Wednesday, January 13, 2010

Crunching The Numbers

This month marks one year that we've been in the new truck. At the end of each year, Ed does all of our expense calculations to see where we're at and how much, if anything, we'll be owing the IRS.

The savings we have realized with the new truck, when comparing 2008 to 2009, are quite impressive. The numbers below are comprised of some of our biggest out of pocket expenses; diesel fuel, repairs, hotels, parts, meals, truck payments (which we didn't have with the old truck), and groceries. See for yourself how beneficial it has been having a new truck with a large custom sleeper. Both are based on driving 150,000 miles per year.

OLD TRUCK: 1997 Freightliner with a 48" Condo Sleeper
TAX YEAR: 2008
TOTAL: $153,315.19

NEW TRUCK: 2007 Freightliner Coronado with ARI 132" Sleeper
TAX YEAR: 2009
TOTAL: $114,589.23


Almost $39,000!! SAVED. And that's with a truck payment!

But that's not our only savings. Ed determined that we probably saved over $100,000.00 because of the other benefits that come along with being a truck driver and owning a new truck. For example...

- We get a meal per diem from the government. If you don't use it toward meals, you get to keep it.
- The truck is under warranty, so any repair costs are covered.
- Truck payments are 100% deductible, which results in a substantial tax savings.

The other plus is that once we tire of this truck, it still has value. We can sell it and make enough to buy another like it. The value it loses is equal to what it has saved us, so in essence, we break even. We'd never be able to get that kind of return on the old truck.

In addition, we also own our own trailer, which means we don't have to share any money the trailer makes with anyone. You see, the way it works with the company we're leased to is that they get a small percentage of the revenue on the equipment; by owning the trailer outright, they get none of it. And the benefit of their contacts and connections for the freight far outweighs the small percentage they get from the truck. It's totally win-win.

The Neat Receipts program we use to track our expenses has been a godsend. We use it to track our every expense. Every receipt we get, we scan, whether it's for a pack of gum or a $200.00 PM (preventive maintenance).

I've never in my life been so aware of where my every dollar and cent goes. It really gives you complete control of knowing how you spend your money. Of course, crunching the numbers isn't as fun when Ed sees what we've spent at Dunkin' Donuts.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~
Looking Grand At The Grand Canyon
Overshadowing Government
Miami International
Did You Check The Solenoid?


Gil said...

Based on this buying the new truck was a no-brainer! Are any savings due to fewer miles run and more days at home?

Team Caffee said...

Hey Salina I was also curious to how many miles you drove in 08 compared to 09?

Those figures are pretty darn impressive and just goes to show how cooking in the truck pays in the long run!

Good Job you guys

The Daily Rant said...

Gil: Both are based on driving about 150,000 miles a year. And we spend about the same amount of time at home each year too.