Reefer price: too high?

$16,000 is on the upper end for a 2001, but to give a fair assesment I'd need the full specs and list of new parts, plus some pics would help.

A well taken care or reefer with SS sides (or at least doors and front), 9/9/7/7 LEDs, 8 fresh virgins, etc, could command 16K. If its a typical run of the mill ex fleet reefer, then no.

 

Take a look in truckpaper dot com and compare,, sounds about 5,000 tooooo high to me unless its like wm said an acceptional well kept trailer.

 

Prices have went up due to the season and demand but thats a little high for an 01 and with out knowing who or where he is getting the trailer from it hard to tell how much to high not to include what Winchester and hellandback said. Some of these places will rip you off blind have you sign a contract wont stand behind what they sell and repairs could cost you more than the trailer. Reefer trailers aint something you wake up one morning and decide to buy you need to do your homework I went to over 20 dealers and not just to look but talk. I talked to alot of O/O as well as company drivers that pull reefer. Heard some stories about $4K repair bills Just the other day I stoped to take a break and T/K had one in the shop they was working on and it was still there when I woke up and left would hate to have to pay that bill. And 22.33% intrest rate he might be better off going to a bank for financing

 

I was thinking the interest was steep as well. 2k for 12 months is high.

 

I get an interest rate of 12.5%...here is how I came up with that:

I = Prt

I = $16,000 x .125 x 1
I = $2,000

 

I'm with 2hellandback without knowing specs and condition. I paid right at $14k for a 2001 just a few months ago and it's worked out ok. About the only weak spots with it were tires and door hardware. I've taken care of the tires and had some repair work done for the doors to buy some time. Right now it's a toss-up whether I trade it after this year or rehab the doors and hardware (deal with the devil I know versus one I don't know). The reefer's been running rock-solid and the running gear is holding up well so we'll see how the rest of summer goes.

20/20 hindsight tells me I'd have been better off spending about $10k more for a better, newer trailer.

 

Try using an loan calculator at 12.5% he would only pay $1103.91 in interest
http://www.bankrate.com/calculators/mortgages/loan-calculator.aspx

 

Everyone offered good advice. Whether he can make enough to pay for it depends on too many factors to even count. Does he have truck payments? Has he pulled a reefer before and is he pulling one now? How many miles does he run? Is he leased or operating under his own authority? Answering can he make enough to pay for it is far more complicated than answering is it worth it. Only his business model can answer that and that would be a projection.

That said, I would be looking for a trailer pyment around $600, give or take a couple of hundred. That's just me and my business model. If my equipment was paid for, operating under my own authority and the right time of the year, I might do something like that if I wanted to pay for a trailer fast.