Experienced O/O. Apart from Repair Cost, what should I expect to pay to start a company and start driving Intrastate with a daycab?

Posted by Moist_Position_9462@reddit | Truckers | View on Reddit | 12 comments

So I was playing with the idea of getting a daycab and driving for Amazon. I just want to know what I should be expecting to pay and if at all possible maybe a ballpark figure for Florida. I know I would have to start a company and basically fund it from my own pocket for a few months because Amazon doesn’t normally let you drive for them until the company has been “in business” for at least 6 months last I heard.

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12 Comments

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Crash2311@reddit

If you’re talking O/O no authority to O/O getting your own authority. You will have high insurance for the first 3 years typically (higher risk). Typically 2-3 times higher than established. You will have cost of authority (cheap). $300 if I recall. You will need to establish your IRP/IFTA accounts as well as any other odd states that require their own IFTA approval/permissions. (KY, NM, NY, OR) or not run in those states. You will need to register with a drug/alcohol consortium. You also need to keep in mind you will have to be an active authority for 30 days before you can actually haul freight. There is a 30 day wait period from the time you start your authority and have active insurance to become actually active.

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Moist_Position_9462@reddit (OP)

I would assume that I would need to have Authority if I wanted to be able to get loads directly from Amazon and choose when exactly I would want to haul freight?

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Financial-Prize9691@reddit

My insurance out of Florida is $26000 a year Bobtail, liability, and cargo. 20% down and 2100 a month for 10 months.13 years driving one $5k claim 3 years ago authority is 4 years old. Yes you need an authority.

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Moist_Position_9462@reddit (OP)

Damn… 26k sounds steep. But what do you mean by bobtail? Would that basically be the equivalent of comprehensive and Collision for a car?

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Financial-Prize9691@reddit

Florida is one of the most expensive states to get insurance in. Bobtail is regular auto insurance for your tractor.

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Moist_Position_9462@reddit (OP)

Oh alright. Any advice on what I should look for or do when I decide to buy my semi? ChatGPT was saying 50k-70k for a used truck was average. I know I was looking around a while back a saw some for like 25k-30k online but they were all the way in Michigan.

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Financial-Prize9691@reddit

I just purchased my 4th used truck and every single one of them has had mechanical issues the first year. My average has been about 25k in repairs the first year. I don't know if I'm a good source on recommendations for buying a truck. I've even had a mechanic with me and still got stuck with a shop Queen. Maybe someone else out here has some good advice.

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Moist_Position_9462@reddit (OP)

Yeah I am just wanted some insight.

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Financial-Prize9691@reddit

40k after all your down payments, even then you are left with your balls swinging in the wind. I know some guys that have made it on a wing and a prayer, but 50% of new trucking companies fail in the first 18 months and 80% fail in the first 5 years. They fail mainly because of underestimating operating expenses. You have to remember you have to pay your bills even when the truck's not moving. Let's say that I'm down for a 15k repair. That's at least 2 weeks down. That's another 12k lost revenue and the expenses don't stop. I just blew a transmission on my oldest truck and it's not worth dropping a new one in it. I bought another used truck that I have already put in the shop. I am still waiting to haul because I bought the truck out of state and Florida makes you jump through hoops to get it registered, 4 weeks down. That's at least 24k in lost revenue, 7k for the down payment, 3k for shop work and 1.5 k for the tow. I only keep 40k cash on hand in the business account and I have almost burned through it. After I start hauling again, I'll have to work on building the reserve back up.

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Moist_Position_9462@reddit (OP)

So I asked ChatGPT and it gave me Ranges of 8-15K yearly for Liability and 1-3K for Cargo. Does that sound accurate?

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Crash2311@reddit

Start up in FL I don’t know. But I highly doubt it. I know most guys, many states (just not FL) including mine. Startup insurance was $18k-$24k per year. Not including trailer exchange coverage. (Which is Cheap)

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Crash2311@reddit

There is other small things. BOC and UCR