Experiences with Schneider Finance

My question is why not buy an new truck? In all my research before I became an IC. The experienced Owner operators seem to almost always say ...(ok well 8 out 10 maybe) and I quote "BE SURE TO GET A NEW TRUCK" If your just starting out with little money to invest that is best way to go (just my opinion and what my research told me). Most of us don't have the money lying around required to maintain an used truck. Plus If the truck is in the shop your loosing twice! cost of repairs and you can't work! just saying

 

The new trucks are in the shop alot more often than the used ones due to all the EGR,DPF and DEF related issues. If you end up with a sick truck the down time alone could put you out of business. The big problem is the dealers dont know how to do anything but throw parts at the problem.

Many of these issues go unsolved and you could end up with a truck that struggles to average above 5.0-6.0 MPG. Even with a warranty your losing a ton of money because of down time,combine that with the below average MPG and even in a better paying operation like Landstar your going to really struggle if you manage to survive at all.

A good low to medium priced used truck that has been properly checked out is a far better bet for a first time O/O. By properly checked I mean a lifetime ECM report,service records and a dyno and full bumper to mudflap inspection by a competent third party. If the seller hesitates on anything I mentioned then move on to the next truck on your list.

From day one until you have enough saved to cover an in frame you should be putting back .10 CPM for maintenance. Many do more which is great but I highly advise against anything less.

 

Would SNI finance a glider kit truck? It would solve the problem that dieselfuelonly is talking about it would be a new truck with a non-emissions engine, it would have a warranty, and would better fuel mileage then the new DEF trucks. I havent seen any gliders with a Cummins in it like he is looking for but I have seen both CAT and Series 60 engines in them. Also he could spec it out better then what SNI specs their trucks with I dont think I would ever put 2.64 rears and a ten speed into a truck that has to climb any hill, and the gliders are cheaper then the new trucks, I looked at the SNI website at he 2014 freightliners and they were going for 147k and the gliders are going for 125-130k.

 

NO, they will not order you a glider and they will not finance a outside purchase.

 

Hmm not so sure this is true anymore. Now that the new trucks with all the emissions EGR, DPF and DEF have been out for awhile the mechanics have learned how to fix them and they have been making them better with less problems than when they first came out. I still would go with a new truck with warranty.

 

You could not be more wrong about the problems with the new trucks,you just like the warm and fuzzy feeling a warranty gives you. If you end up with a sick truck thats down alot whos going to make your payment?

 

That may seem perfectly reasonable on the surface but the Devil is in the details. A new truck depreciates so fast that usually the principal bring paid on the loan does not keep up with it. You are usually upside down when you drive it off the lot and remain that way until about the third or fourth year.

If you don't have the cash to keep up with a used truck you likely can't afford a big enough principal or down payment on a new one.

Depreciation is a huge cost that people overlook far too often and interest is paid on that depreciation...

Cash flow wise, a new truck may or may not work out better but you'll pay for it either way.

 

To be really honest,if you dont have enough cash to cover the expenses on a good used truck you really should be rethinking your business plan.

 

Uhmm pretty simple. Just talk to SFI say you sold me a sick truck get me out of here and on to something better! They work with you. No Im not wrong though. It is not likely your going to end up with a bad truck. Yes it can happen but if it is a new truck they will be more willing to work with you than a used older truck in my opinion.

Unfortunately like many others you are just stuck on the old thoughts and beliefs getting a used truck is the conservative smart way to go. But in reality it isn't. IF and I repeat IF you don't have cash to buy a used truck or put a significant amount down on it. Then buying a new truck to get you started making more money is a better option. Again everyone has to take risk and obviously decide for themselves I am just saying be open to the possibilities to get you started making a better living. Then down the road you can save and buy a used truck or just pay off the one you have.

 

Oh, by the way! Dammn Right I like the feeling of having a warranty! Absolutely True! makes me feel a lot more at ease especially with a job like this I want those warm fuzzy feelings and good state of mine to keep me doing my job as safe and effective as possible!