buy one for $20-30,000 a spend $4-5000 on fixing and upgrades and get another 2-300,000 miles out of it. Plus the advantage of getting better fuel mileage along with some extra power. Deleting emissions related equipment is a huge savings across the board
I can totally see and understand why your doing things the way that works for you. As for me I have worked very hard over the years using my proceeds/profits to pay off and remain debtfree and invest. I am in no means wealthy, in fact my real income is at poverty levels. That being said I own my truck and equipment, I run hard when I'm in the game, but 3 weeks ago I parked and dont expect to go back out until spring. I'm keeping the fire stoked, the hot tub occupied and becoming hoarse at my grandkids basketball games. Being frugal, debtfree has its benefits, at the end of the day everyone lives the life as they chose, my choices are mine, not for everyone, I'm simply giving another way of thinking, and believe me I've made so many mistakes
Thanks for that insight from your experiences. I personally will rather pay extra for fuel & glad to pay less maintaining a gas motor. I hate the newer diesel expenses
@@aeirsone9045 have fun blowing my engine? What's that have to do with the price of tea in china? I dont drive in a manner to blow up my engine, I leave that for rookies, in the event I have any mechanical issues I'm very capable of fixing them.
Alex, you have a very informative and entertaining channel. While I enjoy the entertainment of your adventures. You are one hard working individual. I drove OTR over the 48 & Canada in 1994. I still maintain my CDL and endorsements. If I retire next year or so. I would consider running the road. To scout out where I would go for fun with a travel trailer. Your costs for Enterprise were about .235 cents per mile, plus fuel. I divided your insurance costs by your $1k insurance costs. I have better credit, so a truck would cost less. My wife has okay credit, and her 2018 truck payment is $900 month for 5 years, with $3k down. EGR failure is related to EGT. Some friends that run hotshot. Claim a better EGR life and cleaner running engine. They also went full synthetic on all fluids. Added Wetter Water to the coolant. Added a PPE transmission pan, for extra fluid capacity. And they added a small diesel generator to run an RV heat pump. Comfort and reliability is their goal. With class 8 trucks, the Carrier you lease with provides the insurance. But for the wear and tear damage on a truck, the stuff you never claim. Enterprise wins that contest without a doubt. For a newby, Enterprise is the way to go. My friends that run Hotshot are all over 35. They have life experiences that help them anticipate and deal with problems better. Alex, you show the world. That even thinking smarter. You prove that trucking is a very hard and grueling way to earn a living. But the adventure, makes many truckers experiences. So rewarding!
The EGR and DPF are highly effected by type of driving. There is a sensor that determines how much particulate had accumulated in the DPF and that triggers the EGR to run a cycle to burn off the accumulation however each time it cycles not all the accumulation of particulate can be removed and eventually the EGR will not cycle because there is too much residual particulate in the DPF is a fire risk and in Class 3 light trucks the manufacturer does not have to provide a rebuildable EGR system and the DPF is most likely bundled with the Cat Converter and will not be covered under the emission warranty and will cost $1000’s to replace. That’s the upside of leasing, when you’re not owning it, the hidden unexpected costs. Keep in mind the more often the EGR cycles the less efficient it’s going to fully restore the DPF, so it’s contributing to diminishing performance and efficiency. Commercial Medium and Heavy trucks are EGR DPF’s are mandated by Federal law to be rebuildable. Alex would say the first $1.50 per mile of loaded hot shot mileage covers expenses and unloaded dead head ? So if you’re lucky you’ll earn everything over $1.50 per mile ?
I’m in the trucking business for 15 years now and I’m considering try this new business for me but I don’t know the insurance cost is so high plus the month payments of the truck and trailer I don’t know I make around 2800$ weekly clean my truck is pay and I’m doing containers so my insurance is like 31$ per week so I’m thinking if I can make more money than that is good for me but if not aaa I don’t know
My first ram I had when I started it never gave me a problem until 200,000 miles and now I have 60,000 on my 19 and I doubt it will give me trouble as long as you change all the fluids besides oil every 50k
@@catsbyondrepair lol you are essentially spending $7,200 lol. after 500,000 miles which usually my vehicles last even doing 10~12,000 mile oil changes you would do an oil change 143 times lol 143×$50=$7,200. So basically you are saying you would rather guarantee spending $7,200 for a maybe $10,000 engine.. lmao. good luck on making any money at trucking if you doing 3,500 mile oil changes. watch the TH-cam guy who tests the oil structure using tests and the breakdown. project farm channel.
With it being 100% tax deductible, no maintenance or repair costs, new truck every 60k, it's a good deal. Breakdowns cost revenue and possibly customers if it makes you deliver late or miss a pick up.
Is it true that the lease cost I'd deductible at best, even 100% I know they deleted the lease deduction years ago for most business vehicles. Intrested in hearing facts from others. I'll also consult our accountant.
This video is probably your best ever Alex, you really made some valid points and considerations on the truck lease. People that have not been in this industry don't fully understand many of the hardships and variables they will encounter! At the end of the day, the cost of doing business is absorbant and the worry of liability, depreciation, credit risk/liquidity, down time and more make the lease for a hot shot truck in doing business very viable, even though its cost seem prohibitive. The maintenance cost and repair issues alone in these new diesels--not to mention commercial insurance would make me say "yes", it is the way to go in this day and time for the peace of mind alone in not staying stressed about the truck but only focus on staying loaded with decent paying freight and running hard to make money. STRESS is a real deal breaker for me in owing a commercial truck vs 10 years ago and if I can mitigate my exposure to known industry shortfalls- it is a no brainer for this transportation industry veteran. Knowing you can give the truck back and walk away without it ruining you financially is HUGE given the volitality of the current freight market and pricing windfall!
With enterprise business when you have a breakdown what happens, are you stuck if it takes a few day to repair the truck or do they send you another rental?
And maintenance time too not like they just let you not do any maintenance on their leased truck lmfao you still have that time and cost at the very least cost
Yes, your absolutely correct on the Enterprise rental in regard to it being a better financial option versus owning if your doing a lot of miles per month. It’s a no brainer for Buisness to keep costs as low as possible and create as much revenue as you can each month. Very good video explaining this Alex. Keep safe out there and wishing you continued success! Cheers! Jerry/ British Columbia Canada
I think my biggest takeaway from this video is when you said "your truck is there to make you money" which probably made the value of the Enterprise lease program super appealing
YOU are such a great teacher you don't have no idea how much money people pay to get this information if I see you on the road I 'll shake your hand Thank you very much MAY GOD BLESS YOU
All the large trucking companies lease their equipment for usually 3 years. Do you think they would do that if they could not write off the lease payment, in lieu of no depreciation?
Plain and simple, do your scheduled maintenance on time if not early, don't use the cheap oil or filters, use the good stuff, don't be romping around the country pedal to the metal. You take care of your truck and it will take care of you. You shouldn't have a problem reaching 500,000 miles without any major problems unless you went with anything gm
God bless you bro! Everyone wants to talk about "gross" but know one wants to talk about net after vehicle maintenance, insurance, tolls, gas, taxes, lease payments. All need to be accounted for in the transport business. Whew! almost financed a truck to do something similar to this.
