Paying off truck

Discussion in 'Ask An Owner Operator' started by Allaby, Jun 6, 2013.

  1. Freightlinerbob

    Freightlinerbob Road Train Member

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    I would structure accelerated payments. This will save on borrowing costs and lower your monthly obligation further down the line when repairs become necessary.

    I'm Canadian, so this product is not available to you but you can likely find something similar in the US. I used the "Canadian Small Business Improvement Loan"

    My current truck was financed with this, its a demand loan over 84 months. The monthly principal obligation was calculated over that term but I was able to pay as much principal as I wanted, whenever I wanted as long as I paid the minimum for the 84 month term. Interest was charged on the remaining balance and calculated monthly.
     
    Last edited: Jun 10, 2013
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  3. Dr_Fandango44

    Dr_Fandango44 Road Train Member

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    I think we can get confused with the way some loans are structured. In the old days auto loaned were what we would call "rule of 78" which meant the interest was front loaded, which is the case with mortgages today. In which case it's prudent to pay more on the principal in order to reduce the interest. One extra payment a year on a 30 yr loan can save you a bundle. But now we are seeing more and more simple interest loans where the interest amount is equally divided over the term of the loan.
    In which case depending on the finance house, it may not be beneficial to pay off early because there is no early settlement figure. My truck is financed with my credit union at 6.9% over 48 mths and the interest is such that there would be no incentive to payoff early unless I just want to pay it off. However the credit union might give me a small discount on the Interest in due course, but I'm not expect it.
    Good luck
     
  4. Larryparker

    Larryparker Medium Load Member

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    Boynton beach, FL
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    Did you make up you mind on a truck yet. You saw mine, I love it. I also love no payments. Dont over think the problem, go with your gut. What is right for you, may not be whats right for anyone else.

    Next time, come over and say hello.

    Safe Miles,

    Larry
     
    rollin coal Thanks this.
  5. big wheels

    big wheels Medium Load Member

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    Oct 16, 2009
    florida-USA
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    Leftlane, If you wouldn't mind,Explain Trac leasing. As I never heard of it before.

    I believe your useing your depreciating as a business tax write off at the end of the year.

    This is why its better to start at the beginning of year than later. more months to depreciating. right.

    At 20% sliding scale. The depreciating write off. Is money redirected back into truck payment. In up paying alot of payments. Is this close, or faroff.

    Is this the only advantage to trac leaseing.

    before you say it. Been out hear for Only 3yrs & taking notes. An Im from Fl. Go Gators.

    But thats why i asked. You see.
     
  6. big wheels

    big wheels Medium Load Member

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    florida-USA
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    Only directed as a question only to be clear.

    Instead of paying a bank note for 48 months with interest.

    Is it plausible to take the amount of the 4 year loan payment. right.

    And just put it away and save it, even when able to double payments. Just as if you were making payments. But instead save it.

    Than,Be able to walk up to dealer an play lets make a deal for cash.

    With no interest,late payment,missed payment or worring about if able to make this months payment.

    Just maintenance,loads,broker & home time problems.





    I got a think'en problem. Most of the time. Alt not be think'en. Yall see.
     
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  7. big wheels

    big wheels Medium Load Member

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    Oct 16, 2009
    florida-USA
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    And speaking of alt not be think'en

    Just question just to make clear.

    I heard from a guy that knew a guy, that knew a guy.That said.

    In commercial semis vin # & motor # has to match. Or some kind of illegal.

    If isnt dont buy it. Now you think that boy tell.en the truth on that.



    You know what mama said, Just because your penscil is sharp. Doesn't mean your the sharpest penscil in the bunch.
     
  8. leftlanetruckin

    leftlanetruckin Road Train Member

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    Mo Via Blackpool,Lancs.
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    Vin and engine number match? News to me, especially as the engine is made elsewhere, unless the truck OEM's now own Cat, Cummapart, and so on. Bollox is a simple answer to that.
    Any lease means you claim 100% of the payments back. Purchase is claiming back 20% on a depreciating scale. Trac lease just means you own it at the end, for the buyout you choose at the beginning. I have wrote down examples of tax deductions, and cant be bothered doing it again.
    For me, and my accountant, trac lease works the best. Regardless of when you buy the truck, from year 2 onwards, you can claim more back with a lease as a rule.

    Sorry to hear about you living in Florida too....:biggrin_2559:

    Martin
     
    passingthru69 and big wheels Thank this.
  9. skateboardman

    skateboardman Road Train Member

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    flatbed heaven
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    snowy , what is shown is the total if you make all the payments, you can call and get a payoff amount at any point, the interest after that is deducted
     
    volvodriver01 Thanks this.
  10. skateboardman

    skateboardman Road Train Member

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    flatbed heaven
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    yeah unless you got paperwork showing the motoe has been changed out, a paper trail helps immensely
     
    big wheels Thanks this.
  11. SmokinBoles

    SmokinBoles Medium Load Member

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    Jun 7, 2013
    Seville, OH
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    Buy vs Lease? What's the best overall? Cash purchase used to start then move up?
     
    big wheels Thanks this.
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