The ELD mandate has really stirred up owner-operators. Fears are running wild, with nightmares of going bankrupt in an ELD world. The thinking is largely based in the fear of no longer being able to run over 3,500 miles per week. Less miles means less income, right? That’s something we should be afraid of.
Not so fast. Reduced mileage does translate to reduced income potential, but there are some important things to consider before purchasing an older truck.
Cost of Ownership for Older Truck
Older trucks have significant up-front costs and higher operating costs. Frequent repairs cause downtime, resulting in lost of revenue and much higher repair costs. Throw in poorer fuel economy, and the profitability potential just doesn’t add up.
Costs of ELD Compliance with Your Current Truck
The impact of ELD compliance may not be as bad as you may think. You’re operating costs are within reason, and you’re making a profit. ELD compliance means reduced miles, translating to less equipment wear, saving you money. Worst case scenario is that you will see reduced income potential, but still maintain profitability.
For What It’s Worth
The real discussion about the ELD mandate is more about a cultural shift in trucking. For years, many of us have used paper logs, doing whatever it took to get those extra miles. With ELD, that will no longer be possible. Purchasing an older truck to benefit from the ELD exemption, however, is a quick trip to bankruptcy instead of the bank.