My guys like the comforts of laramie options. Plus I remove bed for a steel CM Replace factory fuel tank for 55gal titan and added air ride on my 2017 and 18s. The 2019s have factory air ride. No rotating tires no alignments shitty nexens go 48k miles we charge round trip hourly so average truck does maybe 5 to 6k a month. Keep up the good videos
Great Info Alex. Enterprise doesn't have trucks available in that program right now so it's very difficult to relate right now. I'm planning to start hotshotting non-cdl next year so I feel like I have no choice but finance a truck. Is there another rental company offering this program? I've been calling Enterprise in Indiana every month (they now know my name lol).. By the way the checklist spreadsheet is awesome...(someone is actually charging for that info..)
So $15k for 5 months on lease. For another $5k you can buy a used truck and use it for 3 years. Have it paid off in less than a year and then your only cost is maintenance.
.my old truck has was bought with over 180k n ,,i my self buy 2 trucks pre 2005 ish high miles [depends] use them maintain n mod them not hard really well after you find them i do not do a lot of miles if i did i would get a older ? with dt466 n not a f350
His point that your missing is the extra cost in the program hes using is his “insurance policy”. Every 60,000 miles hes getting a brand new truck. His likelyhood of a breakdown is extremely low. That means his business is always operating. He has no down time, which 2 weeks of downtime in a year can bring the expense of ownership (through lost income AND repair costs combined) very close to the cost of his lease. Not to mention any future work you might pick up vs lose because of breakdowns (hidden costs) whos repair or wait time might be out of your control. Also not mentioned is how often people wait to get vehicles back after a repair, only to quickly find out theres another (or the same) problem. His point is that his expense vs mileage driven remains consistent, basically forever. So if your in a business where every mile driven equates to more income being made - you can EASILY calculate your expenses to learn what your future profit will be. He’s basically giving up profits short term, as insurance he will be able to work longer and profit more consistently without taking any big losses because his vehicle cant earn money. The amount of stress he’s avoiding is probably priceless. Something goes wrong - they probably give him a new truck with one phone call.
And where do you store your back-up truck? How will you get it to where you broke down, and how long will that take? Do you hire a driver to bring it to you, or do you fly to the truck and bring it back to your load?
Enterprise only leases the lower trim lines. Both options have their advantages but if you finance a truck for 5 years to hotshot, you've just dug yourself a hole that you won't climb out of. Lease one and stay in a new stripped truck or finance for 2 years and drive a loaded one. For you that worry about write offs, you'll write off about the same either way. I've had over 8 oil changes this year alone. Buy your preferred oil on sale and give it to Jiffy Lube for a total cost of $90. Another consideration is that it takes 60K miles to break in the drivers seat. Learn to change your own fuel filters (they're fairly simple). New Ford owners, don't forget the rear fuel filter.
You're completely right Ii have 3 commercial vehicles from enterprise for over 2 years now under the long term rental agreement It makes a lots of sense. Thanks for the video.
Rental is less of a gamble. You will pay 23.7 cents mile (once you add deductible) but you don’t have to worry about maintenance cost ever. When buying hot shot truck 5 year loan should not be even considered. What you should do is put same kind of money into your truck as you are putting into rental ($.20-.25 mile). This way you will pay off $50k truck shortly after 200k miles. If after 1.5-2 years your truck is paid off, and still running good you won. But if it doesn’t you can always sell it to get down payment money for a new truck and start over.
Alex your a pleasure to listen to .. no "umms" no "you know what I mean" your articulate, confident and it comes across in your videos. I'm a retired Army Colonel in the process of setting up my nonprofit. We will need a good truck, trailer combination and a sensible approach to either leasing or buying a truck. Don't expect to put more than 20k annually on the truck and will buy a trailer outright. We will be hauling a WWII Halftrack (20k lbs) around the country to educational venues and shows in support of our corporate sponsors. I like the leasing idea even though our mileage will be nowhere like yours. I am fortunate to have a well equiped restoration shop designed to support armor restoration so maintenance is something we would do ourselves. I hate the idea of buying new based on the depreciation heading off the lot especially on such a costly vehicle (Ford or Ram) similar to what you drive. I will view your how to get started video, and seek some ideas to setting our shipping operation up. I'm now a subscriber and look forward to more of your video's!
I am a contact driver for Diligent delivery service. And enterprises rental on a truck is good. And I am a class a driver too. Looking to get in to hot shot trucking in this year. Thanks for the information.
Great job. Plain and simple the winner is - rental - leaves you a no recourse exit - purchase locks you in. In hindsight I would have done a rental as well - and if I ever figure a way out of the purchase I just may.
I believe you pay almost as much interest as the amount of the truck so essentially your paying for it twice if you don't put much money down. By the way Alex, great video as usual. 2 thumbs up.
Compare to a used single axle sleeper tractor for $20,000.00 that will last for a long time. It would not be overloaded and very comfortable . Tires last longer and you would have more braking power.
The Enterprise truck rental seems like the best bet for anyone trying to start hot shot hauling or whatnot. Hey, the truck will be considered + treated like a work horse, mileage & expensive repairs are gonna come along the way after those 60,000 miles. Might as well rent something THEN switch over & be stress-free about mechanical/electrical failures along the way.
The company I work for now we rent/ lease enterprise pick ups and anything from oil change, fuel pumps to new tires enterprise pays for that’s why I’m leaning heavily into leasing one soon
I think the lease is a good value because you can lease a new truck every 60k miles. You have to run hard to justify it but it seems worth it for those people.
So does Enterprise cover all maintenance (oil, tires, etc) and services? In other words, just fuel and mileage and go? If so, then where are these services done? At a local Enterprise? Lastly, if I'm in Texas, I have to deal with the costs of delivery and pick up, does it not?
If you follow the Dodge severe duty maintenance program you have much much more than what you’re figuring. It’s oil, fuel, transmission, transfer case and both differential service every 30 or 35k. And that’s extremely expensive at the dealership. I had it done and 4 tires at the same time and I think it was $3000. Oh and by the way severe duty basically means you use it to tow.
I'm retiring from the military in a couple of years to the greatest state out there(TX) and want to hotshot I think this video just sold me on enterprise lease bc I have no collateral for a business loan to start up. Thank you Alex your vids are Awsome.
i have a used 2015 F-350 that I bought with 44k on it, I've been trucking now since the middle of November and I'm creeping up on 62k. I put $10k down and my payments are $980. We'll keep you posted on long term costs but I'm loving this badass truck so far. 33.5k gross running sped limits across Texas, New Mexico and Arizona.
Good job on the comparison Alex. The decision that is left unaddressed is, If you are just starting from zero, you have no idea what kind of miles you will be driving until you are in it for a year or more. Which is crucial to deciding to buy or to go with the long term rental. It is a dilemma.
