Hotshot Trucking

Does anyone have knowledge or experience on this? I am in Utah. I have a 20k to 30k budget for a truck. Would diesel be the only option or is heavy duty gas fine? How do I get consistent work? Has anybody just used a business loan for all these expenses? Thanks

Jake I have never done the hot shot thing but I have been around some and will tell you what they say. These guys a group of 3 are working pulling ISO chemical containers empty. They move them from customer to tank wash and back to a shipper. They are using Ford F450’s with long goose neck trailers. They started during the good times in 2018. One guy spent all he had to buy the equipment. The other 2 took out loans to buy the equipment. The only one still around I see is the first guy. He told me when the rates went down and in aug 2019 chemicals started slowing down his buddies lost their equip because they got behind in payments. He said he still makes it, but lost alot of revenue.

I don’t know what kind of lifestyle those guys lead, or what business experience they had. I know hot shot is like any other freight. Supply and demand. This can go into a very lengthy conversation of various aspects, but bottom line is what type of freight is in your area? Is that freight steady or a flash at the time. It is different in different parts of the country.

I will say this. If you have little to no business experience and little to no money in hand to invest your fighting a loosing battle before you start.

To the point of equip. You have to know what the usage of the equipment is going to be for before you can speck out equipment. That is no different from business to business. Right equipment for the right job.

Is the 20-30k budget money in hand or is that credit?? I think you will find that is short of what you will need, but again without knowing what steady type freight is in your area you don’t know what equip you need, so you can’t figure the cost.

Commercial insurance is really volitle right now and depending on circumstance can get pricey.

You have a tremendous amount of homework to do before knowing how much money you need.

I’m not trying to throw cold water on you, just get you thinking about the big picture on your topic.

If you take PJ's hint, which I agree with, hot shot is no picnic. You have a huge capital-to-revenue ratio. As a self employed business you have business expenses a regular employee doesn't deal with: business insurance against liability as well as capital loss, health insurance, self employment tax, repairs and tires, and in trucking, probably your own Authority to operate, or at least to pay (it might be a deduction in your revenue) to use someone else's.

Your $20-30 large might be better spent as the down payment on a Freightliner. But again, we don't cover Owner Ops here, either.

If you want to see all 48 States, we recommend being a company driver with a major trucking company. No business expenses. Heath insurance (a big PITA for anyone in the US). Maintenance and repair are a simple phone call away, nothing out of your pocket. No need to rustle up your own business (revenue) or pay a load board. Ahhh ... the trucker life.

As for gas or diesel power, consider all those 18 wheelers burn diesel. More power to the drive wheels: Real Trucks Don't Need Spark Plugs.

I’ve also heard you need to budget for a new transmission annually.

Hello Jake, and welcome aboard! Just for some perspective on my remarks I want you to know that I'm a long time business owner. We see guys coming in here often with questions like yours. I always think whatever you're doing to get where you have thirty thousand dollars to spend, then you should just keep at that. It will take you forever to recoup that investment if you manage to do it at all. Look closely at what PJ said...

One guy spent all he had to buy the equipment. The other 2 took out loans to buy the equipment. The only one still around I see is the first guy. He told me when the rates went down and in aug 2019 chemicals started slowing down his buddies lost their equip because they got behind in payments. He said he still makes it, but lost alot of revenue.

Here's what it tells me: The first guy has lost all the cash he had saved, his revenues have been reduced, and he's still barely hanging on. If that sounds like a good plan, I'm sure I can't sway your thinking. If the goal is just to be in business for yourself no matter what it costs, then go for it. If you want to earn a good solid living just get your CDL and be a great company driver.

Take a look at what some of those guys made this past year...

Yearly pay numbers for 2019

Jake, you posted before that you had a couple of tickets on your record. Insurance will be higher for you. The profit margins with the hotshot market are even slimmer than with actual trucking companies. One of the major reasons is because anyone with a dualy can be a hotshot. Most don't even require a CDL. Pickups wear out at 250, 000 miles if you're lucky. Class 7 and 8 tractors will do 1.5 million easily for much less. Have you looked at quality used and new dually pickup truck prices? I can buy a sleeper cab tractor for less than $40,000, then drive it for 10 years. How many pickups will a hotshot go through in the same timeframe?

Company OTR driving is where it's at. That fact is irrefutable.

Thanks you guys are very helpful. RV transport is another thing I was looking at. But that is probably a lot worse than hotshot would even be. I am also interested in new truck transport but I need more info on it and it needs to be consistent. Packrat made very good points about getting a used tractor for around 40k and it will last longer. Finally there is local stuff I am interested in. Maybe driving a dump truck or something. I applied for a job operating a passenger train where it said having a cdl is helpful. Thanks guys you're awesome.

RV transport is another thing I was looking at.

Might want to look again. There is simply way too much competition out there to make RV transport a viable option.

One of my wife's family members tried it. Bought a brand new Chevy dually and hit the road toting RVs all over the country. 3 years later the truck is broken down, has 450k miles on it with practically no resale value, and still costs him $700 a month. He finally gave up and now drives a rig for Logistics One to get himself out of debt.

One of Jake's interests:

I am also interested in new truck transport but I need more info on it and it needs to be consistent.

Been there, done that. Check this topic out: I'll Be Driving Your Brand-new Truck Before You Do!

I often had to un-deck three trucks on delivery. That operation takes most of one day. Outside. In December and January I had to deliver to Fargo, ND, Wausau, WI, and Boise, ID. Did I mention that you do your work outside?

You are mostly an independent contractor, though they arrange for things to be covered in "benefits" that you pay for. You'll always have a delivery (read "load"). You find hotels that can handle truck parking, and you'll build up hotel stay points. You mostly fly back to the factory (fly points). I started trips in Laredo, TX (International trucks), Dublin, VA (Volvo), and Macungie, PA (Mack).

You need to carry all the tools, and your own stuff, limited to 50 lbs a bag then you pay the airline $70 to check both bags. They pay you enough but you buy the fuel, but not all the trucks you drive are OTR , you might get frames for city trash trucks which have lower MPG. And you need to shell out for tolls and state entry permits.

Please note: after about six months, I came back to OTR trucking.