Business Dilema

Hello,

My first time past here, because I need some advice.

I have been an owner operator for about 2.5yrs. I started out with an 05 mack bought cash, which cost me a tone of money, so after 8 months I traded up to a 2010 Lonestar heavy spec for pulling super-b tankers in Alberta. After 6 day of owning the new truck, I took it back due to excessive blow by and was told im in for an inframe. Covered by warranty.

Currently 877000km on the lonestar with the rebuild 177000km ago

Now, when I got the Lonestar, my credit wasn't all that great, didn't have a consigner, no property as an asset or anything, so I got in a 15% lease because I need a truck. The Mack was dying.

FF to today. Oil dried up a while back now, and I've been hauling fuel wich isn't doing well either. I've been netting 10k CAD avg with months of 7.5k CAD.
I'm looking at flat decking position which will pay a bit better, but my. Lonestar is one heavy truck. 10500kg. I need a lighter truck for the job around the 8500kg.

So I found a 2011 KW W900L with 905000km but with an out of frame engine rebuild done also 170000km ago.

The KW is 80k CAD. I owe around 60k CAD in the lonestar but I'll only likely get about 40k CAD on trade. So 20k would carry over to the new lease as negative value.


THE PROS
Switching the trucks would allow me to postdate my truck payments for 2 months untill I get paid from the new job. I wouldn't have to miss a payment which of course I'd make up later but I would take a hit on my credit. It would give me the lighter truck I need and it would be my dream truck. It would also potentially lower my monthly payments and interest rate.

THE CONS
I would be carrying a negative value of 20 odd K. I don't rightly know exactly what the KW is going to act like down the road. Haven't yet sent it to a mechanic.

Notes:
Both my Lonestar and the W900 are practically in identical shape. Difference between them being my rebuild was done inframe and no new block and I don't have a new clutch like the KW.

From a business standpoint....

Should I do it? Is it worth taking a 20k?

Sincerely

Sc2007

 

My Lonestar has a 550 hp cummins isx

The Kw is 500 cummins isx

I think I can get a better deal on the new lease, haven't negotiated anything just yet, and my interest rate would definitely be lower.

No warranty left on either truck. Remains to be seen if I can get any warranty directly from cummins, but I doubt it.

Yes KW has DEF. Only DPF on the lonestar.

 

Well, that's just it. 20k extra over however many years doesn't seem like a lot but it is digging the hole a little deeper.

The issue is that I've been run dry hauling fuel. It really REALLY doesn't pay.

I need to make a move but I'm between a rock and a hard place. I don't want to fall behind on ANY payments and have them go against my credit. But if I stay here hauling fuel I will inevitably go bankrupt. That's not good place to be.

 

Yeah that's what I thought. Fuel would pay well right behind oil. I was mistaken. Greatly so.

Lumber here is moving like crazy due to the low Canadian dollar. And glass pays very well also.

A round trip, Vancouver - Tacoma loaded both ways pays about 1500 CAD. Gross to the truck.

Right now, I do an Edmonton to Ft . McMurray, which is about a 5 hr drive one way for 1000 Cad. And I pay around 400 in fuel. We get 30 dollara FSC for this run.

 

To your first question, the company in BC requested a truck as close to 8500kg as possible. I was guessing it was for the glass work they do. Don't know rates on that.

The lumber rates in BC have been more or less the same for the last few years. The only factor that changed is the volume increase.

As to your second question, I'm not sure. Expand, and do something else.

My idea behind switching trucks, is that it would also allow for a smaller monthly payment. Therefore more wiggle room to save, repairs, etc...