Very good breakdown I haven't been watching all your videos yet, But I will say fuel filters and oil changes much more expensive at a service shop, I would like you to show a 3-year cost of ownership comparison when you get the chance, especially being that you're going to have to pay off a $50 to $80,000 truck at 3 years time on top of repair bills, And remember you're only gross vehicle weight around 26,000, Don't forget about the extra wear and strain that puts on a truck being at max payload all the time as far as breakdowns at 300-400-500,000 mi
I’m just trying to get started so I think this is great information thank you so much. I’m also going to need a driver so Enterprise truck leasing would greatly help. I don’t have my cdl any more so I have to get them back then I can stop working and drive for myself.
My Situation was different. Had a contract position for 1 year at the other end of the state. Own a 33' RV but no truck. Rented the truck for a weekend in May 2019 -Total truck rental $206. Drove my Malibu until end of contract. In January rented for 2 days again - total $183. No insurance, No payments, Better gas mileage, while on contract. Saved about 1/2 with a trailer rather than apartment.
Enterprise!!!!! Makes sense even IF you have the cash! Those who do have the cash are more likely to hold on to it and use the enterprise method to reduce risk of loss! Thanks for the tips .. understand that you are feeding and growing wisdom in this industry.. although many already know , there are those who simply don’t.
@@highteck9982 No, he doesn't seem to get reimbursed normally, only once because he got a botched oil change. Otherwise it seems he has to pay for everything.
@@wiredforstereo Oh ok. so he didnt ad in the costs of those and they were added into owning category. So some info is missing still. thank you for fast reply
Did you ever claim any deductions on your taxes while using your old truck for business purposes? If so, what were you able to claim? And is it possible to do this for your current situation with the leased truck? If any of these are significant amounts how does it affect the graph you made for cost/mile? Maybe this can be a part 2 if there's enough information to discuss.
I'm not a load hauler but your cost comparison and rational is spot on. Problem is that the average person that doesn't understand operational cost comparison and cost of ops won't believe you or be able to grasp the concept. Yes, @ $.22/mile it's a better financial bet, long term, to shed the financial risk off of yourself. Period. End of story. Any company CFO would agree if they were looking long term. Yes, any 1 specific truck MAY workout financially through purchase but odds are eventually your cost will be higher overall.
Wonderful informative video Alex. As you said the most important variable is your productivity and efficiency...one has to find an option that brings out the most revenue with fewer hassles. I think leasing/rent is the better option.
Excellent information. You help a lot of people . Perhaps I missed it, why did you buy the big dualie when this lease sounds like the way to go for most people
You’re much better off leasing, because less risk with known costs so you can plan your year more accurately. If you really study how an EGR system functions in a light diesel truck, you don’t want to own it. Alex I’m thinking for business purposes the first $1.50 per mile needs to be allocated for operating expenses to include outsourcing costs as your estimated cost of being in hot shot business leasing an enterprise truck, would you agree ?
Thank you very much I really liked the video and how well explained it is and at the end of the day and what these are saying I liked the renting more than buying the truck.
Just called Enterprise today they told me they don't have any truck available for this program right now and it could be the end of 2022 before they get any if they decide to bring it back can anyone out there point me to another program similar to this
There was one point you missed unless i didnt hear it and that is "Do what works for yourself and your business plan, and not what is working for others." People keep forgeting about that part because there are so many pros/cons to all the decesions they have to make, LTR vs Buy (finance new), Finance vs Buy outright, New vs Used, Make of truck, options of truck, size of truck, color of truck. I get this is in a way what you were going over, but there are some that dont get that. Dont get me wrong, i love the videos you put out, it helps put the knowledge out there and eventually it'll weed out those that cant make/do it, get equipment out there for a less cost because someone needs to recoup money they loss in their venture, and help those get into and start that know how to, want to, have the knowledge, while all staying in a budget they work better around. Anything can be for everyone, but not everyone can be for anything.
I'm sure this was covered in one of your previous videos, but what hitches (gooseneck/fifth wheel/ball) does the Enterprise rental come with? If none, what are the costs associated with adding and removing them? Thanks.
I saw basic bed rails. So a GN plate is @$140 most anywhere. 4pins, clips and ready to hook, pretrip. Or get a 5th wheel plate and hook up to RV. Brake controller already installed. I think Alex May be buying his own truck soon. As Owner, reducing miles... $70k to have a boss truck, backup as needed... will look pretty good if insurance not outrageous. I looked. Saw a few 4+ yr old dually with under 50k 5th plate at not a bad price. He does make a dang good argument for renting. He’s paying near $28k a year rental now?
When getting into hotshot, do you think it is best to start with a rental, or finance a truck get established, and then do the enterprise rental? I’m planning on leasing on with a company when I get into hot shot
I don't understand why everyone thinks they need a new truck? I bought a 16 cummins a few months ago for 36k. It had 58k miles. I pay $500 a month. If you do the math your paying around 26k for 120,000 miles. 53k for 240,000 miles. 105k for 480,000 miles sounds crazy to me.I would guess I can get at least 480,000 out of my truck that i got for 36k with out putting $69000 into lol
Watching this video in 2023 and could not agree more. I run 100K+ a year(2k-3k per week) and have done it both ways. I'm telling you right now, being able to just walk away from a truck that has issues and get handed a new one is worth EVERY SINGLE PENNY and then some. One thing people forget is that dumping a truck that is 2-3 years old and has 200k-300k mi is going to give you e HEFTY amount of negative equity when comes time to trade it in. Like $1000's that get rolled over into the next finance contract...which then requires MORE down-payment money.
Great info., brother. In the process of getting my LLC right now for hauling. You give a lot of food for thought. Hadn't really considered using a rental.....but the piece of mind in not putting 60-K miles on my personal truck in a short period of time sounds well worth the .22-cents/mile rent fee and $230/month for Enterprise' insurance (I have a great driving record). I DO want to be comfortable in the rental, though. The 'Tradesman' or 'WT' packages are pretty basic, huh?
I don't know about that 60k miles program where you just pay 22 cents per mile, but I just broke my rental agreement with Enterprise because of the 18 cents per, PLUS the base $2400-2500 a month payment. Therefore, I was averaging $2600-$2800 a month payment and not even running otr, just regionally... if that. So no... it's not just cents per mile. Bought a RAM truck for $900 a month payment for something I'll own later, extra free up money I'll have to put in maintenance, but not as much for how I run my loads. So, I'm making more of a profit than giving Enterprise all my money!
