Looking to finance a truck, bad credit but I have collateral

Discussion in 'Trucker Taxes and Truck Financing' started by JD Transport, Apr 26, 2015.

  1. JD Transport

    JD Transport Light Load Member

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    I found a few trucks and I'm really wanting to go buy one this week but I know my credit is going to be a problem. I'm already with a company and can lease on with them. Should I go with a semi financing company or try my local credit union? My credit is bad but I do own things and figured I can use collateral such as my personal vehicle and I own land. Is there any companies that are recommended?
     
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  3. Pinqui

    Pinqui Light Load Member

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    I would not leverage your land and vehicle. Plus, I don't think many credit unions would entertain them as collateral. Instead work toward repairing your credit and save up a cash down payment.
     
  4. JD Transport

    JD Transport Light Load Member

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    good thing is that I have 2 vehicles paid off and I'm in good standing with my credit union. Wish I didnt have to try and resort to this but it is that way. Wish I could just repair my credit and save up, Owner/Op is the only way i'm gonna be able to get ahead and leveraging the land is gonna be my first attempt to getting this done. Only looking at a $15k truck, not gonna break the bank with that price.
     
  5. misterG

    misterG Road Train Member

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    That price might not break the bank but the maintenance might. There is a reason its only 15k.

    You might still be better off to remain company, and save for a cash payment. I would also suggest going in to your credit union and talk to them about your situation. They might be able to help you put together a plan to stabilize your future and present situations.
     
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  6. JohnBoy

    JohnBoy Road Train Member

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    Is your land paid for? Deed in hand? If so, you could try for a line of credit on the property with your credit union. I did the same thing 10 years ago, but instead of buying a used truck I bought 4 rental properties that I still own and collect money every month off of.
     
  7. spyder7723

    spyder7723 Road Train Member

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    A lot of guys take out a second mortgage on the house to buy their first truck. Nearly all I'd them ends up with no truck and no house. If a person is ready to be a business owner, they have the capital in hand from years of sacrifice and savings. They end up doing ok in this business.

    Those looking for the quick and easy way end up in bankruptcy court. There is a reason for this.
     
  8. JohnBoy

    JohnBoy Road Train Member

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    That's why I went in a complete opposite direction. Being a landlord far out weighs owning a used truck.
     
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  9. bigNATURE

    bigNATURE Medium Load Member

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    sounds interesting!
     
  10. Pinqui

    Pinqui Light Load Member

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    How do you do that? Do you have people hired who manage your properties? I am my sister are curious about rental properties.
     
  11. JohnBoy

    JohnBoy Road Train Member

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    Thinking and acting outside of the box. But in all honesty, my wife and I had a big house built about 2 years before the housing crash, we had a boatload of equity in our home and after the dust settled bought two duplexes next to each other at auction on a line of credit we took out based on the value of our home. My wife is a realtor and a certified property manager. All 4 of my rental properties are paid for and are in the Palm Beach County low income housing program. Our properties have been empty a total of 6 times in 10 years. Our client base comes from the county as does our monthly rent. If you aren't as fortunate, at minimum you can net $500 per month after all is said and done. It can be done, we took a calculated risk and it has paid off. Next step? Selling all these rental properties the same year I retire, which is looking like in 5 years.
     
    Last edited: Apr 26, 2015
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