buying a truck. bad or good idea? please read

I hear Schneider has a very good school. Put your money in the bank. Drive a year or two and see if you like it.

 

Don't buy the truck outright. Keep that money invested with the possible exception of a down payment on the truck that you want.

Sorry Pfuse - bad bad bad - why waste the money on interest charges when it is not necessary. You are right, invest the money so that it is working for you, but financing the truck with interest defeats the purpose of investing your money to earn interest.

You don't need the fanciest newest truck on the road. When you are ready, pick an older cheaper truck and pay cash for it. Trucks are not all the same, you need to know what you'll be hauling, or what you want to haul, before you purchase your truck. Do your homework, what engine you need, transmission gears, differential gearing, tire size, etc.

Know what your operating costs are going to be, make sure you have enough for any repairs that you will need, living expenses, fuel etc. Keep enough money in the bank to cover yourself unemployed for at least 2 months while operating the truck. Leave the rest of your finances invested.

And never give up on your dreams - to do so is giving up on yourself.

 

Buying MY truck is a great idea... you'll be rich in 30 days.... I'm making so much $$$ I am forced to sell for tax reasons.

Call me.

 

It's hard to imagine that the money invested in a truck could make a higher return than the interest on having financed the truck.
If you are a solid self-starter, maybe you could find a specialty (bulk, cars, or whatever), and a reliable experienced driver to run with you once you've secured your CDL until you have some experience under your belt (in other words, long enough to realize that you'll never know *everything*).

That's just one way you could do it. As you're better funded than many of the rest of us, that do open up da options. Just be careful not to squander it.

 

No matter what truck you purchase,by finance or outright, it is going to depreciate. Financed trucks depreciate at the same rate as purchased trucks. Of course the single largest depreciation takes place with new trucks. While purchasing the truck outright requires more upfront, you don't take the depreciation along with the interest. You'll yield the return when you trade it in or sell it depending on how you care for it. Also, most contracts require you to fulfill them and charge extra fee's for early outs, on top of the interest you have already paid, on top of the depreciation the truck takes. By purchasing an older truck outright, you stand a higher chance of getting back more of your investment, especially if you decide this is not for you. You sell the truck for what you can and be on your way, without the extra hassle of terminating the contract or early buy outs. You will also be in a far greater position while on the road since you have the added security your truck won't be repo'd. Take that extra time with your family, take that extra time waiting for a better load, you won't be scrounging for every little bit you can get trying to make your next payment. That's the trap most lease operators fall into. This is why so many loads are bottomed out or upside down, in my opinion. People come into this industry expecting to get rich, they take the lease option without doing their homework, and fall victim to bottom feeder loads that affect the rest of the industry. It's better for drivers to remain with companies until they are properly equipped (and that does include financed), educated, and disciplined enough to become owner operators. My $0.02

 

you forgot to mention the depreciation tax deduction

 

My $.02: do not buy a truck. Take that money and do the following:

If you don't have one already, open an IRA with Vanguard (Roth or traditional, that's up to you). Max out the 5k contribution. With the remaining 370k, open a taxable account at Vanguard. Put 70% in the following: Total Stock Market Index. Get Admiral shares. Put 30% in Vanguard Total International Stock Market Index. Also Admiral shares.

If you decide to go to trucking school, become a company driver for at least five years, until you know the trade. Then, and only then, should you consider purchasing a truck. And even then, you probably shouldn't do it. Under no circumstances let anyone know of your windfall.

Good luck!

 

5yrs? talk about abusing yourself first..lol

 

you're probably right, but then he'll see the folly of buying his own truck. At least that's the sense I get from the great majority of posters here.

 

I drove for ten years before I bought my first truck. Be a company driver for awhile, learn the business, talk to owner operators (most of them wont know how much they're making), but talk to as many as possible until you find someone who as their act together and then pick his brain.