So here is the question I have when starting up and getting your mc numbers doesnt the fmcsa ask for insurance coverage carrier as well as coverage amounts and doesn't your commerical policy ask what kind of vehicle you will be driving I attempted to get started running otr class a and couldn't get insurance coverage for a company entity because I was unable to tell them what I was driving for a 2 week period at a time they wanted a rig that was insured all year not 2 weeks at a time
Hands-down the rental is far better than purchasing your own truck the only drawback you got a move every 5 to 6 months if you own your own truck in three or four years you got a piece of junk or a high maintenance wore out truck enterprise long-term rental you get a new one every six months it’s a no-brainer get new technology new updates and gadgets everything better all the way around and a consistent payment you pay the same every month depending on your consistent miles if I didn’t live in Alaska I’d be down there running in my own enterprise rental
I was watching another video that mentioned Enterprise wants $3700 down. I don’t know more particulars then that, but worth a mention that you don’t just walk in and get a new truck. Keep up the great videos! Thank You, Happy New Years
makes financial sense if you’re building a company, I use to work for a mom and pop trucking company they had Penske leases they took care of everything including breakdowns ,maintenance etc etc , although it was a pain when trucks weren’t available
Great video TP! One thing I might add though... double down on payment, to pay the truck off in half the time of a traditional loan. Double the miles, you’ll want to trade it off in half the time. Avoid half of the major problems.
Do you have to be in business for 2 years? I’ve spoken with 2 different leasing companies and they want my MC / DOT to be 2 years active? My authority is 4 months old and am having to buy old beaters because financing (I paid cash for my flatbed & box truck) and the maintenance is killin me!
Going outside the [] I was thinking finding a good used truck for a good price. Save up for another used truck so I have one always towing. Knowing how to fix them makes a big difference in this industry. I got my van for free I've been towing with the last few years So far new rear axle, and baring, fount bushings, gas pump, crack shaft sensor (rebuild of the tranmitter), 2 sets of tiers, coil, relay, second battery etc. Doing wrench work on my own made me able to keep this E150 Ford going. Over 200,000mls Or I would have junked it. The last 4 days I worked 4 hours each day and made 320 cash. People are calling me. 🤗 Hauling junk to the dump. Thanks for the info Now I'm thinking of taking it to the next level.
You would need to put down 10k or so if you had good credit to get that loan payment. Five year loan is going to cost you $9,500 in interest on top of increase maintenance costs, plus you will depreciate that truck fast.
1- does enterprise pay for tires on lease 2- what is tax benefits for lease vs finance ( is lease $ totally deductible as opposed to depreciation of finance) 3-if on enterprise program, will they step up if truck is lemon give u replacement
what about financing for short term and then trade in and refinancing - again and again? this way you get the benefit of growing a good business credit profile and you get trucks that are covered by warranty - and also are lower mileage - before they are old you trade them in for refinancing and new warranty with good emissions. "buy" them gently used, and then trade them in after you drive @ 75k for a "new" gently used truck covered by warranty.
Keep these videos coming. I'm a power lineman and have been for eighteen years. Great money but physically demanding. Looking for a career change. Hotshot is looking promising.
Just getting into hot shot work as a side income to my primary business... This is very helpful and a point I'd like to mention that doesn't get enough screen time is PEACE OF MIND. I had a similar truck to Josephine that stayed in the shop... Big headache and lots of downtime.
I'd suggest that the aspect of "getting ripped off" is misspoken... They have to make money, they need to stay in business... In my case I simply raised my equipment prices slightly to offset the lease cost.... But in the long run, I had a huge stress taken off my shoulders and got on the road without a big deal. In my case, I used the lease aspect as leverage to put multiple trucks on the road all of which make money 7 days/week. It's a business, I don't need fancy mud flaps or lifted trucks to make me feel good, I need reliable transportation to put money in the bank. Great video... Keep it up, amazing content.
Very informative, thank you.
I think the enterprise rental program is a great idea especially if your planning on building a company those trucks are suppose to considered work horses. This video really helped me all i need to do is find a trailer.
That part. Get my CDL and need trailer. Intrastate mainly in the beginning. OTR later after i can purchase their maintained truck? Planning. Feedback welcomed.
I'm calling around begging people to rent me out a trailer 😭
@@kayproper966 rent the truck rent the trailer
@@bigpressure00 who would you recommend to rent a 25ft deck-over tilt trailer from???
Best way is to hire owner operators and just dispatch
Finally someone who knows what they're talking about
Could you make a video explaining how to start a hot shot trucking business with a enterprise rental?
Have we got this video yet?
Biggest thing missing in these numbers is taxes. You have next to no write offs. Repairs and maintenance are your second biggest write off. Learning to do your own repairs can easily allow you to fix alot of things cheaper and save money on labor.
Another side note. If your paying 350 dollars for an oil change on your pickup , than you need to shop around. It cost me less for full service on my semi.
Oil changes in the 6.7 are about 150 bucks at the dealership. He also included both fuel filters which are not cheap, plus an hour labor to change them. 350 isn't that far off.
Shane Gunter you make some good points. I was just wondering the same thing about doing income taxes. Do you make more when renting or buying your own truck. Also whoever goes to the dealer for oil changes vs doing them themselves is a lazy person., no way I will ever pay that much money for an oil or filter changes. Lol 👍😎
Shane Gunter you make another good point and I appreciate your reply. But we have to understand clearly what defines liability and assets. From my understanding and reading Rich dad poor dads books. Liabilities eat up your money and assets make u money. It’s very hard to just come up with conclusions without really doing the numbers. I guess I will have to experiment with it and physically do it and file my income tax both way to find out for sure what’s best. If I lease idk how much can be written off. I have heard some rich people say tho it’s better to lease everything than to own it. But again I would have to make it happen both ways to clearly find out what’s more profitable. I plan to buy my trailer for sure and maybe hire down the road I definitely want to grow and progress not just be a single hot shot one man do it all operations. We’ll see what happens.....Thanks once again. 👍😎
Shane Gunter When you put on 100,000 miles a year the chance of having any equity in the vehicle is small. You would have to pay it off in three years which would make payments around $2000 a month. I have been back and fourth on this. If you could make them last 500,000 miles while maintaining reliability then that would make it worth it to own.
Juan Aldape Definitely would take doing the numbers. The only way I could see owning to be better is if you did all your own services and were planning to run the truck 300,000 miles. But that’s only 3 years worth of driving. Can you pay off your truck in that amount of time and still have equity in it and how much did you spend to keep the truck running that long. I have thought maybe having trucks that were pre Def would be worth it. Find one with a decent amount of miles and do the necessary fixes and upgrades to get better fuel mileage and be more reliable. You can buy one for $20-30,000 a spend $4-5000 on fixing and upgrades and get another 2-300,000 miles out of it. Plus the advantage of getting better fuel mileage along with some extra power. Deleting emissions related equipment is a huge savings across the board
I can totally see and understand why your doing things the way that works for you. As for me I have worked very hard over the years using my proceeds/profits to pay off and remain debtfree and invest. I am in no means wealthy, in fact my real income is at poverty levels. That being said I own my truck and equipment, I run hard when I'm in the game, but 3 weeks ago I parked and dont expect to go back out until spring. I'm keeping the fire stoked, the hot tub occupied and becoming hoarse at my grandkids basketball games. Being frugal, debtfree has its benefits, at the end of the day everyone lives the life as they chose, my choices are mine, not for everyone, I'm simply giving another way of thinking, and believe me I've made so many mistakes
Thanks for that insight from your experiences. I personally will rather pay extra for fuel & glad to pay less maintaining a gas motor. I hate the newer diesel expenses
Have fun blowing your engine.
