Guaranteed Truck Financing Inquiry

usually the finance charges will be high as well, in these "no credit checks"....and i would be leery of the "low down payment"....i'd suspect that's for "good" credit or "border line" at best.....

i see by your 'bio" you are a student...??? i sure do hope that is incorrect....more later.

 

Stay away from those types of financing companies. Their interests rates are sky high and the contract is geared to benefit them, not you.
You have been warned!

 

Hello Kerry, and welcome to the forum. I see by your profile that you are a student. I also see that you have made two posts, both regarding owning your own rig. Good for you.

BUT

I hope that before you jump in and sign any type of contract or try going on your own, that you will actually find a job as a company driver and work it for a couple of years first. There are a lot of O/Os (Owner/Operators) that make a very good living. Unfortunately, there are also a whole bunch who wind up losing everything they have invested plus everything else they own.

This is not a business that you can just "jump into and make good money at." NO MATTER WHAT SOME RECRUITER FOR A SCHOOL, OR A LEASE OPERATION HAS TOLD YOU! These folks make their living on commission, so they can and often do make totally false promises of what you can and will make!

Just the fact that you are asking about a company that "finances with no credit or bad credit" etc. tells me that you have little life experience. The above posters have given you good advice. Right now, you are probably saying to yourself, something like, "but I can make it work. It will be different for me."

Please, for your own sake, take the time to learn about this industry BEFORE you commit your financial future to it. Get in with a company and learn what this life is all about BEFORE buying or leasing your own rig.

It can be a very good life, and has made a lot of money for a lot of people. But it can also suddenly become a total nightmare. Get out there and live the lifestyle before you you commit yourself to those high payments.

Look around this forum, read everything that you can find. GO to some truck stops and talk with drivers. For the price of a cup of coffee, you can often learn a lot.

Good luck.

 

I have owned trucks for years. It isn't cheap owning trucks. It would be smart of you to get some driving experience before you make a decision as to whether to buy a truck or stay a company driver. It may sound enticing being able to get into a truck with no money down or bad credit. You will pay much more for those trucks than if you went through conventional lending sources. The down payment that some want would go a long way toward paying cash for a good truck.

From the time you get your first driving job, start putting money back into an account for your truck. If you later decide to not buy, then you have a good nest egg you can invest. You should never buy a truck without money in the bank. If you only save $100/week, you will have enough in a couple of years for a good down payment or possibly to pay cash for a used truck. If you can put back $200/week you will have saved over $20,000 in only two years. You can buy a decent truck for that amount of money and not have equipment payments. If you cannot afford to save a good down payment and working capital, then you are not ready to buy a truck. There is a reason that this industry has such a high failure rate when it comes to owner operators. When you become an owner operator you are no longer a truck driver. You are a businessman who happens to drive a truck.

 

Thanks for the heads up on this company folks. I had seen some ad's on there and what looked like some nice W900's and was unsure about a company called NoCreditCk. Looks can be very deceiving though. If you pay cash and buy the truck, they don't offer any warranty. You have to go through their program (in which I wanted no part of) in order to get a warranty. They seem to go through a lot of inventory though. Seeing folks have been having problems, I'm glad I didn't waste my time or money flying down there.

 

Why is it that a 11 year old class A, with decent credit cant get good financing on a 40k truck. I've been looking around and trying to get financed But getting shut down. I was approved for a loan 44k but they want 14k down with rates in the 30% range. All i keep hearing is new owner operators fail! how can you fail with 20k in the bank and no bills but the truck and insurance payment with a warranty that covers the whole drivetrain??????????

 

If you have $20,000 in the bank, you don't need a bank to finance your purchase. Take the $20,000 and find yourself a good used truck, pay cash for it, and lease it to someone and start making money. You could probably find a good truck for less than $20,000 these days.

 

Keep in mind three to four times as many fail as succeed. Now set on the other side of the desk with your hard earned money and tell me how you feel about loaning a startup a wad of money?

We are in a tough economy and loans are hard to come by for any business purpose. We are our own worst enemies. Too many drivers have purchased trucks with no idea how to run a business. Many more that do know how have let their heart guide their head and bit off more than they can chew.

I have owned a couple of trucks. Right now with a good down on truck, trailer and insurance and $10,000 operating capital, I would give myself a 50% chance of success running my own authority. If I leased to BBB or had $20,000 in operating capital I would up my chances to 70%. This is my realistic appraisal of my situation based on ownership experience and business operating experience.

The problem is that most drivers trying to buy a truck don't have a business plan or good understanding of what lies ahead. Trust me, a lender can spot this mentality across the parking lot.

I would suggest that anyone looking to get financing do a few things to make it work. If it is your first truck purchase, you will need to lease it or have some kind of contract to get favorable financing. Put together a comprehensive business plan. You can get some great templates on the SBA's Score website. You need 5-year pro forma financial statements that include an income statement, balance sheet and cash flow statement. Keep in mind that financial institutes finance equipment for businesspersons not truck drivers. If you can't do the financials, many colleges will have students assist you for a small fee. Score may offer assistance too.

With all due respect, if you want to be taken seriously you must plan and execute in a business-like manner. Even then, given the present state of the economy, it won't be easy to get financed or to be successful. This is not a build it and they will come type business. This is a plan carefully, execute flawlessly and provided you have a fair amount of good fortune you will survive and possibly be profitable type business.

If I were to put numbers to the measured success of owner operators, here's what I would say not counting fleece/purchases. 30% will fail the first year, mostly due to poor planning, bad management, failure to make quarterly tax payments and generally because they think they have a lot of money due to what is passing through their hands. 35% more will fail before the equipment is paid off mostly because they think they can make it running their business based on personal preferences and not sound business decisions. 15% will continue to run making little more than driver wages. Of this 15% half will eventually fail because they aren't making enough to escrow money for repairs and maintenance, which will eventually put them out of business. 10% will be successful and carve out an above average living for their families. The remaining 10% will be successful beyond their expectations and write their own tickets. Some will operate a single truck and set their own schedules and some will operate a small fleet.