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RV transport...how NOT to lose money?

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Old Mar 14, 2007 | 04:45 AM
  #61  
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From: Owensboro KY
Originally Posted by Ram1
OK, Here is my story.

I run for Horizon off and on for the past 4 years. The first year I ran VERY hard for 7 months. I was a good old A tac driver and that helps with getting more money on the mile from them. I brought home after all was said and done in 7 months a sum of $52,000 +/- a few dollars.
I took off for 6 months just to do what ever I wanted. That felt good. OK, money got a tad low in 2004 and I re-leased with Horizon and ran not as hard for about 8 months. I got the truck paid off doing that.

I started working a ChinaMart in 2006 for the hell of it and to be home with my fiance. I am so board with the working for someone else now and I am getting ready to re-lease with Horizon soon.

My comerical ins is $212.00 with Progressive
Ins with Brown and Brown through Horizon is $42.00
Truck: PAID OFF
Tires New. (Old set I got 112,000 miles on them.)
Brakes: I still have the original set on the truck and the dealer said I have a tad less than 50% pad left! THANK YOU PACBRAKE!!!

I eat cheap and dont sleep in motels.

Just use common sence and drive the speed limit and save your fuel. It is easy to run with the big rigs and that will burn your fuel up quick.

Most of all remember to have fun! you will see a ton of stuff good and bad.

Greg
That is VERY hard to believe . Just what did you show IRS for net income for that 7 months ? Also , fuel was a lot cheaper 4 years ago . The RV industry is reall slow . Fleetwood closed plants in TX , CA , and MD. They were all contracted to Bennett
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Old Mar 14, 2007 | 09:45 AM
  #62  
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whats a "a tac driver"
Clark
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Old Mar 14, 2007 | 09:52 AM
  #63  
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If I remember correctly a Tac driver is one of the top drivers. They pay you per mile and you are rated by classification. The higher your rank the better the pay per mile!
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Old Mar 14, 2007 | 10:59 AM
  #64  
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Whatever you do DONT lease on with Runn A mucc transport out of Oregon...you will never see any of your money. Like its been said before get your own authority...good dispatches keep there drivers and dont hire. My dad always said never work for a trucking company that has a Drivers Wanted sign on the back.... didnt believe him then but I know its true now.
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Old Mar 14, 2007 | 01:17 PM
  #65  
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Originally Posted by RickG
That is VERY hard to believe . Just what did you show IRS for net income for that 7 months ? Also , fuel was a lot cheaper 4 years ago . The RV industry is reall slow . Fleetwood closed plants in TX , CA , and MD. They were all contracted to Bennett

Yes, fuel was cheaper. I remember paying about $1.17 per gallon at Flying-J in GA. That day is long gone!
As for my taxes. I had a ton of write offs and a first cousin that is a very good CPA. Believe it or not..I don't care. I have stacks and stacks of file folders (trip folders as I call them) to show every penny spent and made on each trip since 2003.

Horizon did not contract with Fleetwood so that has no bearing with them.

The RV ind is slow(er) but it will never stop as long as folks can afford to go camping. The only time I seen a slow down is in the winter but it never stops. I always had runs to go on. I also stuck to runs on the east side of the Missippi river.

The Tac code it what they have in place for the core drivers. It goes from A to I drivers. If you drive like a devil you will be in the A tac. If you drive part time you be towards the I tac. The Tac codes are in place for the times that it slows down. When they put loads on the board for the drivers to see the A guys/gals can dispatch at anytime of the day. Then drivers with lower tacs can see the board at later and later times of the days. This gives the hard workers first shot at the good runs and the lower tac folks something to gripe about.

I liked how Horizon has internet dispatch. I can sit at home and look on the board and pick and choose where I want to go and not where they want me to go. I usualy pick a load around 4pm est. leave my house about 5pm get to Wakarusa, In. around 11pm hook up and back home around 6am. sleep for a few, get up and go deliver. I have lately(before leaving Horizon in 06) kept to S. KY and TN runs. I clear about $300 to $200 depending on fuel cost for the TN runs. I did that for about 3 times a week. a $600 to $900 dollar per week minus ins., maintance and taxes is far better than my $400 per 2 week pay check from WalMart!

So why did I quit driving? well, driving 344 miles up to Wakarusa Vs driving 1/2 mile to WalMart sounded pretty good to me. But, the money now sucks to work conditions suck also. I work in grocery receiving when I started there were 4 of us on my shift. Now it is just me! It is up to me to unload our 53' groc truck and down stack about 26 pallets of food. Which it took 4 of us to do in a 8 hr shift to do. And that is when the truck was running on time. Managment is looking for replacments but nobody wants to do 2nd shift grocery! I get more and more ticked everyday.

One of the managers (Mike) and I talked about Horizon and what I use to do. Now he bought a 07 3/4 ton Dodge and is now working for Horizon on his 3 days off. He just tarted two weeks ago he loves it and will be going full time here sometime in the year.