@@aeirsone9045 have fun blowing my engine? What's that have to do with the price of tea in china? I dont drive in a manner to blow up my engine, I leave that for rookies, in the event I have any mechanical issues I'm very capable of fixing them.
This is a year old now, I'm under the impression that enterprise is doing things a little different now. They definitely asked about my credit.
What did you end up doing
I called and didn't tell about hot shot, I'm in concrete and they just wanted a credit card 3k which I don't have 😢
Alex, you have a very informative and entertaining channel. While I enjoy the entertainment of your adventures. You are one hard working individual. I drove OTR over the 48 & Canada in 1994. I still maintain my CDL and endorsements.
If I retire next year or so. I would consider running the road. To scout out where I would go for fun with a travel trailer.
Your costs for Enterprise were about .235 cents per mile, plus fuel. I divided your insurance costs by your $1k insurance costs. I have better credit, so a truck would cost less. My wife has okay credit, and her 2018 truck payment is $900 month for 5 years, with $3k down.
EGR failure is related to EGT. Some friends that run hotshot. Claim a better EGR life and cleaner running engine. They also went full synthetic on all fluids. Added Wetter Water to the coolant. Added a PPE transmission pan, for extra fluid capacity. And they added a small diesel generator to run an RV heat pump. Comfort and reliability is their goal.
With class 8 trucks, the Carrier you lease with provides the insurance. But for the wear and tear damage on a truck, the stuff you never claim. Enterprise wins that contest without a doubt.
For a newby, Enterprise is the way to go. My friends that run Hotshot are all over 35. They have life experiences that help them anticipate and deal with problems better.
Alex, you show the world. That even thinking smarter. You prove that trucking is a very hard and grueling way to earn a living. But the adventure, makes many truckers experiences. So rewarding!
The EGR and DPF are highly effected by type of driving. There is a sensor that determines how much particulate had accumulated in the DPF and that triggers the EGR to run a cycle to burn off the accumulation however each time it cycles not all the accumulation of particulate can be removed and eventually the EGR will not cycle because there is too much residual particulate in the DPF is a fire risk and in Class 3 light trucks the manufacturer does not have to provide a rebuildable EGR system and the DPF is most likely bundled with the Cat Converter and will not be covered under the emission warranty and will cost $1000’s to replace. That’s the upside of leasing, when you’re not owning it, the hidden unexpected costs. Keep in mind the more often the EGR cycles the less efficient it’s going to fully restore the DPF, so it’s contributing to diminishing performance and efficiency. Commercial Medium and Heavy trucks are EGR DPF’s are mandated by Federal law to be rebuildable. Alex would say the first $1.50 per mile of loaded hot shot mileage covers expenses and unloaded dead head ? So if you’re lucky you’ll earn everything over $1.50 per mile ?
I’m in the trucking business for 15 years now and I’m considering try this new business for me but I don’t know the insurance cost is so high plus the month payments of the truck and trailer I don’t know I make around 2800$ weekly clean my truck is pay and I’m doing containers so my insurance is like 31$ per week so I’m thinking if I can make more money than that is good for me but if not aaa I don’t know
Thanks brother this information help me a lil I always thought buying your own truck is the only way to go appreciated your videos keep it up ...
My first ram I had when I started it never gave me a problem until 200,000 miles and now I have 60,000 on my 19 and I doubt it will give me trouble as long as you change all the fluids besides oil every 50k
I change all fluids on my semi every 3500 miles.
@@catsbyondrepair No you don't.
@@catsbyondrepair lol you really shouldn't. waste of money. fluids are made these days to last 10,000 miles or even more.
@@johnlim123 i would rather spend 50 on a oil change than 10'000 on a engine.
@@catsbyondrepair lol you are essentially spending $7,200 lol. after 500,000 miles which usually my vehicles last even doing 10~12,000 mile oil changes you would do an oil change 143 times lol 143×$50=$7,200. So basically you are saying you would rather guarantee spending $7,200 for a maybe $10,000 engine.. lmao. good luck on making any money at trucking if you doing 3,500 mile oil changes. watch the TH-cam guy who tests the oil structure using tests and the breakdown. project farm channel.
Before one makes up their mind, run it by your accountant. There are positives and negatives to renting, leasing and buying.
With it being 100% tax deductible, no maintenance or repair costs, new truck every 60k, it's a good deal. Breakdowns cost revenue and possibly customers if it makes you deliver late or miss a pick up.
You don't get 100% back as a right off. The lease is a rip off
Is it true that the lease cost I'd deductible at best, even 100%
I know they deleted the lease deduction years ago for most business vehicles.
Intrested in hearing facts from others.
I'll also consult our accountant.
This video is probably your best ever Alex, you really made some valid points and considerations on the truck lease. People that have not been in this industry don't fully understand many of the hardships and variables they will encounter!
At the end of the day, the cost of doing business is absorbant and the worry of liability, depreciation, credit risk/liquidity, down time and more make the lease for a hot shot truck in doing business very viable, even though its cost seem prohibitive. The maintenance cost and repair issues alone in these new diesels--not to mention commercial insurance would make me say "yes", it is the way to go in this day and time for the peace of mind alone in not staying stressed about the truck but only focus on staying loaded with decent paying freight and running hard to make money. STRESS is a real deal breaker for me in owing a commercial truck vs 10 years ago and if I can mitigate my exposure to known industry shortfalls- it is a no brainer for this transportation industry veteran. Knowing you can give the truck back and walk away without it ruining you financially is HUGE given the volitality of the current freight market and pricing windfall!
With enterprise business when you have a breakdown what happens, are you stuck if it takes a few day to repair the truck or do they send you another rental?
Good question
You have the best idea of hiring owner operators and let them have the risk of breakdowns. You just dispatch
And maintenance time too not like they just let you not do any maintenance on their leased truck lmfao you still have that time and cost at the very least cost
Yes, your absolutely correct on the Enterprise rental in regard to it being a better financial option versus owning if your doing a lot of miles per month. It’s a no brainer for Buisness to keep costs as low as possible and create as much revenue as you can each month.
Very good video explaining this Alex.
Keep safe out there and wishing you continued success!
Cheers!
Jerry/ British Columbia Canada
They need glider kits for hotshot trucks....take older bodies and put modern drivetrains with no emissions and run it till the wheels fall off
You're a better person than me. I wouldn't share my bread and butter with everyone. You're a good person.
I think my biggest takeaway from this video is when you said "your truck is there to make you money" which probably made the value of the Enterprise lease program super appealing
Will you ever redo the list of everything to start hotshotting since it’s no longer on the website
Great points, I’m sure the lease also gives you a piece of mind knowing that your not responsible for any repairs. .
