Financial Advice for those wanting to be an O/O

If it's only about the money, imho, a two to three year old used car is the best purchase, in general, because of where it sits on the depreciation curve.

If cars are your thing and it's more than just a tool, don't buy something that will handicap you financially but also enjoy your life and don't be afraid to buy new.

 

I see it differently. Whether or not I pay cash depends on the interest rate of the financing offered and it's relation to the risk free rate available at the time of purchase. The risk free rate is the interest rate offered by government bonds. So for example, if the financing offer is zero percent apr then I finance and put the money for the purchase in a mix of government bonds or investments with a similar risk profile to bonds.

 

A used car is understandable because its deprecating asset and liability because it doesn't generate money. Now when it comes to a Semi truck IMHO its best to buy a new one. Yes, new ones have problems and issues however with a warranty coverage and saved receipts with a good accountant it can be written off. Less problems & headaches.

 

You and Dave Ramsey are full of stupid poop.
And it's amazing the kind of crap you believe.

No, bud. Millionaires don't buy 2-3 year old used cars. They buy the new ones that have the best ratings and are sufficient to the need.
Geeze.....

 

To each their own. I believe financing has its place. Otherwise you can limit growth. Let’s say your getting into a business that requires 400k start up costs. You can save the money, go into business, and loose it all cause you don’t have any reserves. Happens in trucking every day. Now what if you kept, said money into the account and financed the cost of start up? Doors open up. That’s what I do. I finance almost everything. It gets a nice down payment to ensure equity is maintained and boom. I have security and cash flow. My credit is great which opens the door to very low interest rates and insurance goes down too. But it takes discipline, just bought a new car, it’s been 14 years since I last bought one and the only reason I did was I live in Michigan and I needed to replace what the rust took away.

 

Soooo work hard,play hard,spend it like a retard is not a recommended life style?

 

I respectfully disagree because the used truck still has a depreciation curve where you can buy a two to three year old used, with mechanical due diligence before purchase, and still have warranty at the time of purchase. Also the federal excise tax is non-starter in my opinion for a single driver owner op mc, unless of course the seller eats that cost which I haven't heard much of.

 

I think I tend to fall more into this camp as well because of the lost opportunity cost of not using leverage and financing responsibly. My time is valuable. As long I can accurately predict a comfortable margin of free cash flow over sustainable periods of investment I'm good. The path of moving from commercial credit to open lines of credit with very very good fixed rates of interest is the goal.