So working in RV transport is not as bad as many say it is. It is what you make it. If you run hard and don't have much of a family life you can make 80's to upper 90's per yr. I know it is true when my fiance(she was just a passanger) and I were on the road for the 7 months in 03 I made killer money. We were home 1 day out of 3 months on the road. We go a PO box in Wakarusa to get our bills. Now it would be attempted killer money with the fuel cost up from then.
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Old Mar 14, 2007 | 02:35 PM
  #66  
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Originally Posted by Ram1
I clear about $300 to $200 depending on fuel cost for the TN runs. I did that for about 3 times a week. a $600 to $900 dollar per week minus ins., maintance and taxes is far better than my $400 per 2 week pay check from WalMart!
$600-$900 per week before Insurance and maintenence! That doesn't even cover depreciation on a $30-$50k truck, more less pay yourself a salary.
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Old Mar 14, 2007 | 03:03 PM
  #67  
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From: Kentucky
Originally Posted by Luke S
$600-$900 per week before Insurance and maintenence! That doesn't even cover depreciation on a $30-$50k truck, more less pay yourself a salary.
I have had the truck paid off since last year. So everything from Ins to maint to fuel for the truck is about all I pay. Both Ins payments are right at $63 a week. Oil changes are $38 @ 7,000 miles. Food is about $10.00 if that a week for me. I eat cheap. I am not worried about depreciation on the truck so much now that it is paid for. I will keep her until all six wheels fall off.
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Old Mar 16, 2007 | 09:58 AM
  #68  
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From: Owensboro KY
I was going to say you couldn't legally earn that amount of money in 7 months . Then I realized that time was during peak FEMA hauling when FHWA made relief drivers exempt from HOS . Many of them ran 18-20 hours a day for days on end and made much more than could be made under normal circumstances . Funny how everybody avoids that reporatble income question . The thing is that's the figure banks use for lending money to self employed people . They want to see your tax returns from your last 2 years . O.K. so your truck is paid for . How about money to replace it ? Let's see . You run over 300 miles to get a 500 mile run then 100 or more miles home - over 900 miles . Say $1.10 a mile . $550 .You're actually only getting $.60 a mile .Figure 15 m.p.g average . 60 gallons@$2.50 a gallon $150 off $550 is $400 for how much time ? 6 hours to In , 9 hours to dealer , figure at least an hour hooking , unhooking . That's about $25 an hour for you and the truck BEFORE figuring insurance , depreciation , etc.
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Old Mar 16, 2007 | 10:05 AM
  #69  
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This is why I like running cars!! You can get a load in almost any city going anywhere and there is almost no empty runs.
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Old Mar 16, 2007 | 08:32 PM
  #70  
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Originally Posted by Luke S
$600-$900 per week before Insurance and maintenence! That doesn't even cover depreciation on a $30-$50k truck, more less pay yourself a salary.
Unless I've done my math wrong, depreciation on a $40k truck is $153 a week (using straight line depreciation). I'll grant that $600-$900 per week before insurance and maintenance make you wealthy but it should cover depreciation.
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Old Mar 19, 2007 | 08:24 PM
  #71  
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Good LUCK Diesel Duce...you're a gutsy lady for sure....
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Old Mar 20, 2007 | 10:07 PM
  #72  
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Unfortunately, you will not make any real amount of money...here's why...

