Truck Financing Questions ?

before you do a lease with them do a little simple research keep up with your fuel purchases in the company truck for a few months keep up with your miles then multiply the miles by their rate subtract all your expenses dont forget if you have any bills besides the truck they have to be paid as well then you will have a beter idea of weather or not you can afford their deal

 

Greetings MartyCAG,

Looking to expand my small business and finance a commercial vehicle. I want to try and go through my credit union and start the process for the SBA Patriot Express loan due to my veteran status. However, I would like to have several alternatives to consider. Requesting any info on commercial finance companies for the two year start up. Thank you.

TBI

 

Great Answer... I am looking into find the best way to finance NOT to lease...

 

Get over the fact that you are veteran, banks don't care and neither do other civilians (alot of people say they care, but their actions tell me otherwise). It took me a few years after I got my DD214 to figure that out. Also, if you think you're gonna get an SBA loan, ha, good luck, you ever see the statistics on how many are applied for as compared to how many receive it? Bottom line is that the banks still write the loans and if the banks refuse to write loans, even if it's guaranteed by the govt., you won't get the loan. Their is no bank of SBA or SBA bank and trust, it's just another useless pile of crap government agency that doesn't live up to it's promises.
If you like driving, lease a truck for 6 months, a year, 2 years. You'll make more than you'll make as a company driver with 0-1 year experience. I went from .30 cpm to .46 cpm by doing it that way and you'll learn without having the risks associated with out right ownership. Then, after a period of time, you should pursue purchasing a truck if that's truly what you want to do with your life. Also, you'll never be able to use your truck in your business (unless you lease onto another carrier) because no insurance company will underwrite you as a driver unless you have 2+ years experience (sorry, military exp. don't count on that one either), and fat chance your company will survive without YOU driving your truck because the profit margins of paying a driver isn't wide enough to slip a tooth pick through.
On a side note, I would probably make more money as a company driver now cos I got 10+ years of OTR experience but I can't stomach the loss of my freedom to just drive home when ever I want even if I am 600+ miles away (mater of fact I just did it, aurora, IL to Middle, TN because I couldn't find a load until Sunday night, figure if I'm gonna be empty for two days, I can do it at home).

 

what's wrong with leasing? do you really understand what leasing is for? People who knock leasing don't realize what is the intended purposes of leasing. Leasing isn't designed for ownership, leasing is designed for people who are operating in extremely fluid market. Why do you think so many retail shops are leases and not owned? Now, with that said, their is two types of leasing, the ones where reputable companies do it to fill equipment needs quickly with out the risk of ownership should business go south and the ones where companies try and get a steady income source from aspiring drivers who want to own a truck as opposed to the fluid freight market. Rarely can you go from a new driver to owner overnight and if you want to own a truck leasing won't get you the entire distance. Some people, like new drivers, can't necessarily own trucks, so leasing would be an option for them because it's easier to find a company to lease from than it is to underwrite a loan.

People with little or no experience in the trucking industry will hardly ever be able to buy a truck. Anyone with CASH in hand can buy what ever is on the market, but Insurance can only be purchased by those who the Insurance companies decide to underwrite. people who intend to operate their own truck with fewer than 2 years experience won't be able to get that insurance. Finance companies Know this which is why people with little or no experience don't get approved for loans to buy trucks. Most companies that allow truck owners with little experience to lease on under their authority also know this which is why you'll get treated like #### because, 1 they don't make as much money off of you, 2, you don't have the options of going to other companies or getting your own authority that more experienced drivers have 3, you have the payment on your shoulders and if you default on it, it doesn't hurt them in the least.
if you were leasing they want you to do enough to where they make their money back, and they want that money to come in reliably so they're gonna give you slightly more than you'd make as a company driver too...at least on average that's what they do because freight prices and volumes have an eb and flow if you lease just as if you owned.
Leasing a truck is a good way for a new driver who wants their own truck in the future to get their feet wet without the risk of bankruptcy (although some leases have time requirements that risk bankruptcy, many that are operated internal to a trucking company are walk away leases which have zero risk).

 

okay maybe not the right place for this but going to put it out there as looks like the possibility of a correct answer..been watching this thread and something came to mind that the answers to might help a few out here......say you got you a truck...its paid for.....say its a 2000 and say its a 2010....the motor blows or the trans goes south..you have provable income, a contract or a lease...are there financing options for capital for repairs on either or both of these trucks ?...with good credit and/or bad ?...

 

I took a break from trucking and went back to school, well my classes were more expensive than trucking. I'm trying to buy another truck and get out of the company driver seat. Can you help, thanks

 

badaz79

two possible options that are not rip offs and right decent people to deal with

http://www.virginiatruckcenter.com/ good people as far as i can see...online apps, talk to david

http://www.damirontruck.com/default.htm bad ### {real good bad !! trucks, reasonable terms, online apps, .talk to tim

if you can get your own financing i am going to sell my 2000 freightliner fld120 classic real cheap or trade it in one in the VERY near future...its a good looking truck that runs like a top but needs some work........................dixieworkx

 

Thanks for your advice

 

Marty,

I own trucks at the moment that I paid cash for.
I am getting a good deal on a truck from a private fleet. It is a 2012 Freightliner Cascadia for 62k.
I got approved from freightliner dealer to get a 2010 Cascadia at 62k. If I contact that lender directly, can I take that same loan and buy the other truck?

On this deal, I have to put 17k down, 45k financed. 3 1/2 years financing and I'm paying 15% APR. I have good credit, score 690, it's just that I don't have any commercial credit.


Is there a contact number for you if I can get financing from you?


Thanks in advance!