Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: https://read.dmtmag.com/i/119523
Wormley paid cash – $15,000 – for a used van and expects to see a full return on her investment in less than three years. Though she is not running a lot of miles compared to the average owner-operator, Wormley has a dedicated route hauling windows between Iowa and Montana. She averages 45,000 to 50,000 pounds per haul, which helps her fuel mileage. "This is another plus of having your own trailer," Wormley says. "It allows you more freedom to find the right loads and select the places you want to go to make the most money." Amen says a good rule of thumb for an owner-operator is to earn 1.5 times the investment. If the trailer costs $600 a month to finance, it should generate at least $900 a month in extra revenue "or it's not worth the risk." Text INFO to 205-289-3555 or visit www.ovdinfo.com Hoffco_OVD0312_PG036.indd 1 Specialty applications – such as pneumatic trailers for fracking operations, oil field tankers, car haulers and heavy-haul trailers – are often a no-brainer for purchasing a trailer. "You can often bring capacity and special services to a market that will pay extra for it," Amen says. One drawback to buying a specialty trailer, he warns, is that "as that freight diminishes seasonally or economically, you are tied to that industry segment due to your specialized equipment." In general freight, also be cautious if a big part of your business relies on dropand-hook operations. "The biggest pitfall is owning a trailer that hinders your productivity in a high-volume drop-andhook segment of the industry – dry van and reefer," Amen says. "You may have to wait hours to get your trailer unloaded, whereas if you were operating in a Trailer ownership Pros • Increased revenue • Confidence in condition of equipment • Depreciation savings in first three years of ownership • Opportunity to customize operation to fit your needs Cons • Increased maintenance costs • Increased administrative costs (insurance, plates, etc.) • More responsibility for staying with load • Possible reduction in total load miles due to less drop-and-hook 2/27/13 9:30 AM April 2013 | Overdrive | 39 Buy_a_trailer.indd 39 4/1/13 9:20 PM