Originally Posted by RickCJ
Aren't most of the RV haulers retired and do this for some extra $$? How can you make a living at $1.15 loaded and only paid 1 way?
Wow Rick, you hit that proverbial nail right on the head with your reply! :-) I did haul rv trailers for the entire year of 2002. Outfitted my truck similar to diesel duece and everything. As Rick said, most delivery drivers are retired(or at least not relying upon this income to survive). The common story I heard from these guys was all their lives Mom & Pop dreamed of retiring, selling the house, buying an RV and driving off into the sunset. Well, sort of...usually they retire, get the RV, drive around a little bit and discover it ain't for them. So if Mom wants to stay home after all, here's Dad sitting around watching Jerry Springer and the clock(tick...tick...tick...). And he has this nice new Dodge diesel pickup just sitting out there in the driveway, right? He's planning to trade it in every 4yrs, no matter what happens, and they are living off their Social Security and retirement IRA's, investments, stocks, whatever. Then he hears about 'You can travel the country and get paid to do it!!' Matthew Lesko-style, so he goes out and leases on. At this point, he isn't in this for profit, just something to occupy himself, since Mom doesn't want to travel. But that's cool, more power to him! :-) But the end result is, all the payscale is determined in this fashion(meaning they will do it for next to or even less than nothing...), and takes any profit margin completely out of the equation. What it all boils down to is the companies pay approximately exactly what the IRS allows for straight-out mileage deduction on your 1040 tax form. Example: In 2002, the mileage pay was $0.75 per mi. Taxable allowed deduction was, guess what, $0.37.5 per mi. Because as mentioned earlier in the thread, you are paid to go out one way, not paid to return(backhauls VERY few/far between). So how can a person do this AT ALL?? Unless they are already independently wealthy, they can't...BUT...I found out if you get really really good fuel mileage(I averaged 20mpg empty, 15mpg loaded usually), you will beat the allowed deduction with some spare change left in your pocket each settlement. IF, I mean IF, you have NO extra expenses(house payments, truck payments, kids in school, large credit card bills, extravagant lifestyle, etc). And if you watch your daily expenditures, and don't buy a motel every night, eat high on the hoggy etc, and here's the big one, NO major repair bills, you will make enough money to continue to do it. But that's it. Period. I'm not bitter about my experience, I'm not out to slam the delivery companies, I have no axe to grind. I'm just telling you that's what to expect going into this. Now that being said...I myself may be returning to this same company this summer to do this again. Why you ask? This time around I have no truck payments, I believe I have a better truck to do with, and I am completely free of debt, single, and don't even have to maintain a home(hey diesel duece, need a travel partner in crime??). That should just about make it affordable enough to continue. Now far as IRS/taxes, etc. It's all very very simple. As the IRS allows probably exactly the amount you are earning as a standard mileage deduction, you can literally zero out your income on mileage alone!! Meaning no taxes! But there's a catch....you can only show a business loss or no income for 3yrs, after that they will call it a hobby, and you will pay taxes anyways. My solution? Always show minimal profit, pay minimal taxes, do it long as you like! Drive around, see the sites, enjoy America the way it should be enjoyed - in a Dodge diesel!! Dang! Sorry about this terribly long message, I didn't mean to hog the whole page! :-) I just wanted to relate my experience(yours may differ) and tell a little of what really takes place. I wish someone would have been able to fill me in on it first. But as I say, I would still like to do it again, under my current situation - long as I can afford it!! :-) Everyone have a good one, I'm outta here!(finally...)
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Old Mar 21, 2007 | 12:14 PM
  #73  
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I have been out here hauling rv's for almost 4 years, and I HAVE made a living doing it. Am I getting rich, no. I can say my income is higher than our nations median income of approx 43k, I have had no problem supporting my family and paying my bills. It can be done, it can be profitable, and the best part is I don't have a boss looking over my shoulder.
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Old Mar 21, 2007 | 07:07 PM
  #74  
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Originally Posted by 92DuallyCTD
As the IRS allows probably exactly the amount you are earning as a standard mileage deduction, you can literally zero out your income on mileage alone!! Meaning no taxes!
One small problem with your theory is you have to use actual expenses when the vehicle is used for income, in other words you can't use the standard deduction. I know there are guys doing it, and have got away with it, but the instructions are very clear. The IRS uses a taxi as an example, but our pick-ups fall into the same catagory. There are still a lot of ligitimate deductions, my favorite is standard meals and incidentals. I've only showed a loss one out of the four returns that I've filed, so there is money to be made.
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Old Mar 22, 2007 | 03:12 PM
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Originally Posted by GAmes
One small problem with your theory is you have to use actual expenses when the vehicle is used for income, in other words you can't use the standard deduction. I know there are guys doing it, and have got away with it, but the instructions are very clear. The IRS uses a taxi as an example, but our pick-ups fall into the same catagory. There are still a lot of ligitimate deductions, my favorite is standard meals and incidentals. I've only showed a loss one out of the four returns that I've filed, so there is money to be made.
Ah yes, the incidentals that are so difficult to determine, especially when it comes to the IRS! :-) My experience the 3yrs total I ran and did the taxes for it, was having the entire tax return done by H&R Block. They simply utilized the standard mileage/vehicle depreciation allowance and that effectively zeroed any tax liability. In fact, the first year, they told me I was actually eligible for a $3,000 tax CREDIT, due to business start-up costs and being $2,000 in the hole after expenses the first year(we know there was that little bit of change left over weekly throughout the year though, don't we?). But I declined it, as said somewhere else...I didn't want to 'wake the snake'. ;-) I, as you did also, only showed the one year loss out of 3, so I am assuming by your statement there is money to be made, that you may be referring to this leftover amount from pay vs actual expenses? Not trying to argue with you at all, I simply point out the transport companies are not able to pay enough to make a true profit margin, once you factor in daily expenses, vehicle cost/depreciation/maintenance and the entire host of other costs associated with this job. They pay you right @ double the IRS allowed standard mileage deduction ONE WAY! That computes to the money to be made equalling exactly what IRS allows for the total miles being driven, but no more. Hence, my theory as you called it(but isn't a theory at all, because I lived it, earned it, paid it), is still viable, yes? On the other hand, please let us know exactly how much money there is to be made doing this, and by that I mean a dollar figure, ie your personal experience/pay/expenses. Remember, the last couple years income do not count if you hauled for FEMA as their payscale is NOT in tune with everyday regular rv delivery(such as the $1.05/mi average now), correct? Please remember I am not flaming, not picking a fight whatsoever, I simply ask for your proof of your statement 'there is money to be made' to clarify exactly how MUCH is that? Thanks for your time and comments. :-)
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