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If you have your mind set on becoming an owner operator, you need to factor in all the costs to have the best chance at success. This can be a lucrative venture, but it has its own set of challenges. One of the most important aspects to consider when you purchase your own truck is the true cost of ownership. This is what makes or breaks people in the transportation industry, especially if you don't have savings built up prior to starting (or don't put aside money for the truck every time you're paid).

Company drivers don't need to worry about fuel, maintenance, and repairs. You do. Understanding the financial responsibilities that come with owning and maintaining a truck, and budgeting responsibly, is necessary.

First, Account for Fuel Costs

If you're not tracking how much you're paying for fuel, there's no better time to start. You'll need this number to have a real understanding of what you make in hand at the end of the year, and it can be beneficial for tax purposes. Knowing how many miles you can go before needing to refuel will also give you advanced insight when your truck needs attention. Should it become less efficient, you can have it checked and see what's causing it.

Second, You Need to Repair the Truck Eventually

It's not a secret that one of the biggest costs associated with owning a truck is maintenance and repair. Even if your truck is running great now, it will need repairs at some point in the future. Hit a bad stride where one thing goes after the other and you'll be grateful you put money away for it (or you might find yourself eyeing other career options if you didn't).

Again, the best way to prepare for these expenses is to budget for maintenance and repair costs from the beginning, and better yet, build up a significant amount of savings for service before you purchase the truck. You should also set money aside each time you get paid. That money is the truck's money, and it's this foresight that will save you from financial hardship down the road.

Everything Adds Up at the End & You Can Take Advantage of That, Too

You have fuel, repairs, maintenance, and other considerations like loan repayment (assuming you didn't purchase the truck outright), health insurance, cargo insurance, retirement, and so forth. You might gross 150k, but after factoring in repairs and fuel, end up with $70k. If you have an additional deductions, you can end up with a lower taxable income. This is why it's important to keep receipts and know what you can deduct. There are tax benefits that come with working for yourself that company drivers don't have, and being good at recordkeeping can add up in your favor here.

To recap, it's a good idea to:

• Put money aside each time you're paid for business expenses like fuel, repairs, taxes, and so forth
• Track your expenses so you can deduct them when it's time
• Understand what deductions you're allowed to take (talk with a tax professional)

By budgeting for maintenance, repairs, and other costs from the start, as well as keeping track of business expenses, you can give yourself the best chance at success as an Owner Op.

I Need a Truck Repair Shop in SLC

When you need commercial truck service in Salt Lake City, stop by Commercial Trucks Sales and Service (CTSS). We are a full-service truck repair and maintenance center serving SLC and surrounding areas, with specialization in medium and heavy-duty diesel truck repair. We've seen a lot over the years and have the knowledge and experience to perform repairs for tractor trailers and more in a timely manner.

If you're operating in the Salt Lake City, Utah area, stop by CTSS and allow us to assist you!