how to work as owner operator in Australia #own #truck

Summary

The speaker shares his experience as a subcontractor in the trucking industry, emphasizing the challenges of buying a truck before securing work. He advises against rushing into truck ownership, recommending industry experience first. The video discusses the financial implications of truck repayments, insurance, tolls, and fuel costs, highlighting the importance of finding reliable work with a reputable company before committing to such a significant investment. The speaker's personal story serves as a cautionary tale, illustrating the potential for significant financial loss if not properly prepared.

Takeaways

• 🚚 The speaker started as a subcontractor in the trucking industry in 2017, buying a used MAN 540 truck for around 110k with a 20k deposit and monthly repayments of 2100.
• 💼 The speaker's initial research indicated that working in container work with crane trailers could yield a decent income, potentially earning over 4000 per week.
• 🔍 The speaker made the mistake of buying the truck before securing work, which led to a delay in finding suitable employment and financial strain.
• 💼 The first job found was not ideal, pulling someone else's side loader, earning only 65 dollars per hour after paying for the side loader, which was insufficient to cover expenses.
• 💸 The speaker ended up earning less than 3000 per month after major expenses, leading to the decision to sell the truck at a significant loss.
• 🚛 The speaker advises not to rush into buying a truck and becoming an owner-operator, emphasizing the importance of understanding the industry and its challenges.
• 🔧 The choice of truck is crucial, with some preferring American trucks for easier repairs and others valuing comfort and modern features.
• 💰 The cost of buying a truck post-pandemic is high, with repayments being a significant financial burden that needs careful consideration.
• 🏢 Finding work with a reputable company that provides minimum work hours and covers tolls is essential for success as an owner-operator.
• 💼 Major expenses for owner-operators include insurance, fuel, tolls, and truck repayments, which can significantly reduce net income.
• 🚫 The speaker warns against the misconception that becoming a subcontractor will drastically increase income, emphasizing the need for financial prudence and realistic expectations.

Q & A

What was the speaker's initial experience in the industry before buying a truck?

The speaker had three years of experience in the industry before deciding to buy a truck and become a subcontractor.

Why did the speaker choose a European truck for his business?

The speaker chose a European truck for local work and bought a five-year-old MAN 540 with over half a million kilometers on the clock because it was a decent option considering the income potential from the industry.

What was the financial arrangement for the truck purchase?

The truck was bought for 110k with a 20k deposit, and monthly repayments of 2100, which the speaker considered decent based on the income from the industry.

What was the expected income from the type of work the speaker was doing?

The expected income was around 75 dollars per hour, which could amount to over four grand a week, or 16,000 a month, based on a minimum of 50 hours a week.

Why did the speaker's business not work out as planned?

The speaker did not find work before buying the truck, and the job found afterwards paid less and provided fewer hours than expected, leading to income significantly less than the truck repayments and other expenses.

What was the speaker's loss when he decided to sell the truck?

The speaker lost his 20 percent deposit and an additional 12 Grand spent on a roadworthy certificate when he sold the truck at a loss.

What advice does the speaker give about rushing into becoming an owner-operator?

The speaker advises not to rush and to be in the industry for at least three to five years to understand it well before making the decision to become an owner-operator.

What are some factors to consider when purchasing a truck for business?

Factors include the type of truck (American or European), the age and condition of the truck, and the cost of repairs, with the aim to buy a decent, healthy, and roadworthy truck with low repayments.

Why is finding work with a reputable company important before buying a truck?

Finding work ensures a steady income and minimum work hours, which is crucial for managing expenses and repaying the truck loan without financial strain.

What are some of the major expenses an owner-operator should anticipate?

Major expenses include insurance, tolls (if not covered by the company), fuel, truck repayments, and potential repairs or services.

What is the speaker's perspective on the impact of buying a truck on one's life?

The speaker believes that buying a truck and becoming a subcontractor is not a life-changing milestone that drastically increases income, but rather a step that requires careful financial management and patience.