Are we fixing to see a huge purge in trucking?

Difference between commercial lending. If I want two purchase 3 reefers I can call my banker and get all of them financed that day. With nothing else other than a docusign form. If I went my personal bank to finance them, they would go crazy about me asking for 300k in a few hours for some trailers. If your planning on being a one truck show home bank financing works great. Commercial lenders take a closer look at you and your potential thru them understanding your business.

 

No reason to run them into the dirt and then sale them. That is just bad business and brings bad luck for doing some one dirty when you sell it. Seems you are doing the right thing for you.

 

I meant commercial in the sense of Paccar Financial, etc. I work with the same bank I’ve used since high school. They do a lot of Ag stuff and some other local truck guys use them. They offer me pretty decent rates because I always want monthly payments instead of one or two payments a year like the farmers. They also lowered my interest rate on my last truck loan when I got rid of my line of credit with them. Then when I got this new truck in 22 they only bumped it .25 up to 5.45%. I think right now Paccar is pushing 10% to finance thru them.

 

Was this an actual CAT house that told you all you needed was a head gasket? Head gasket is a symptom not the actual problem. I'm not a master mechanic but my understanding always was if you're going to keep it, fix it right, a new head gasket ain't gonna fix anything. If you're going to sell it slap a head gasket in it, but,,,, anybody that has to stand behind a warranty doesn't just slap a head gasket in.

 

Times have changed, the interest rates too.
Try to finance a truck right now. Especially a 200K truck.
I've bought an used truck last month. My banks said no. So I had to use a commercial lender. My interest rate is 15% right now.

 

Sure, you knew the rates will skyrocket just before you've bought the truck.

 

I could if wanted to. But I didn’t order one yet because I don’t know what I’m going to be doing. I’ve banked at the same place since 1992, all it takes is a phone call. The guy that owned the cattle trailers I used to pull just got a new trailer and he said they gave him 6.3% rate on it. So I really doubt a new truck would be much different than that for me since our rates are usually similar from them. When I started buying newer stuff they also became easier to work with.

My brother financed a 1.5 year old truck a month ago thru Paccar and got 9.25%. Not sure of the purchase price or how much he put down, but I know he did pretty well selling his 2017 so should’ve had a pretty healthy down payment.

 

Why don’t you call your guy and ask him about financing a 200K truck today, he might give you different numbers. And even if he doesn't, you'll be a rare exception these days.

And also Paccar is big no-no for me, I don't do business with them.

 

Paccar financial approved me @10% down, no interest rate specified but likely .5% over prime on $250k @72 months.