YOU are such a great teacher you don't have no idea how much money people pay to get this information if I see you on the road I 'll shake your hand Thank you very much MAY GOD BLESS YOU
All the large trucking companies lease their equipment for usually 3 years. Do you think they would do that if they could not write off the lease payment, in lieu of no depreciation?
Plain and simple, do your scheduled maintenance on time if not early, don't use the cheap oil or filters, use the good stuff, don't be romping around the country pedal to the metal. You take care of your truck and it will take care of you. You shouldn't have a problem reaching 500,000 miles without any major problems unless you went with anything gm
God bless you bro! Everyone wants to talk about "gross" but know one wants to talk about net after vehicle maintenance, insurance, tolls, gas, taxes, lease payments. All need to be accounted for in the transport business. Whew! almost financed a truck to do something similar to this.
My guys like the comforts of laramie options. Plus I remove bed for a steel CM
Replace factory fuel tank for 55gal titan and added air ride on my 2017 and 18s. The 2019s have factory air ride. No rotating tires no alignments shitty nexens go 48k miles we charge round trip hourly so average truck does maybe 5 to 6k a month. Keep up the good videos
Great Info Alex. Enterprise doesn't have trucks available in that program right now so it's very difficult to relate right now. I'm planning to start hotshotting non-cdl next year so I feel like I have no choice but finance a truck. Is there another rental company offering this program? I've been calling Enterprise in Indiana every month (they now know my name lol).. By the way the checklist spreadsheet is awesome...(someone is actually charging for that info..)
So $15k for 5 months on lease. For another $5k you can buy a used truck and use it for 3 years. Have it paid off in less than a year and then your only cost is maintenance.
.my old truck has was bought with over 180k n ,,i my self buy 2 trucks pre 2005 ish high miles [depends] use them maintain n mod them not hard really well after you find them i do not do a lot of miles if i did i would get a older ? with dt466 n not a f350
His point that your missing is the extra cost in the program hes using is his “insurance policy”. Every 60,000 miles hes getting a brand new truck. His likelyhood of a breakdown is extremely low. That means his business is always operating. He has no down time, which 2 weeks of downtime in a year can bring the expense of ownership (through lost income AND repair costs combined) very close to the cost of his lease. Not to mention any future work you might pick up vs lose because of breakdowns (hidden costs) whos repair or wait time might be out of your control. Also not mentioned is how often people wait to get vehicles back after a repair, only to quickly find out theres another (or the same) problem. His point is that his expense vs mileage driven remains consistent, basically forever. So if your in a business where every mile driven equates to more income being made - you can EASILY calculate your expenses to learn what your future profit will be. He’s basically giving up profits short term, as insurance he will be able to work longer and profit more consistently without taking any big losses because his vehicle cant earn money. The amount of stress he’s avoiding is probably priceless. Something goes wrong - they probably give him a new truck with one phone call.
@@kctyphoon only if you dont get a backup truck to put on service while your main one is down. . any fleet needs extra equipment to minimize downtime.
*He literally went over this...* If you're a mechanic who can repair and maintain a used truck, the Enterprise lease is NOT for you.
And where do you store your back-up truck? How will you get it to where you broke down, and how long will that take? Do you hire a driver to bring it to you, or do you fly to the truck and bring it back to your load?
Enterprise only leases the lower trim lines. Both options have their advantages but if you finance a truck for 5 years to hotshot, you've just dug yourself a hole that you won't climb out of. Lease one and stay in a new stripped truck or finance for 2 years and drive a loaded one. For you that worry about write offs, you'll write off about the same either way. I've had over 8 oil changes this year alone. Buy your preferred oil on sale and give it to Jiffy Lube for a total cost of $90. Another consideration is that it takes 60K miles to break in the drivers seat. Learn to change your own fuel filters (they're fairly simple). New Ford owners, don't forget the rear fuel filter.
You're completely right
Ii have 3 commercial vehicles from enterprise for over 2 years now under the long term rental agreement
It makes a lots of sense.
Thanks for the video.
Which location did you get yours from? My local locations all said they don't do it.
Your analysis make a lot of sense, and I think you are spot on in pretty much all you've said...
Great content and you’re so right on point after the 60,000 miles.
After owning 3 semis , we felt the pain of operating costs ...... Happy Holidays !
Rental is less of a gamble. You will pay 23.7 cents mile (once you add deductible) but you don’t have to worry about maintenance cost ever.
When buying hot shot truck 5 year loan should not be even considered.
What you should do is put same kind of money into your truck as you are putting into rental ($.20-.25 mile). This way you will pay off $50k truck shortly after 200k miles.
If after 1.5-2 years your truck is paid off, and still running good you won. But if it doesn’t you can always sell it to get down payment money for a new truck and start over.
Alex your a pleasure to listen to .. no "umms" no "you know what I mean" your articulate, confident and it comes across in your videos. I'm a retired Army Colonel in the process of setting up my nonprofit. We will need a good truck, trailer combination and a sensible approach to either leasing or buying a truck. Don't expect to put more than 20k annually on the truck and will buy a trailer outright. We will be hauling a WWII Halftrack (20k lbs) around the country to educational venues and shows in support of our corporate sponsors. I like the leasing idea even though our mileage will be nowhere like yours. I am fortunate to have a well equiped restoration shop designed to support armor restoration so maintenance is something we would do ourselves. I hate the idea of buying new based on the depreciation heading off the lot especially on such a costly vehicle (Ford or Ram) similar to what you drive. I will view your how to get started video, and seek some ideas to setting our shipping operation up. I'm now a subscriber and look forward to more of your video's!
I am a contact driver for Diligent delivery service. And enterprises rental on a truck is good. And I am a class a driver too. Looking to get in to hot shot trucking in this year. Thanks for the information.
Great job. Plain and simple the winner is - rental - leaves you a no recourse exit - purchase locks you in. In hindsight I would have done a rental as well - and if I ever figure a way out of the purchase I just may.
Most of this applies to cdl hauling too
You have to figure in depreciation and interest on your loan when you buy. Depreciation is a pretty big hit.
I believe you pay almost as much interest as the amount of the truck so essentially your paying for it twice if you don't put much money down.
By the way Alex, great video as usual. 2 thumbs up.
@@stevelehman79 hahaha!! Worst case 7 percent interest rate which is high, 50k loan for 4 years is 57k if do 5 years its 59k
I didn't go on a calculator to figure it out but I believe you are using simple interest instead of amortized interest. I could be wrong.
Holton C. you are right, I just ran a calculator and for a 65,000 loan you would pay $10,000 @ 6% interest
@@stevelehman79 The figures he gave were for an amortized loan. The actual figures would be $57,471 and $59,404
Sounds like a smart way to start the business. Takes alot of headaches away.
Compare to a used single axle sleeper tractor for $20,000.00 that will last for a long time. It would not be overloaded and very comfortable . Tires last longer and you would have more braking power.
