My company needs a work truck, but has not purchased one. However, I offered mine a while back as an interim thats still being run. The deal was free gas, oil and parts, but I now have around $2,000 in parts receipts i'm not reimbersed for. I am going to write a lease agreement for the use of my truck, and offer an option of me buying the parts, insurance, tags and doing the labor. I have averaged around 24,000 miles a year, and do almost everything myself. I want to charge enough that I can afford everything I need, save the cost of labor by doing it myself and use it for fum stuff like speakers and lights. I need high grade insurance for acces to the job sites, I expect it to rum around $130 a month. Gas will still be provided. I was thinking aroun $500 a month? Does anyone have a calculated cost of running a truck? Thanks!

 

Depending on where you live......IRS rate for deduction is $0.555 per mile. Just for tax deduction purposes, otherwise "leasing" will be treated as ordinary inclome....not a good deal for you.

And commercial insurance is in order, and is usually more expensive. Make sure it allows for "lease" and not just for your business. I assume you are an emplyee and not a 1099 contractor?

Don't know about the cost or a ball park on what you should charge.

 

you're being taken advantage of and going in the hole fast. stop being a dope.

as a lease or rental where money is changing hands, if you receive a 1099, the IRS will tag that as taxable income, so assuming you had to pay about 30% federal and state income taxes, you need to collect $130 for every $100 that you intend to keep.

second, your normal auto insurance probably disallows commercial or business use unless you have a business policy, or some type of rider to cover it. Expect to pay higher rates for this, and if you don't have it and they find out about the business, expect a denial to pay a claim.

Be wary of any agreement where they are supposed to pay for gas, repairs, insurance, etc unless you have a company credit card to use that cannot come back to you in any way. You don't want to be exposed to a business' shaky bill paying process where they refuse to pay, or pay late.

Having said all that, and assuming you put about 2000 miles per month, i'd charge at least $1000 per month, plus all gas! you should get your own business insurance with a million dollar liability and pay for it out of that. and plan for taxes, with the insurance and all repairs as business expenses. you might even be able to double dip the gas receipts as an expense, although if you do, don't tell anybody.

and remember - the owner of the truck is legally liable for damages in an accident, including damage to your own vehicle or other vehicles, including medical claims of other drivers, passengers, bystanders...

so stop being a nice guy and be aware of the expenses you are racking up. gas, oil, tires, brakes, transmission, front end parts, engine...

 

for 1000 per month, the business could buy a newer truck in a years time that they would not have to replace a tranny with.

Also, +1 on being taken advantage of.

 

I know, I know. They had been helpful for a while. I can't keep up this rate, though. I will calculate the legal expenses and I am getting a quote today for insurance. I plan on starting a small repair company that also leases my trucks. What I'm wondering is the cost of brakes, tires, transmissions, engines, etc. I estimate at my current rate, I will need a new engine and transmission every 8 years. I need an oil change every 6 weeks and a complete fluid change every year. I also plan on charging an additional $1.00 per 1,000 lbs per mile for accelerated wear. I am starting a small company so I have the legal right to seek money in case of non-payment, with me declaring my shop tools, shop and trucks as business assets. So my biggest question is this: What is the cost of running a truck? I will add my legal costs to the mechanical costs, factor in my labor and present it to the boss.

 

BTW, this business venture will be on the side, maintaining the other fleet machinery. How much do you fellow shadetree mechanics charge? I was thinking of $35 per hour because of my lack of specialized tools

 

Not to sound like negative nancy here, but if you don't have specialized tools how are you going to be able to maintain fleet machinery? Having to change a tire is a huge labor without a pneumatic or hydraulic machine and proper balancing is impossible. I'm just trying to gain some perspective here, no insult intended.

 

No insult taken, I know my limits. You see, I work for my Dad, who gets me to change his oil and fuel filter for my regular labor rate. This must stop. I can change unit bearings, I can fix brakes, I can even rebuild differentials and axles. So I want to get a fair share. That's the reason for this company. I want to charge enough that I can finalaly afford fun stuff like quick shift kits by working on this thing myself. How does $500 a month for parts and labor sound? Then I can add my legal costs and have my price...

 

Any labor that I contract ranges form $65 an hour up......depending on type of work. Don't sell yourself checp. And changing engines/tranny every 8 years? While I was Manager of Maint and Connstuction at UNM several years ago, I started repalcing older vehicle in my fleet. Some were costing as much as $1200 to maintain due to excessive wear. Consdiering cost of repairs no longer needed, the vehicle paid for themselves in about 18 months. No on had ever brough in over 20 vehicles in the same year...they could not do the math!

Morale of the story - while changing worn tranny or engine, you still have worn suspension, frame, steering, diff, etc. Plan on replacing rather than patching obsolesence...

 

my company pays 49 cents a mile to include fuel and repairs. I usually end up ahead.