Financing/Start Up Advice

Discussion in 'Trucker Taxes and Truck Financing' started by doubleA96, Jan 22, 2020.

  1. doubleA96

    doubleA96 Bobtail Member

    6
    1
    Aug 17, 2017
    Decatur Il
    0
    So ive been throwing around the idea of starting my own outfit and have been doing research on what is needed to start. Ive decided to go and pay a company like DAT or someone else to help me file the necessary paperwork but the big thing is the truck. Would it be a good idea to finance the truck through a bank or ive seen Ritchie Brothers auctions have financing when you buy a truck off of one of their auctions. Any and all business advice is welcome. Thanks in advance
     
    blairandgretchen Thanks this.
  2. blairandgretchen

    blairandgretchen Road Train Member

    8,335
    35,933
    Dec 9, 2011
    South west Missouri
    0
    Seeing that you asked for advice -

    Do not buy a truck without doing these 3 things -

    Oil sample, full mechanical inspection, Rig Dig report. I'd also prefer a dyno and an ECM download.

    Banks often will not finance - trucking is classified as 'high risk', our first two loans were personally secured before we went with a loan under the business name.

    On the finance topic, you stand a much better chance of survival if you buy cash, or a large downpayment.

    Wait - before that, chances of success go up, if your initial starting situation is low debt, or your spouse has a decent paying job with benefits that will cover household expenses initially.

    Truck? You know me - it's going to be 1990- 2000 year 12.7, N-14 or CAT, owned by a guy who is retiring that has full records on it and has kept it in good shape. Obviously this plan doesn't involve California.

    The start up paperwork, I think, is better done yourself - that way you learn how and why, and what to do.


    I've watched a guy (that bought my old truck) go from an office cubicle to own authority pulling van - succeed, (actually he knocked it right out of the park), by doing it the right way - to a guy that is still well in the hole 9 months later due to getting the wrong truck.

    There's many threads on here of how to do it the right way - most of the ones that involve failure don't continue the story, but there's a few that were honest enough to admit their mistakes.

    Research. Lots of it. Capitalization. Correct truck. Business plan.
     
    Matt1924, kwswan and Long FLD Thank this.
  3. blairandgretchen

    blairandgretchen Road Train Member

    8,335
    35,933
    Dec 9, 2011
    South west Missouri
    0
    The journey begins - purchased a truck.

    Here's my thread - @double yellow has a good one also - he went own authority, I leased on to a company.

    There's others in the O/O section that you may find useful.

    Just do your research and be honest with yourself (primarily), and others too - and proceed carefully.

    Good luck.
     
    Matt1924 and BENTO45 Thank this.
  4. crzyjarmans

    crzyjarmans Road Train Member

    3,220
    2,237
    Jun 9, 2010
    Home
    0
    I would stay away from Richie bro. For a truck, company I’m familiar with sends them junks, I wouldn’t take 5miles across state line!
     
  5. Accidental Trucker

    Accidental Trucker Road Train Member

    1,917
    3,232
    Jun 4, 2015
    0
    Agreed, an auction truck can work, but you should have $30K set aside for the probable event of it needing major work.

    In other words, it better be so cheap, you have to wear a mask when driving it from the auction site.....
     
    Matt1924 Thanks this.
  6. Matt1924

    Matt1924 Light Load Member

    146
    443
    Aug 6, 2018
    Georgia
    0
    A bit off-topic from the OP first thread, but has anyone heard any reviews on Currency Finance for a truck purchase? I've been running through TruckPaper and it seems they are the default agency the website is pushing. Have seen what appears to be a few decent trucks and thinking about trying them out. Thanks in advance!
     
  • Draft saved Draft deleted