The Enterprise truck rental seems like the best bet for anyone trying to start hot shot hauling or whatnot. Hey, the truck will be considered + treated like a work horse, mileage & expensive repairs are gonna come along the way after those 60,000 miles. Might as well rent something THEN switch over & be stress-free about mechanical/electrical failures along the way.
Every Would be trucker need to watch this, regardless of niche. Especially about the credit aspect. I learned that the hardway
Great video. I see why the market is flooded with 65000 plus mileage trucks... Because of the mechanics.
Question on the Enterprise Lease. Do you pay for the services or is that included with the lease/rental agreement?
The company I work for now we rent/ lease enterprise pick ups and anything from oil change, fuel pumps to new tires enterprise pays for that’s why I’m leaning heavily into leasing one soon
I think the lease is a good value because you can lease a new truck every 60k miles. You have to run hard to justify it but it seems worth it for those people.
So does Enterprise cover all maintenance (oil, tires, etc) and services?
In other words, just fuel and mileage and go?
If so, then where are these services done? At a local Enterprise?
Lastly, if I'm in Texas, I have to deal with the costs of delivery and pick up, does it not?
Hey Bro... I really like your informative video! Awesome ! BTW, do have the Enterprise Rental info ?
If you follow the Dodge severe duty maintenance program you have much much more than what you’re figuring. It’s oil, fuel, transmission, transfer case and both differential service every 30 or 35k. And that’s extremely expensive at the dealership. I had it done and 4 tires at the same time and I think it was $3000. Oh and by the way severe duty basically means you use it to tow.
I'm retiring from the military in a couple of years to the greatest state out there(TX) and want to hotshot I think this video just sold me on enterprise lease bc I have no collateral for a business loan to start up. Thank you Alex your vids are Awsome.
i have a used 2015 F-350 that I bought with 44k on it, I've been trucking now since the middle of November and I'm creeping up on 62k. I put $10k down and my payments are $980. We'll keep you posted on long term costs but I'm loving this badass truck so far. 33.5k gross running sped limits across Texas, New Mexico and Arizona.
Great job on the analysis. This information is gold for anyone who wants to be profitable.
Ya that is a relief not having to worry about ya truck. Definitely I would do the lease for sure.
Worth it for sure!!
Ik it’s random but the view of the sky behind you 🤩
Good job on the comparison Alex. The decision that is left unaddressed is, If you are just starting from zero, you have no idea what kind of miles you will be driving until you are in it for a year or more. Which is crucial to deciding to buy or to go with the long term rental. It is a dilemma.
As I understand it, the only fixed monthly cost of lease is the insurance. You're paying $0.22/mile whether you drive 5k/mo or 50k. Right?
Very good breakdown I haven't been watching all your videos yet, But I will say fuel filters and oil changes much more expensive at a service shop, I would like you to show a 3-year cost of ownership comparison when you get the chance, especially being that you're going to have to pay off a $50 to $80,000 truck at 3 years time on top of repair bills,
And remember you're only gross vehicle weight around 26,000, Don't forget about the extra wear and strain that puts on a truck being at max payload all the time as far as breakdowns at 300-400-500,000 mi
Man your content and the way that you break this down is amazing. Thanks for the info
I’m just trying to get started so I think this is great information thank you so much. I’m also going to need a driver so Enterprise truck leasing would greatly help. I don’t have my cdl any more so I have to get them back then I can stop working and drive for myself.
I have my CDL...I just dont have a truck and Trailer.
I would like to know where to go to get one. It seems like a good way to star. What enterprise do you use? What are the hitch options?
He has another video. He uses someone in Indiana.
My Situation was different. Had a contract position for 1 year at the other end of the state. Own a 33' RV but no truck. Rented the truck for a weekend in May 2019 -Total truck rental $206. Drove my Malibu until end of contract. In January rented for 2 days again - total $183. No insurance, No payments, Better gas mileage, while on contract. Saved about 1/2 with a trailer rather than apartment.
Good information! It all depends on how long you are planning to be in the industry? Most businesses don't last longer than 3 to 4 years.
Why did you take down the faq? It won’t come up for me
You just dropped a jewel I appreciate you TP!
TP, what a video man! Awesome content. You share it all- something some people wouldn’t think about sharing. 💪🏽💪🏽💯💯 simply great.
Enterprise!!!!! Makes sense even IF you have the cash! Those who do have the cash are more likely to hold on to it and use the enterprise method to reduce risk of loss! Thanks for the tips .. understand that you are feeding and growing wisdom in this industry.. although many already know , there are those who simply don’t.
Great point
Is all maintenance covered by enterprise when renting? Oil - filters - tires- etc?
Doesn't seem like it. In a recent video he got a bad one and Enterprise reimbursed him for the cost of it.
U
@@wiredforstereo so then yes? if he got reimbursed then they covered it. just not right away. unless you have a typo somewhere.
@@highteck9982 No, he doesn't seem to get reimbursed normally, only once because he got a botched oil change. Otherwise it seems he has to pay for everything.
@@wiredforstereo Oh ok. so he didnt ad in the costs of those and they were added into owning category. So some info is missing still. thank you for fast reply
Did you ever claim any deductions on your taxes while using your old truck for business purposes? If so, what were you able to claim? And is it possible to do this for your current situation with the leased truck? If any of these are significant amounts how does it affect the graph you made for cost/mile?
Maybe this can be a part 2 if there's enough information to discuss.
I'm not a load hauler but your cost comparison and rational is spot on. Problem is that the average person that doesn't understand operational cost comparison and cost of ops won't believe you or be able to grasp the concept. Yes, @ $.22/mile it's a better financial bet, long term, to shed the financial risk off of yourself. Period. End of story. Any company CFO would agree if they were looking long term. Yes, any 1 specific truck MAY workout financially through purchase but odds are eventually your cost will be higher overall.
DUDE thank you.I don't think you can get any info like this anywhere.
Wonderful informative video Alex. As you said the most important variable is your productivity and efficiency...one has to find an option that brings out the most revenue with fewer hassles. I think leasing/rent is the better option.
Excellent information. You help a lot of people . Perhaps I missed it, why did you buy the big dualie when this lease sounds like the way to go for most people
You’re much better off leasing, because less risk with known costs so you can plan your year more accurately. If you really study how an EGR system functions in a light diesel truck, you don’t want to own it. Alex I’m thinking for business purposes the first $1.50 per mile needs to be allocated for operating expenses to include outsourcing costs as your estimated cost of being in hot shot business leasing an enterprise truck, would you agree ?
Thank you very much I really liked the video and how well explained it is and at the end of the day and what these are saying I liked the renting more than buying the truck.
Just called Enterprise today they told me they don't have any truck available for this program right now and it could be the end of 2022 before they get any if they decide to bring it back can anyone out there point me to another program similar to this
There was one point you missed unless i didnt hear it and that is "Do what works for yourself and your business plan, and not what is working for others." People keep forgeting about that part because there are so many pros/cons to all the decesions they have to make, LTR vs Buy (finance new), Finance vs Buy outright, New vs Used, Make of truck, options of truck, size of truck, color of truck.
