Loan using trailer as collateral?

I’ve needed to repower a load twice over the years. First time in early 08, I blew my engine in Knoxville. Rented a Truck, delivered the load to the Gulf Coast. It was a day late. Dragged another load back, just trying to cover the cost of the rental at that point, not expecting to profit. I rented it from Penske. It wasn’t too expensive, flat rate, and a per mile charge. It worked out well. Rented a car home for a couple weeks while the engine got an overhaul. Penske stopped renting to single O/O’s soon afterwards. Too many in dire straights I imagine. Not sure what their policy is now. Second time was 8 mos. later. Wrecked the Truck in NJ. Had a cheap load of paper out of NY going to Va. I paid a Local Carrier to deliver the load. Agreed to let him load my Trailer back. It cost me $200 more than it paid me. The Carrier was a good guy, had 13 Trucks. He made good money with Local accounts, didn’t really need my Business. He was fair and didn’t take advantage of the situation. It worked out good for everyone. He even drove Me to the airport to get my rental car. Nowadays if I found myself in that situation, probably wouldn’t be able to rent a Truck as a single O/O. It’s best to have an account set up already with a rental company if possible. That way you’re covered if needed. I was already set up with Penske, from a previous Trailer rental that I ended up cancelling. Usually if a Carrier can’t deliver the Load, if it’s a Brokered Load, the Broker will repost it as a Power only Load. You need a Trailer interchange agreement, set up through your Insurance company and the new Carriers insurance. No big deal. Today if I found myself in a jam, I’d hire one of three O/O’s I know to cover the Load. I’d probably have them set up with the Broker. Depending on the Brokers wishes. They’d do it if possible. We’d figure out a fair compensation. We help each other out quite a bit on repairs, and have discussed such hypothetical scenarios. I’ve loaned my Trailer when it was needed for a day. We share tools, etc. Anyway it happens all the time. One way or another the Broker has to figure out a way to repower the Load. Hopefully you have a helpful solution. Just have to work together, no other choice.

 

Going to try getting approved by a rental company before I end up broke down. Probably give Hogan a call first since I’ve driven one of their trucks before.

 

Let Us know. I also had towing coverage through Ooida insurance at the time. $500 deductible. Used it twice in one year. Williamsburg Ky-Knoxville 68 miles, cost $500. My current Northland Ins. doesn’t offer it. I’m told Great west does. Well worth it, last thing anyone needs is a huge towing bill on top of a disaster.

 

It has become a hassle to rent a truck. Pensky is almost not an option for a solo o/o. At least in my experience. Either them or Ryder required the business address to be separate from home. I would do all I could to finish the job but the next time it happens I may need to repower it with another carrier or let the broker arrange for it. Less hassle and quicker this way. That's a huge disadvantage of running independent, you are on your own finding solutions and they are always costly.

 

Single O/O here. I am set up with Ryder.

 

Can you get a home loan off that home? Might be an easy set up and can pay it back within a year so not a big deal.

 

There's a whole lotta truth in what OscarGoldman is saying throughout this thread.

Dark ugly gut-wrenching truth.

Being in debt on a tractor with a blown motor is pretty much a financial death sentence.

If selling the trailer would cover the cost of [competent] repairs to the motor [using quality parts, not made-in-China parts], then you've gotta sell the trailer.

And whoever owns the goods inside the trailer will simply have to send someone else to come pick up the goods.

If that you gets blacklisted with the broker who booked you the gig, then to heck with the broker.

It's the broker's responsibility now; let him deal with it.

You need to get that trailer emptied and get that trailer sold.

!!! DO NOT GO INTO FURTHER DEBT !!!

!!! DEBT WILL RUIN YOU !!!!

PS: Pocketing the proceeds of the sale of the trailer puts you in a race against time: Can you book enough gigs to finish paying off the loan on the tractor before you have another catastrophic engine failure?

If it's a 50-50 proposition as to whether you can beat the clock on paying off that tractor loan before the next major catastrophe, then you might think about selling the trailer for cash, and simply disappearing for a while [keeping your Class A license clean & up-to-date while taking on oddball jobs here & there until you have accumulated enough of a financial war chest to show your face in public again].

PPS: I don't know anything about your personal life, and especially whether there might be a wife & kids involved, but if there are a wife & kids involved, then the cash you took for the trailer needs to be hidden in your garage or some dadgum where that it's available for family emergencies.

Meaning neither the IRS nor your creditors need to know about the existence of that little pile of cash.

Worst case scenario [say, you owe 100K+ on that PACCAR], then you might have to enter into a strategic divorce simply to protect the financial standing of your wife & your children [you'd be legally divorced at the courthouse, and you'd give them all of the cash from the proceeds of selling the trailer, and you'd be assuming all of the debt at the bankruptcy, so as to keep your wife and kids debt free].

 

Blown motor?
Divorce over $13k?

LOL!

 

It is the internet so we have to blow it all up to the end of the world. ha ha