I get this is in a way what you were going over, but there are some that dont get that. Dont get me wrong, i love the videos you put out, it helps put the knowledge out there and eventually it'll weed out those that cant make/do it, get equipment out there for a less cost because someone needs to recoup money they loss in their venture, and help those get into and start that know how to, want to, have the knowledge, while all staying in a budget they work better around.
Anything can be for everyone, but not everyone can be for anything.
I'm sure this was covered in one of your previous videos, but what hitches (gooseneck/fifth wheel/ball) does the Enterprise rental come with? If none, what are the costs associated with adding and removing them? Thanks.
I saw basic bed rails. So a GN plate is @$140 most anywhere. 4pins, clips and ready to hook, pretrip. Or get a 5th wheel plate and hook up to RV. Brake controller already installed.
I think Alex May be buying his own truck soon. As Owner, reducing miles... $70k to have a boss truck, backup as needed... will look pretty good if insurance not outrageous. I looked. Saw a few 4+ yr old dually with under 50k 5th plate at not a bad price. He does make a dang good argument for renting. He’s paying near $28k a year rental now?
When getting into hotshot, do you think it is best to start with a rental, or finance a truck get established, and then do the enterprise rental? I’m planning on leasing on with a company when I get into hot shot
I don't understand why everyone thinks they need a new truck? I bought a 16 cummins a few months ago for 36k. It had 58k miles. I pay $500 a month. If you do the math your paying around 26k for 120,000 miles. 53k for 240,000 miles. 105k for 480,000 miles sounds crazy to me.I would guess I can get at least 480,000 out of my truck that i got for 36k with out putting $69000 into lol
How do you configure a bed with a rental truck?
Watching this video in 2023 and could not agree more. I run 100K+ a year(2k-3k per week) and have done it both ways. I'm telling you right now, being able to just walk away from a truck that has issues and get handed a new one is worth EVERY SINGLE PENNY and then some. One thing people forget is that dumping a truck that is 2-3 years old and has 200k-300k mi is going to give you e HEFTY amount of negative equity when comes time to trade it in. Like $1000's that get rolled over into the next finance contract...which then requires MORE down-payment money.
excellent point made
Great info., brother. In the process of getting my LLC right now for hauling. You give a lot of food for thought. Hadn't really considered using a rental.....but the piece of mind in not putting 60-K miles on my personal truck in a short period of time sounds well worth the .22-cents/mile rent fee and $230/month for Enterprise' insurance (I have a great driving record). I DO want to be comfortable in the rental, though. The 'Tradesman' or 'WT' packages are pretty basic, huh?
IDK, compared to my (4) 20-30yo work trucks, a modern fleet-level trim seems downright cushy! 😁
I don't know about that 60k miles program where you just pay 22 cents per mile, but I just broke my rental agreement with Enterprise because of the 18 cents per, PLUS the base $2400-2500 a month payment. Therefore, I was averaging $2600-$2800 a month payment and not even running otr, just regionally... if that. So no... it's not just cents per mile. Bought a RAM truck for $900 a month payment for something I'll own later, extra free up money I'll have to put in maintenance, but not as much for how I run my loads. So, I'm making more of a profit than giving Enterprise all my money!
So here is the question I have when starting up and getting your mc numbers doesnt the fmcsa ask for insurance coverage carrier as well as coverage amounts and doesn't your commerical policy ask what kind of vehicle you will be driving I attempted to get started running otr class a and couldn't get insurance coverage for a company entity because I was unable to tell them what I was driving for a 2 week period at a time they wanted a rig that was insured all year not 2 weeks at a time
Hands-down the rental is far better than purchasing your own truck the only drawback you got a move every 5 to 6 months if you own your own truck in three or four years you got a piece of junk or a high maintenance wore out truck enterprise long-term rental you get a new one every six months it’s a no-brainer get new technology new updates and gadgets everything better all the way around and a consistent payment you pay the same every month depending on your consistent miles if I didn’t live in Alaska I’d be down there running in my own enterprise rental
Man, thank you. You have a the shedded a lot of light on questions
Does your company take on sprinter vans I have a 3500 high roof looking to run only in Florida?
I was watching another video that mentioned Enterprise wants $3700 down. I don’t know more particulars then that, but worth a mention that you don’t just walk in and get a new truck.
Keep up the great videos! Thank You, Happy New Years
the EGR problems put me out of business it turned my dream of being a Owner Op into a nightmare
The big rigs are having the same issues with the DEF systems in them now...
@@swaghauler8334 my 2020 pete 579 is currently in the shop due to the def bullshit.....
makes financial sense if you’re building a company, I use to work for a mom and pop trucking company they had Penske leases they took care of everything including breakdowns ,maintenance etc etc , although it was a pain when trucks weren’t available
Thank you. I think rental is a good idea. To avoid problems
Great video TP! One thing I might add though... double down on payment, to pay the truck off in half the time of a traditional loan. Double the miles, you’ll want to trade it off in half the time. Avoid half of the major problems.
thank you for the complete break down of it all
Do you have to be in business for 2 years?
I’ve spoken with 2 different leasing companies and they want my MC / DOT to be 2 years active?
My authority is 4 months old and am having to buy old beaters because financing (I paid cash for my flatbed & box truck) and the maintenance is killin me!
Going outside the []
I was thinking finding a good used truck for a good price. Save up for another used truck so I have one always towing. Knowing how to fix them makes a big difference in this industry.
I got my van for free I've been towing with the last few years
So far new rear axle, and baring, fount bushings, gas pump, crack shaft sensor (rebuild of the tranmitter), 2 sets of tiers, coil, relay, second battery etc.
Doing wrench work on my own made me able to keep this E150 Ford going. Over 200,000mls Or I would have junked it. The last 4 days I worked 4 hours each day and made 320 cash. People are calling me. 🤗
Hauling junk to the dump.
Thanks for the info
Now I'm thinking of taking it to the next level.
Great information. You have a good format. Keep it moving!
You would need to put down 10k or so if you had good credit to get that loan payment. Five year loan is going to cost you $9,500 in interest on top of increase maintenance costs, plus you will depreciate that truck fast.
$0 down 0% interest...
1- does enterprise pay for tires on lease
2- what is tax benefits for lease vs finance ( is lease $ totally deductible as opposed to depreciation of finance)
3-if on enterprise program, will they step up if truck is lemon give u replacement
If you aren't allowed to modify the truck who installed the hitch or 5th wheel?
They come with it
what about financing for short term and then trade in and refinancing - again and again? this way you get the benefit of growing a good business credit profile and you get trucks that are covered by warranty - and also are lower mileage - before they are old you trade them in for refinancing and new warranty with good emissions. "buy" them gently used, and then trade them in after you drive @ 75k for a "new" gently used truck covered by warranty.
@15:08 WRONG! You CAN use your LLC to purchase the vehicle. Ask for a cooperate resolution form.
Oil change and filter is cheaper for ford. And if u buy extended warranty